Double Council Tax on Holiday Lets – What it Means and How to Avoid it
South Devon’s second-home owners are facing a significant tax increase. From April 2025, councils will be able to charge double council tax on second homes that are not used as a primary residence. This means thousands of property owners could see their costs double overnight for council tax on holiday lets.
But there’s a smarter way to manage your second home – and avoid paying council tax entirely.
Letting Your Property as a Holiday Home
By letting your second home as a furnished holiday let, you can switch from paying council tax to business rates, which are often zero-rated thanks to Small Business Rate Relief. This means:
✅ No council tax – Avoid the double charge
✅ Potential for zero business rates – If your property qualifies
✅ A profitable income stream – Turn an expense into an earning asset
How to Qualify for Business Rates
To move your property from council tax to business rates, it must be:
- Available to let for at least 140 days per year
- Actually let for at least 70 days per year
More details on the eligibility criteria can be found on the South Hams Council website.
If your property qualifies, you can calculate your potential business rates liability using the Government’s Business Rates Calculator.
Why Choose Finest Stays?
At Finest Stays, we make the transition seamless. We handle everything – from marketing and guest bookings to housekeeping and guest experience. Our portfolio consistently delivers high occupancy rates, ensuring your property meets the required letting criteria while generating strong returns.
With the upcoming tax changes, there’s never been a better time to turn your second home into a thriving holiday let. Get in touch today to learn more about holiday home letting.
📩 Contact us now to find out how we can help.
