West Dorset MP welcomes clampdown on second home tax loophole

By Lottie Welch

2nd Feb 2022 | Local News

West Dorset MP Chris Loder has lobbied Chancellor Rishi Sunk for change
West Dorset MP Chris Loder has lobbied Chancellor Rishi Sunk for change

West Dorset MP Chris Loder has welcomed a clampdown on a second home tax loophole.

Mr Loder has lobbied Chancellor Rishi Sunak for changes, which will see second home owners pay tax if the property is not a legitimate holiday let.

Mr Loder said: "Tax avoiding absentee landlords can avoid paying council tax, but access small business rates relief by simply declaring an intention to let the property out to holidaymakers - whilst young and working people struggle with even finding a home to buy.

"These government changes will stop that tax avoidance and ensure second home owners have no loophole to avoid contributing their fair share for our services."

The Government will now be bringing in changes to the tax system, which will mean second homeowners must pay council tax if they are not genuine holiday lets.

From April 2023, second homeowners will have to prove holiday lets are being rented out for a minimum of 70 days a year to access small business rates relief, where they meet the criteria. Properties will also have to be available to be rented out for 140 days a year to qualify for this relief.

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