North West Norfolk MP James Wild has welcomed the government’s new measures to close a tax loophole for second home owners.
Owners of second homes who abuse a tax loophole by claiming their often-empty properties are holiday lets will now be forced to pay under changes to make sure they pay towards local services in the county.
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. Holiday let owners will have to provide evidence such as the website or brochure used to advertise the property, letting details and receipts. Properties will also have to be available to be rented out for 140 days a year to qualify for this relief.
James Wild said: “Having campaigned for this tax loophole to be closed, it is very welcome news that the government will ensure that second homeowners pay their fair share towards local services. While holiday lets that are genuine business should benefit from business rates relief, this will end an unfairness and mean that councils don’t lose out on income to provide local services and support village activities.”
It comes after a campaign which saw him work with local and parish councillors to highlight the previous situation which meant the council tax burden fell on those who lived in the area all year round.