This site uses cookies to improve your browsing experience and analyse use of our website. By clicking ‘I accept’ you agree and consent to our use of cookies. You can find out more about our cookies here. Find out more

Tax changes on second homes and holiday lets

Tax changes on second homes and holiday lets

Matthew Grief


From April 2023, second homeowners will be required to provide proof that their property is an operating holiday let to qualify for small business rates relief.

Under this new legislation, second homeowners will need to prove that their property will be available for holiday lets for a minimum of 140 days in the coming year. They will also need to prove that in the previous year it was available to let for at least 140 days and rented for at least 70 days.

Proof can be provided in the form of the website or brochure used to advertise the property, letting details or receipts. Failure to prove a genuine holiday let will result in the homeowner being required to pay council tax on the property.

What counts as a holiday let?

The business rates rules for holiday lets only apply to buildings or self-contained parts of buildings that would otherwise be eligible for council tax. This does not include caravans, which are usually assessed under a different system to bricks and mortar buildings.

When counting the days that a property was rented out as a holiday let, the government has confirmed that only the days where the property was occupied at the end of the day should be included. For example, if a property was let out from Friday evening to Sunday morning, it would count for two days.

To find out more about the upcoming changes, visit

For information on how you might be affected, please contact your usual Moore adviser.