Commercial holiday lets in Cornwall and Council tax

At next weeks Full Council meeting Tim Dwelly, Leader of the Labour group at Cornwall Council will introduce a motion suggesting that all Holiday Lets in Cornwall should be registered for Council Tax rather than Business Rates.

The figures, given at the Council Meeting last November are:

In her absence the Chairman read the question from Ms Bates of Penzance, who asked how many homes there were in Cornwall that did not pay Council Tax because they were designated as commercial holiday lets but did not pay Business Rates either, because they fell below the small business threshold for that levy.
The Portfolio Holder for Resources responded by saying that there were currently 7,707 holiday lets in Cornwall, of which 6,065 received
Small Business Rate Relief so did not pay any business rates

This is an interesting topic for many reasons. One of which is whether holiday let owners are contributing to the cost of service provision and another relates to the high number of such properties – although this is well below figures we have produced in the past referring to home available for letting.

Whether the outmoded system of Council tax is the best way of collecting revenue is a moot point, however there is obviously a gap in the system.

It would of course be better if more of these homes were used for residential purposes!


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