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UK holiday let owners move to business rates system as council tax soars

Authorities trying to encourage local buyers are losing out
Thatched cottages with a view over the sea, beach and coastline of Sidmouth, Devon

A growing number of holiday homeowners letting out their properties are moving to pay business rates to avoid sharply rising council tax bills. 

There were 78,000 holiday lets registered for business rates on March 31 2024, up from 63,000 in 2020, according to analysis by estate agent Hamptons. But the number of homes liable for second homes council tax — recorded at October each year — has stayed at 263,000 over the four years.

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