What’s Happening in April 2025?

From April 2025, local councils 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 2023 and aims to reduce the number of empty properties in popular towns and cities.

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

How Can You Avoid the Second Home Premium?

There’s a legal and proven solution: qualify your property for non-domestic business rates by registering it as a furnished holiday let (FHL).

To qualify, your property must:

• Be available for short-term letting for 140 days or more per year
  
  
• Be actually 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.

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.

Take Action Before It’s Too Late

With the April 2025 council tax changes fast approaching, now is the time to get your property classified 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

Avoiding 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.