Owners of second homes who take advantage of a tax loophole by claiming their additional often-empty properties are holiday lets will have to follow new measures, the Government announced last week.

From April 2023, second homeowners will have to prove holiday lets are being let out for a minimum of 70 days a year to access small business rates relief, where they meet criteria.

Second homeowners in England can currently avoid paying council tax and access small business rates relief by declaring an intention to let the property out to holidaymakers without having to prove they have let out the property.

Holiday let owners will now have to provide evidence they are within the rules, such as the website or brochure used to advertise the property, letting details and receipts.

Michael Gove, Secretary of State for Levelling Up, said:

"We will not stand by and allow people in privileged positions to abuse the system by unfairly claiming tax relief and leaving local people counting the cost."

Kurt Jansen, director of the Tourism Alliance, added:

"[The change] makes a very important distinction between commercial self-catering businesses that provide revenue and employment for local communities, and holiday homes which lie vacant for most of the year."

Talk to us about the tax treatment of your additional property.