Labour poised for tax raid on landlords – press report
Summary
The article reports that Labour is considering changes to the tax treatment of short-term holiday lets ahead of the next Budget, following a Treasury review of self-catering accommodation. It suggests one possible outcome could be moving some or all self-catered accommodation from business rates to council tax, amid concerns about the use of small business rates relief on second homes.
Why it matters
Any change to the tax treatment of holiday lets could affect investor behaviour, local supply, and the viability of short-term rental properties. Surveyors may see knock-on effects in valuation assumptions, market demand, and instructions involving mixed-use or holiday-let assets.
Key points
- Treasury is reviewing the tax treatment of short-term lets, including self-catering accommodation.
- Concerns have been raised about second-home owners using small business rates relief to reduce tax liabilities.
- The article suggests holiday lets could potentially be moved to council tax rather than business rates.
- Current relief rules require properties to be available for 140 days and let for 70 days to qualify.
- There are around 79,000 registered holiday lets in England and 8,700 in Wales.
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