Local authorities were given the option to charge a 100pc council tax premium in April last year under plans introduced by the previous Conservative government. In Wales, authorities can charge a premium of up to 300pc.
In England, 269 out of 317 councils have hit second homes with higher council tax charges, while 20 out of 22 have done so in Wales.
Plot to close ‘tax loophole’
The Telegraph reported that Labour was plotting to close the “gaping tax loophole” with Matthew Pennycook, the housing minister, saying additional powers for councils on short-term lets and second home taxation were “under review”.
Peter La Broy, a Cornwall councillor, wants to see the loophole closed and for planning permission to be required to change homes into holiday lets.
He said: “Anyone converting their home into a holiday let to avoid paying tax should be ashamed of themselves – I’d support an increase of up to 200pc.”
A property must be available for 140 nights and actually let out for 70 nights in a year to be considered a holiday let.
In 2023, the Welsh Government tightened restrictions, raising the threshold from 70 days to 182 days.
Many second home owners will qualify for up to 100pc business rates relief if they let out only a single property.
Business rates are calculated based on a property’s rateable value, which is determined by how much income it can generate, its size and its location.
The rate of relief decreases from 100pc to 0pc for properties valued at £12,001 to £15,000.
According to Colliers, 77,241 holiday let properties will qualify for 100pc relief for 2026-27.
