{"id":4114,"date":"2021-04-09T12:53:01","date_gmt":"2021-04-09T11:53:01","guid":{"rendered":"https:\/\/octagoncapital.co.uk\/?p=4114"},"modified":"2021-07-23T15:31:17","modified_gmt":"2021-07-23T14:31:17","slug":"government-cracks-down-on-second-home-owners-avoiding-council-tax","status":"publish","type":"post","link":"https:\/\/octagoncapital.co.uk\/guides\/government-cracks-down-on-second-home-owners-avoiding-council-tax\/","title":{"rendered":"Government Cracks Down On Second-Home Owners Avoiding Council Tax"},"content":{"rendered":"<ul>\n<li><span data-preserver-spaces=\"true\">Changes made to the tax treatment of holiday lets\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Crackdown on <\/span><span data-preserver-spaces=\"true\">60,000 self-catering properties in England are registered for business rates<\/span><\/li>\n<li>Other changes stated in the Government&#8217;s Tax policies and consultations publication?<\/li>\n<\/ul>\n<h4><span data-preserver-spaces=\"true\">The Government will tighten the rules to regulate second-home owners who are falsely claiming tax breaks. <\/span><\/h4>\n<p><span data-preserver-spaces=\"true\">The treasury became concerned that some people are claiming to let out their second home while putting minimal effort into doing so. This allows people to receive tax breaks that they are not entitled to.\u00a0<\/span><\/p>\n<p>Some\u00a0second-home owners in the UK\u00a0have avoided council tax on the properties by saying that they are holiday lets. The current rules allow them to be charged business rates. Moreover, a large proportion of these properties qualify for\u00a0Small Business Rate Relief. Therefore,\u00a0if the property has a rateable value of less than \u00a312,000, they are fully tax-exempt, allowing for significant savings.<\/p>\n<h2><strong><span data-preserver-spaces=\"true\">New Regulations<\/span><\/strong><\/h2>\n<p><span data-preserver-spaces=\"true\">The Government plans to toughen the rules with the new move laid out in the Government&#8217;s Tax policies and consultations publication. People who state that they manage a holiday rental will be required to prove that the property is rented out for a minimum of 140 days per year.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">How Relevant Is This Issue?<\/span><\/h2>\n<h3><span data-preserver-spaces=\"true\">Government statistics show:<\/span><\/h3>\n<ul>\n<li><span data-preserver-spaces=\"true\">60,000 self-catering properties in England are registered for business rates.<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">96% of these premises have a rateable value of less than \u00a312,000 &#8211; likely qualifying for Small Business Rates Relief.\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-preserver-spaces=\"true\">It is unknown how many of these are private second homes and how many are honest holiday lets. The new regulations aim to combat this uncertainty.\u00a0<\/span><\/p>\n<h2><strong><span data-preserver-spaces=\"true\">How Will This Affect Second-Home Owners?<\/span><\/strong><\/h2>\n<p><span data-preserver-spaces=\"true\">Second-home owners who have been getting business rates will be obliged to guarantee that it is rented out for at least 140 days per year. They must prove to be genuine holiday lets if they want to continue receiving the lucrative tax break. Otherwise, they will now be required to pay council tax on their property.\u00a0<\/span><\/p>\n<h2><strong><span data-preserver-spaces=\"true\">Other changes made in the <\/span><\/strong><span data-preserver-spaces=\"true\">Government&#8217;s Tax policies and consultations publication<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Regulating second-home owners falsely claiming tax breaks was the most notable move in the tax policy document, but the publication also identified many other property-related changes.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The Government published proposals to start a consultation in 2022 on creating an additional tax on the largest residential property developers.\u00a0<\/span><span data-preserver-spaces=\"true\">The Government&#8217;s new reporting requirements also evidenced plans to simplify inheritance tax. The Tax policies and consultations publication also laid out steps towards making rules on land and property VAT exemptions clearer.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Changes made to the tax treatment of holiday lets\u00a0 Crackdown on 60,000 self-catering properties in England are registered for business [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":4115,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[9,5],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Government Cracks Down On Second-Home Owners Avoiding Council Tax | Octagon Capital<\/title>\n<meta name=\"description\" content=\"The Government has confirmed that they will crackdown on 60,000 properties who are falsely avoiding council tax as second home owners.\" \/>\n<meta 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