Cornwall Council could double tax bills for second homeowners

Cornwall Council is looking to decide whether to charge second homeowners double council tax if new government legislation is approved.

From April 2024, local councils are set to be able to make changes to council tax, including charging extra for second homes

The additional money could generate millions of pounds, which can be used to fund vital council services.

Cornwall currently has more than 13,000 second homes, one of the highest levels of second homes in the UK.

The change could generate as much as £27 million to help fund the local economy.

Under the changes, Cornwall Council could also introduce a 100 per cent premium on empty homes which have been left empty for between one and five years, encouraging owners to bring disused properties back into use.

A report on the extra council tax charges will be put in front of the council’s customer and support services overview and scrutiny committee when it meets on Tuesday 6 December.

It states: “Second home ownership within Cornwall is significant and is recognised to have a negative impact in terms of the supply of homes available to meet local housing needs.

"The Council Tax Base (CTB) return that was submitted to Government in October 2022 showed that Cornwall Council has 13,292 properties classed as second homes on the Council Tax system.

“Initial, high-level analysis, shows that the application of a 100% premium on second homes within Cornwall could generate around £27m in additional council tax revenue, excluding allowance for non-collection.”

Although the change would allow second homeowners who pay council tax to be charged more, it will not close a loophole which allows people to register their second homes as holiday lets.

This then allows owners to avoid paying council tax and they can then claim business rates relief, which means they avoid paying any charges at all.

Currently, homes which are available for let for 20 weeks a year are allowed to be classed as businesses.

From April 2023, owners will also have to provide evidence that properties have actually been let for periods totalling at least 70 days a year.