Second Homes & Council Tax loophole

Since the double council tax rate for second homes has come in, Cornwall Council is finding that a number of second homeowners have asked the Valuation Office to re-register their properties as holiday businesses rather than homes. The financial impact of this on Cornwall Council has been significant. They are having to refund council tax to the owners of these properties for the years these properties were let out or available to let, sometimes as far back as 1993! This loophole has already cost Cornwall Council up to £10 million this financial year alone with future losses being covered by the Government.

Meanwhile, Cornwall Council is struggling financially and looking to cut council tax support in next year’s budget, which would hugely affect low-income households.

Genuine holiday let businesses, which are occupied most of the year, provide jobs and money into the local community, do add to Cornwall’s economy.  However, in recent years that has got out of kilter as hotels and B&Bs have become fewer and the number of holiday lets, aided by online booking giants, has hugely expanded.

I have raised what has happened in Cornwall in the House of Commons and welcome the Government's call for evidence on the tax treatment of holiday lets.  We need fair tax on property in Cornwall, and we need more first homes in Cornwall for the people of Cornwall.