How to Avoid the 100% Council Tax Premium on Second Homes in England

What's Happening in April 2025?

From April 2025, local authorities in England will be able to apply a 100% council tax premium on furnished second homes that are not a main residence. This new rule is part of the Levelling Up and Regeneration Act 2023and aims to reduce the number of empty properties in popular towns and cities by local councils.

If you own a second home that's not being used as a primary residence, your council tax bill could double.

What is Council Tax?

Council tax is a local charge paid on residential properties in England to help fund services provided by local authorities, such as waste collection, policing, schools, and road maintenance.

The amount you pay depends on the property’s council tax band, which is based on its value, and the rates set by your local council.

Usually, the person living in the property is responsible for paying it, but for second homes or empty properties, the owner is typically liable.

How Can You Avoid the Second Home Premium?

There's a legal and proven solution: qualify your property for non-domestic business ratesby registering it as a furnished holiday let (FHL) on the UK Government website.

To qualify, your property must:

• Be available for short-term letting for 140 days or more per year
• Make sure your property is let to paying guests for at least 70 days per year

If you meet both conditions, your second home can be reclassified as a business property and placed on the non-domestic rates list—meaning no council tax, and potentially zero business rates if you qualify for Small Business Rate Relief.

What About My Primary Residence?

The 100% council tax premium only applies to properties classified as second homes, meaning they are furnished but not used as someone’s main residence.

Your primary residence — where you live most of the time and are registered for things like voting, bills, and banking — will not be affected by these additional charges.

However, if you own multiple properties, councils may look at evidence to determine which one is genuinely your main home, so it’s important to keep your records consistent and up to date.

Why Work with a Professional Property Manager?

While the process may seem simple, it involves compliance, reporting, and documentation that many owners struggle to manage alone.

This is where Pass the Keys can help. We're the UK's leading short-let management service and an official Airbnb partner, trusted by hundreds of second homeowners nationwide.

What we do for you:

• Ensure your property is listed for 140+ days per year
• Secure enough bookings to meet the 70-night letting requirement
• Provide documentation for councils and the Valuation Office Agency (VOA)
• Manage everything from guest bookings and cleaning to pricing and reviews
• Help you turn a second home into a fully compliant, income-generating asset

Save on Tax – and Earn Income Too

Switching your second home to a short-let business doesn't just avoid the tax increase—it also helps you generate additional income with ease.

With Pass the Keys, you benefit from:

• Professional marketing across Airbnb, Booking.com and more
• Dynamic pricing to optimise nightly rates
• Full guest management, including 24/7 support
• Local support from our network of trusted franchise partners

Did you know?

Many of our hosts earn thousands per year while saving on tax and eliminating the hassle of property management.

Security Verification and Safety

Security and verification are important considerations for anyone operating a short-let or second home property.

Many booking platforms now use identity checks with digital security services, secure payment systems, and guest verification processes to help reduce the risk of fraud, damage, or unauthorised parties.

Property owners can also improve security by using smart locks, noise monitoring devices, and clear guest screening procedures.

Alongside protecting the property itself, it’s equally important to ensure personal information and financial details are kept secure through trusted platforms and strong account security practices.

Take Action Before It's Too Late

With the April 2025 council tax changes fast approaching, now is the time to get your address verified correctly and earning income.

Don't wait until the premium kicks in.

Book your free consultation with Pass the Keys:

👉 www.passthekeys.com

Final Thought

Protecting your home from the second home council tax premium is possible—but it takes preparation and the right support. Let Pass the Keys guide you through the process and help you turn your second home into a smart, stress-free business.