By Julia Penhaligon

The government has said it will close a tax loophole that allows second home owners to dodge council tax by claiming the properties are available for holiday lets.

There are thought to be nearly 7,000 second homes in Cornwall which take advantage of the loophole by registering as a small business.

In the vast majority of cases the owners of these properties currently pay nothing at all.

The issue has been highlighted by Opposition parties in Cornwall for several years, and last year Cornwall’s Conservatives also joined the call after the government showered millions of pounds in “Covid cash” on second home owners.

The government has been consulting on the tax loophole since 2018, when current chancellor Rishi Sunak was a junior housing minister.

The Treasury yesterday (Tuesday) said it would "ensure that owners of properties that are not genuine businesses are not able to reduce their tax liability by declaring that a property is available for let but make little or no realistic effort to actually let it out".

The holiday lets’ move relates to properties in England which the owner declares are intended to be made available to let 140 days in the coming year, making them liable for business rates rather than council tax.

In 96% of cases, they have such a low rateable value that they qualify for small business rates relief which means they pay nothing at all.

There is currently no requirement for checks to verify that the properties are actually commercially rented out, but some councils are more proactive than others. Cornwall Council's Liberal Democrat-Independent administration has claimed it was powerless to act.

Right - In February 2018 a protest march organised by Labour councillor Cornelius Olivier made its point in Mousehole, a hot-spot of second home ownership where local families struggle to find somewhere to live