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Houdini

There's a consultation on Council tax for Holiday lets

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Hidden away in an article in the Telegraph I discovered that the Government have started a consultation on council tax rather than business rates being charged on second homes / holiday lets.

https://www.gov.uk/government/news/tax-rules-for-second-homes-to-be-reviewed-by-ministers and https://www.gov.uk/government/consultations/business-rates-treatment-of-self-catering-accommodation

Given the interest a few people on this site has on the topic can I congratulate the Government for announcing this so quietly that none of us noticed.

 

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2 minutes ago, Si1 said:

Would that be more or less.

The aim is to make the rules the same as Wales (and Scotland).

So needs to be available 140 days a year (minimum) and needs to be let (previous year) for 70 days minimum - currently you just need to pretend it can be rented in the future it will need to be.

 

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14 minutes ago, Si1 said:

Would that be more or less.

Id much prefer if ctax was levelled at 2 or 3 times the rate.

LA keeps ctax.

Business rates go to central gov.

 

Id also want a change of use planning permssion.

Holiday lets are fuxing curse around ~5 miles radius of Whitby now.

Id guess 50% of sales i nthe last 01 years have been for holiday lets. Its that bad.

They were a nuisance before. Now Leeds BS seem to have given every daft woman from West and South Yorkshire a ~200k mortgage so hey can play at haivng a holiday let.

Itll end in teras. But not before all her makes have puked in next doors garden.

 

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5 minutes ago, spyguy said:

Id much prefer if ctax was levelled at 2 or 3 times the rate.

LA keeps ctax.

Business rates go to central gov.

 

Id also want a change of use planning permssion.

Holiday lets are fuxing curse around ~5 miles radius of Whitby now.

Id guess 50% of sales i nthe last 01 years have been for holiday lets. Its that bad.

They were a nuisance before. Now Leeds BS seem to have given every daft woman from West and South Yorkshire a ~200k mortgage so hey can play at haivng a holiday let.

Itll end in teras. But not before all her makes have puked in next doors garden.

 

Yep - it's definitely nowhere near enough but until banks stop lending the f-wits money it's not going to end...

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Currently there are rules that if a holiday let is available (I think) for more than 140days then it is liable for business rates (Non-Domestic Rates NDR) rather than council tax, however they can claim small business relief if turnover is less than 15k pa (again I think). This means no CT and NDR of zero liability.

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So can I advertise my house as being available to let at £1000/day, declare it to be business premises and not pay Council Tax?  It sounds like they're having a long think about what's a very obvious loophole here.

I suppose the flip side of it is that Butlins will have a heck of a lot of Band A council tax bills, along with every caravan site in the country.  Perhaps that's a good thing, I don't know.  Look forward to lots of starving former redcoats clutching P45s in the papers.

More likely they'll just remove the small business exemption from holiday homes, so there'd be less incentive to do this and the big companies can carry on as they were - they presumably (?) already pay business rates at whatever per sqm, less than council tax but a lot more than nothing.

Edited by Tes Tickle

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2 hours ago, crazypabs said:

Currently there are rules that if a holiday let is available (I think) for more than 140days then it is liable for business rates (Non-Domestic Rates NDR) rather than council tax, however they can claim small business relief if turnover is less than 15k pa (again I think). This means no CT and NDR of zero liability.

They can classify as a business.

But then claim small business rate releif.

A real example is a friend who lives between 2 holiday lets.

He pays 1600/y council tax.

The two lets pays nothing, just a few quid to get their rubbish taken away.

So, council tax payers have to sub all the services whilst every Friday/Satur, 6-8 people tun up and stay in each hosue, creating a racket, chukcing all the extra rubbish into his bins, puking in the road. etc ect.

 

 

Edited by spyguy

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