What Second-Home Owners Need to Know About New Council Tax Premiums in Cornwall
As the demand for housing in Cornwall rises, local authorities are implementing new measures to make better use of available housing and balance the needs of full-time residents with those who own second homes. If you own a second home in Cornwall, recent changes to Council Tax regulations may impact your property costs starting in 2025. Here’s what you need to know.
Understanding the New Council Tax Premium
Under the Levelling Up and Regeneration Act, Cornwall Council has agreed to introduce a Council Tax premium of an additional 100% for second homes, effective from 1 April 2025. This means that second-home owners will pay double the standard rate of Council Tax, aligning with efforts to encourage fairer housing opportunities for local communities.
A second home is defined as a furnished property owned for personal use but not considered a main residence. If your Cornwall property falls into this category, it will likely be subject to the premium—unless it qualifies for an exemption.
Exemptions to the Second Homes Premium
While the new Council Tax premium applies broadly, certain types of properties are exempt. The following are not subject to the premium:
Annexes that are part of the main home
- Job-related accommodation where the property is linked to employment
- Occupied caravan pitches and boat moorings
- Seasonal homes where local regulations prohibit year-round or permanent occupancy
Additionally, some 12-month exemptions apply in specific cases, including:
- Properties with restricted occupancy conditions under the Town and Country Planning Act 1990, such as: restrictions preventing continuous occupancy for 28 days or more within a year and designation as holiday-use-only or non-primary residence
- Properties actively marketed for sale or let, provided they are advertised at a fair market rate.
- Properties that have recently gone through grant of probate or letters of administration may also qualify for a 12-month exception.
Cornwall Council is currently reviewing all properties classified as second homes. If your second home is now permanently occupied or has undergone a change in usage, it’s essential to notify the Council.
Converting a Holiday Let to Business Rates
For properties rented out as holiday lets, the Valuation Office Agency (VOA) determines if a property should be charged Council Tax or Business Rates. To qualify for Business Rates, your holiday let must meet the following criteria:
- The property has been available to let commercially for at least 140 nights in the past 12 months and will continue to be available for at least 140 nights in the coming year
- The property has been commercially let for a minimum of 70 nights in the past 12 months
Holiday lets initially incur Council Tax until all these requirements are fulfilled. Once met, you may request the VOA to reclassify your holiday let under Business Rates. Note that this decision lies with the VOA, not your local Council.
Preparing for 2025 and Beyond
For second-home owners in Cornwall, these upcoming changes represent a significant shift in property expenses and regulatory compliance. Proactively understanding and preparing for these requirements will help you make the most of your second home while staying in line with local regulations.
If you have any questions about these updates or need support with compliance, our Business Rates Consultancy team is here to help. Feel free to reach out to us at [email protected].
