Owners of second homes who abuse a tax loophole by claiming their often-empty properties are holiday lets will be forced to pay, under tough new measures announced by the Government.
Currently, second home-owners are able to avoid paying council tax and access small business rates relief by declaring an intention to let the property out to holidaymakers.
Concerns have been raised, including by the LGA, that many never actually let their homes, and leave them empty.
Under the new rules, holiday lets must be rented out for a minimum of 70 days a year to qualify for business rates relief.
Cllr Shaun Davies, Chair of the LGA’s Resources Board, said: “Genuine small businesses – including holiday lets – should be entitled to benefit from small business rates relief, but we have warned that the current criteria are open to abuse.
“We are pleased government has listened to councils and is taking action to prevent owners of properties that are not genuine businesses exploiting the rules.
“We want to work with the Government on the further measures needed to tackle other forms of business rates avoidance, which continue to cost councils and central government more than £250 million each year.”
