LGA responds to closure of tax loophole on second homes

"We are pleased the government has listened to councils and is taking action to prevent owners of properties which are not genuine businesses exploiting the rules."


Average street in the UK featuring a number of houses and some cars

Responding to an announcement by the Government that owners of second homes who abuse a tax loophole by claiming their often-empty properties are holiday lets will be targeted under tough new measures, Cllr Shaun Davies, Chair of the Local Government Association’s Resources Board, said:

“Genuine small businesses - including holiday lets - should be entitled to benefit from small business rates relief but we have warned that the current criteria is open to abuse. We are pleased government has listened to councils and is taking action to prevent owners of properties which are not genuine businesses exploiting the rules.

“We want to work with the Government on the further measures needed to tackle other forms of business rates avoidance, which continues to cost councils and central government more than £250 million each year.”

Notes to editors 

An LGA survey found that around one per cent of total business rates income, or £250 million, is lost to business rates avoidance each year