Government plans to 'close second homes loophole'

Second homeowners who falsely claim properties are holiday lets will need to pay more tax under new proposals introduced by the Government.

The Government plans to introduce the new rules to close the "second homes loophole", which sees people claim their "often-empty" properties are holiday homes.

The changes will mean second homeowners will have to prove the property is being rented out for a minimum of 70 days a year and will have to pay council tax if they are not genuine holiday lets.

It's hoped it will help local services in popular locations like Devon, Cornwall and the Isles of Scilly. 

What are the rules on tax for second homeowners?

Owners of second homes in England do not have to pay council tax if they declare their intention to let the property out to holidaymakers.

What will the new rules mean for second homeowners?

Under the new rules, from April 2023, second homeowners will have to prove holiday lets are being rented out for a minimum of 70 days a year to access small business rates relief, where they meet the criteria.

They will have to provide evidence such as the website or brochure used to advertise the property, as well as letting details and receipts.