Cornwall Council issue warning to second home owners avoiding tax

By Richard Whitehouse - Local Democracy Reporter

19th Jan 2023 | Local News

Cornwall Council, County Hall, Truro (Image: Richard Whitehouse/LDRS)
Cornwall Council, County Hall, Truro (Image: Richard Whitehouse/LDRS)

The deputy leader of Cornwall Council has warned second home owners that he will do everything he can to prevent them from trying to avoid paying council tax. David Harris made the comments as the council approved proposals to impose a 100 per cent premium on council tax for second homes.

Under the change, which is subject to a change of legislation going through Parliament, councils will be given the power to double council tax bills for second homes. It is estimated that the change could raise an additional £25million a year for Cornwall Council.

Whilst the change will not come into force until April 2024 the council had to formally agree to adopt the new rules. However, there are still fears that some second home owners will try to avoid the extra charges.

Some second home owners avoid paying council tax by registering their properties as holiday let businesses and then claiming business rates relief. To do this they have to provide evidence that their property is available for let for 140 days a year.

The rules are set to be tightened this year after the Government altered the rules which mean that people claiming business rates relief will have to also provide evidence that their properties have actually been let for at least 70 days in a year.

At a meeting of full council yesterday Cornwall Council deputy leader David Harris said that there are currently around 13,292 second homes in Cornwall and that the extra council tax premium could provide up to £25m to the council. He also highlighted that as well as providing extra income for Cornwall Council it will also provide additional money for town and parish councils through their share of the council tax.

Cllr Harris added: "It will also free up some properties if people decide to stop using them as second homes."

But he warned that he would be watching closely should anyone try and avoid the charges. He said: "I am sure that some folk will be trying to avoid this premium when it comes in. I can assure you that I will be working very closely with officers on any possible dodge and how we might block those dodges."

Independent councillor Andrew Mitchell was concerned that people would continue to try and avoid charges and said that the Government should do more to close all loopholes. "There will be a number of people who will go down that route of loopholes. It (the extra charges) is a positive step but it is only one half of the side of the coin that needs to be addressed.

"These loopholes should be closed. People should not be allowed to say 'I don't want to pay this and will say my home in Surrey will be my second home and my home in Cornwall will be my primary residence'."

Some councillors said that whilst the Government plans for charging second homeowners more council tax councils should be allowed to charge even higher rates. They wanted to see it raised to the same level as Wales where local authorities are allowed to charge second homes 300 per cent council tax.

The council approved the plans to introduce a premium on council tax for second homes and also agreed to ask the leader of the council to write to the secretary of state to allow local councils to charge second home owners up to 300 per cent council tax.

     

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