Laura Sharman 14 January 2022

Gove closes tax loophole on second homes

Gove closes tax loophole on second homes image
Image: ian woolcock/Shutterstock.com

A loophole that allows second home owners to avoid paying council tax by falsely claiming their properties are holidays lets will be closed under new measures.

The Government has announced changes to the tax system to ensure people are paying their fair share towards local services.

At the moment, home owners in England can avoid paying council tax and access small business rates relief by declaring an intention to let the property out to holidaymakers.

Under the new measures, second homeowners will have to prove holiday lets are being rented out for a minimum of 70 days a year and provide evidence such as the website or brochure used to advertise the property, letting details and receipts.

Secretary of state for levelling up, Michael Gove, said: 'The Government backs small businesses, including responsible short-term letting, which attracts tourists and brings significant investment to local communities. However, we will not stand by and allow people in privileged positions to abuse the system by unfairly claiming tax relief and leaving local people counting the cost.

'The action we are taking will create a fairer system, ensuring that second homeowners are contributing their share to the local services they benefit from.'

The move has been welcomed by the Local Government Association (LGA) who have previously warned the current criteria is open to abuse.

Cllr Shaun Davies, chair of the LGA’s Resources Board, said: 'We are pleased government has listened to councils and is taking action to prevent owners of properties which are not genuine businesses exploiting the rules.'

SIGN UP
For your free daily news bulletin
Highways jobs

Pause Practice Lead

Oxfordshire County Council
£54495 - £57864
Are you an ambitious, creative and influential leader who is passionate about reducing the number of children being removed into care by supporting women to bring about change in their lives? About Pause Pause works with women who have experienced re Oxford
Recuriter: Oxfordshire County Council

Multi Schools Council Quadrant Facilitator

Essex County Council
£29121.00 - £34259.00 per annum + + 26 Days Leave & Local Gov Pension
Multi Schools Council Quadrant FacilitatorPermanent, Full Time£29,121 to £34,259 per annumLocation
Recuriter: Essex County Council

Early Help Navigators (MASH Service)

London Borough of Richmond upon Thames and London Borough of Wandsworth
£40,737 - £49,365 per annum
Early Help Navigators (MASH Service)
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Residential Worker

Durham County Council
£30,024 - £33,699 plus allowances
WHAT WE DO MATTERS The team at Aycliffe Secure Centre provide a caring, trauma informed and aspirational environment for young people aged between 10 Newton Aycliffe
Recuriter: Durham County Council

Occupational Therapist

Oxfordshire County Council
£38220 - £40777
Help us deliver our vision for adult social care in Oxfordshire About us At Oxfordshire County Council, you do not just work for us… you learn, grow, and thrive with us. Whatever your career aspirations are in adult social care, we are here to supp Banbury
Recuriter: Oxfordshire County Council
Linkedin Banner