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

Senior/Principal Regeneration Officer

Fareham Borough Council
£45,465 - £55,379
Our town centre regeneration is moving from planning to delivery, and we're looking for someone who wants to help make regeneration happen. Fareham, Hampshire
Recuriter: Fareham Borough Council

Chief Executive

Cheshire East Council
Competitive Salary
You will lead an organisation with ambition, complexity and reach, while helping shape the future of a place Cheshire
Recuriter: Cheshire East Council

Director of Family Help & Children’s Social Care

Cheshire East Council
Up to £123,477
To help drive this vision forward, we’re seeking an exceptional Director of Family Help & Children’s Social Care. Cheshire
Recuriter: Cheshire East Council

Deputy Director Children’s Services (Director of Children’s Social Care)

Devon County Council
Competitive Salary
Reporting to the Director of Children’s Services, you will lead services across one of England Devon
Recuriter: Devon County Council

Director of Law & Corporate Governance (Monitoring Officer)

Northumberland County Council
£ 143,779 - £158,197
With the forthcoming retirement of our current postholder, we are seeking an outstanding leader Northumberland
Recuriter: Northumberland County Council
Linkedin Banner