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News Article

"In May, you MUST give your Tenants the Renters Rights Information Sheet or

YOU RISK  - £7,000 FINE  PER TENANT PER PROPERTY."READ MORE

Tory MP Lobbies Chancellor To Hunt Down “Tax Avoiding Absentee Landlords”

17th Feb 2022

A Tory MP has been busy lobbying Chancellor Rishi Sunak about who he describes as “tax avoiding absentee landlords” who have switched to holiday lets.

Image credit: Unsplash

Following a meeting with the Chancellor, Chris Loder, Conservative MP for West Dorset, when interviewed by the media, said: “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 second home owners in England are able to avoid paying council tax and allowed to apply for small business rates relief when telling authorities of their intentions to let their homes out to ‘Staycationers’.

But there are some concerns that many may not actually rent out their second homes leaving them vacant until the owners themselves use them, and are therefore unfairly ‘milking’ the tax break.

The government held a consultation and after reviewing its findings, has pledged to changing the tax system so all second home owners will be made to pay council tax if their properties are not used for actual holiday lets.

The government’s intention is that from April next year, second homeowners will need to provide bona-fide proof that their homes are being let out to holidaymakers for at least 70 days a year, so they can apply for the small business rates relief.

Holiday let owners must provide proof which include any marketing materials such as brochures and website advertising their property, as well as letting information and receipts.

The other major must do for second homeowners letting out their properties to be able to qualify for the relief, is their properties must be made available to be rented out for at least 140 days a year.

Loder added: “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 Loder refers to the major issue of locals being unable to step onto the housing ladder in May 2021, as reported by the Dorset Echo, the MP was responsible for launching a petition opposing a new housing development on land nearby to  Dorchester in his constituency.

He told the newspaper in May 2021: “This proposal will be devastating for the beauty and functionality of our county town. We need modest 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.”

Richard Merrick of PIMS, said: “ Surely his petition contradicted his ‘passion’ for local people to buy local homes?”

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Fit for Habitation|March 2019 The ACT is intended to define minimum standards a rental property MUST be and makes a clearer pathway way for Tenants to be compensated|https://www.pims.co.uk/fit_for_habitation_act_march_2019/ Guarantor|The person who provides a guarantee and promises to make payment good should the person responsible for the agreement fail|http://www.pims.co.uk/guarantors/ MEES|The Minimum Energy Efficiency Standard (MEES) Landlords are charged with the requirement to bring their rental property to a minimum EPC rating of E. Property with F and G rating will effectively be banned from the rental market April 2018 |http://www.pims.co.uk/epc/ Section 11|Section 11 of the Landlord and Tenant Act 1985 places an obligation on the landlord to maintain the structure and exterior of the property, including installations for the supply of water, gas and electricity, heating systems, drainage and sanitary appliances|http://www.pims.co.uk/landlord-section-11-repairs/ serving date|This date is the date deemed received at the property - as an example if posted allow for posting days|/serving-notice-on-a-tenant-delivery-days/ Tenancy Application|The objective of vetting is to empower yourself so you can make an informed decision as to the calibre of the prospective person. Making your decision on facts and figures is invaluable and this is why you should always take references. The application form also provides you with permission to perform credits. This form details all the information you should ever require deal with most eventualities including absconding tenants|http://www.pims.co.uk/doc/57/ Tenant Fees|From June 2019 where renting properties in England gone are the days of charging for admin, letting fees, vetting, references, inventory, check in, check out, cleaning, pet insurance or ANY other fee that is not explicitly permitted within the legislation. |https://www.pims.co.uk/ban_letting_fees_act_2019/