Higher taxes for second home owners as business rate loophole closes
Following a consultation in November 2018 and a statement in the March 2021 Budget, the controversial business rates loophole for second homes will soon be closing.
The UK government is cracking down on owners who avoid paying council tax and claim business rates relief on their second homes, without actually letting them out to holidaymakers.
Local authorities in popular destinations like Cornwall and the Lake District have been losing millions of pounds as tax-dodging second home owners leave their holiday residences sitting empty.
The rules regarding business rates relief for second homes will be changing from April 2022 in Scotland and April 2023 in England – so let’s take a look at how this could affect you.