Tory MP lobbies Sunak over “tax-avoiding absentee l...

An MP has lobbied Chancellor Rishi Sunak about what he calls “tax avoiding absentee landlords” who have moved into the holiday lets sector.

Chris Loder, Conservative MP fort West Dorset, met with Sunak and later told the media: “Tax avoiding absentee landlords can avoid paying council tax, but access small business rates relief by simply declaring an intention to let the property out to holidaymakers – whilst young and working people struggle with even finding a home to buy.”

Currently, owners of second homes in England can avoid paying council tax and access small business rates relief by declaring an intention to let the property out to holidaymakers.

However, concerns have been raised that many never actually let their homes and leave them empty and are therefore unfairly benefiting from the tax break.

Following a consultation, the government says it will now bring changes to the tax system, which will mean second homeowners must pay council tax if they are not genuine holiday lets.

From April 2023, second homeowners will have to prove holiday lets are being rented out for a minimum of 70 days a year to access small business rates relief, where they meet the criteria.

Holiday let owners will have to provide evidence such as the website or brochure used to advertise the property, letting details and receipts.

Properties will also have to be available to be rented out for 140 days a year to qualify for this relief.

Loder continues: “These government changes will stop that tax avoidance and ensure second home owners have no loophole to avoid contributing their fair share for our services.”

Although the MP cites the problems of finding homes for local people to buy, in May 2021 - according to the Dorset Echo - Loder launched a petition against a new development on land near the town of Dorchester in his constituency.

At the time he said: “This proposal will be devastating for the beauty and functionality of our county town. We need tmodest development to thrive, but this proposal offers little back to the community.”

He added: “I would urge everyone who cares about our county town and who feels as passionately about it as I do sign my petition. I want to do all I can to make sure people’s objections are heard.”

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