From April 2023, owners of second homes in England will have to prove that their properties are actually rented out as a self-catering holiday let for at least 70 days a year in order to qualify to pay business rates rather than council tax.
There is currently no requirement for evidence to be produced that a property has been commercially let out, which means second home owners have been able to avoid paying council tax by advertising the property as available for rental to holidaymakers for at least 140 days a year, even if it is never (or rarely) actually let.
Holiday let owners will have to provide evidence such as the website or brochure used to advertise the property, letting details and receipts.
If this change affects you, please don't hesitate to contact us for advice.
As a Tax Accountant, I believe closing the loophole is a step in the right direction to promote tax equity. This will help prevent wealthy individuals from using second homes as a tax shelter, creating a more level playing field for everyone.