Gove closes tax loophole on second homes

Levelling Up Secretary Michael Gove has pledged to crack down on second home owners who abuse the tax system, saying measures on tax relief for holiday rents would target second home owners who pretended to let out their property but actually leave them empty. Under new rules, second home owners will only be able to register for business rates if they can prove they let their properties for at least 70 days in a year. At present they are allowed to pay business rates if they make their property available for letting for 140 days a year. However, there is no requirement for evidence that the property has been commercially let. Mr Gove said: “The Government backs small businesses, including responsible short-term letting … However, we will not stand by and allow people in privileged positions to abuse the system by unfairly claiming tax relief and leaving local people counting the cost.”

 

The Daily Telegraph

 

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