MCMANUS HALL
  • Services
    • Limited Company Accounts
    • Taxation Services
    • Self Assessment
    • CIS
    • Registered Charities
    • Xero
    • Growth Management
    • Payroll Services
    • Bookkeeping and VAT
    • Business Consultancy
    • Company Secretarial
  • Cloud Software
  • News
  • Pricing
  • Contact
  • Login
Latest News

Business rates loophole on second homes closing

2/7/2022

 
Picture
Owners of holiday lets and second homes in England have been able to avoid council tax by registering their properties as businesses. However, from April 2023, small business rates relief will only be available if a property is let out for a minimum of 70 days a year. If you let out a second home, you may want to start planning now.

In the vast majority of cases, registering a property as a business has meant that small business rates relief is available, meaning no business rates are payable. Business registration has been possible for properties available to let for 140 days or more in a year, even if little or no realistic effort is made to attract lettings.

Changes from 1 April 2023
To benefit from business rates after next April, owners will have to:
  • Prove that a property is available as self-catering accommodation for 140 days a year, with this test met for the coming year and also the previous year; and
  • Actually rent out the property as self-catering accommodation for a minimum of 70 days a year.
It will be necessary for property owners to provide evidence, such as the website or brochure used to advertise the property, letting details and receipts.

Wales already applies similar criteria, with Scotland making changes from April 2022.

For the purpose of accounting for those 70 days, both council and business rates look at the property’s status at the end of a day. For example, if a property is let from Friday evening to Sunday morning, it is treated as let for two days using the occupancy for the Friday and Saturday nights.

New lets
There are no special rules being introduced for newly available lets, so a new let will be liable to council tax until the property has been available for 140 days and actually rented out for 70 days. Business rates will not be available until both criteria are met, subject to the property being advertised as self-catering accommodation for 140 days in the coming year.
​
The government’s press release on closing the tax loophole on second homes can be found here.

Comments are closed.

    ​Archives

    June 2025
    May 2025
    April 2025
    March 2025
    February 2025
    January 2025
    December 2024
    November 2024
    October 2024
    September 2024
    August 2024
    July 2024
    June 2024
    May 2024
    April 2024
    March 2024
    February 2024
    January 2024
    December 2023
    November 2023
    September 2023
    August 2023
    July 2023
    June 2023
    May 2023
    April 2023
    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    February 2020
    January 2020
    November 2019
    October 2019

Powered by Create your own unique website with customizable templates.
Photos from Pam loves pie, Homedust, wuestenigel, Patrick Cannon Tax Barrister, wuestenigel, Brett Jordan, wuestenigel, raisin_raisin, wuestenigel, SME Loans, Alexandre Prevot, Jirka Matousek, wuestenigel (CC BY 2.0), wuestenigel, Jirka Matousek, moneybright, aronbaker2, foundin_a_attic, QuoteInspector.com, wuestenigel, Kate#2112, Semtrio, Rawpixel Ltd, itmpa, GoSimpleTax, DPP Law, UC Davis College of Engineering, 401(K) 2013, REM Photo ~ Sketchy Internet, Chris Yarzab, focusonmore.com, focusonmore.com, willbuckner, EpicTop10.com, Tony Webster, wuestenigel, B Rosen, London Less Travelled
  • Services
    • Limited Company Accounts
    • Taxation Services
    • Self Assessment
    • CIS
    • Registered Charities
    • Xero
    • Growth Management
    • Payroll Services
    • Bookkeeping and VAT
    • Business Consultancy
    • Company Secretarial
  • Cloud Software
  • News
  • Pricing
  • Contact
  • Login