John Howe & Co

West Yorkshire lawyer John Howe is warning second home owners they may face unexpected council tax bills under changes to rules on holiday lets.

Currently a second property in England is valued for business rates if it is available to let for at least 140 days per year.

From 1 April 2023 it will be classed as a self-catering property and valued for business rates if it is both:

• Available to let for short periods for at least 140 days in total over the current and previous tax years
• Actually let for at least 70 days in the last 12 months

John Howe, partner at John Howe & Co said: “Owners of holiday lets and second homes in England have been able to avoid council tax by registering their properties as businesses.

“The criteria is changing to ensure that only genuine holiday lets benefit from the small business rate relief.

“Owners will need to provide proof that the premises has been let for at least 70 days, or they will not be eligible for the small business rate relief and will end up paying council tax on the property. Councils will also have the powers to impose higher rate of council tax on empty and second homes, meaning a significant bill may be incurred.”

ENDS

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CONTACT: Caroline Walker on 01325 363436

Notes to editors:

Established in 1994, John Howe & Co is a specialist and independent firm of solicitors. We offer a comprehensive range of legal advisory services to private individuals and businesses across many diverse sectors.