Government closes Tax Loophole – 31/01/2022

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New, tougher measures announced by the Government on 14/01/2022 will target owners of second homes who take advantage of the system to avoid paying council tax and access small business rates relief by declaring an intention to let the property out to holidaymakers.

From April 2023, second homeowners will have to prove that holiday lets are being rented out for a minimum of 70 days a year to access small business rates relief. Evidence such as the website or brochure used to advertise the property, letting details and receipts will be required.

A property will only be assessed for business rates rather than council tax if the owner can provide evidence that:

  • It will be available for letting commercially for short periods totalling at least 140 days
  • During the previous year, it was available for letting commercially for short periods totalling at least 140 days
  • During the previous year, it was actually let commercially for short periods totalling at least 70 days

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