Holiday home owners who have registered their property for business rates will now have to show HMRC that they have actively marketed their property and let it for 140 days per year in order to qualify. This could result in thousands of second homeowners facing rising costs.
Second homes registered for business rates instead of council tax, pay no tax at all if the rateable value is less than £12,000, or a reduced rate if above this threshold. Until now homeowners have not been required to show that they meet Inland Revenue’s criteria.
If you’re unsure about whether your second home should be registered for council tax or business rates, please do not hesitate to contact us on 01384 376964
Folkes Worton – Accounting for the Future