Short lets tax ‘to be included in Budget’ – claim
Chancellor Rachel Reeves is reported to have changed her mind and is planning a new 'tourism tax' on Airbnb and holiday lets in next week's Budget.
In yet another ‘leak’ of possible property taxation, Chancellor Rachel Reeves is reported to be considering a tough ‘tourism tax’ on Airbnb rentals in next week’s Budget.
Government sources revealed that Reeves has been persuaded the new levy could work, according to The Times.
New power
City mayors in England such as Sadiq Khan in London and Andy Burnham in Manchester, would be given the power that already exists in Scotland and Wales.
Edinburgh is set to introduce a 5% charge on holiday lets from July next year.
And the English Devolution and Community Empowerment Bill, which is progressing through Parliament, could be amended to allow it in England.
No limit
There would be no cap apparently on how much mayors could add to Airbnb and hotel stays.
Not every mayor is in favour of the idea though, with Tees Valley Mayor Ben Houchen calling it a “cash grab”.
The Chancellor had previously rejected the idea of a tax, but has now seen how it is working in cities in Europe, such as Paris.
Compete with agents
Last year, The Neg reported Airbnb was planning to compete with letting agents for ‘medium-length’ tenancies.
Brian Chesky, Co-founder and CEO at Airbnb, said that rentals of 28 days or longer represented a “huge growth opportunity” for the firm.
He was responding to a rise in bookings between 30 and 90 days in recent years, saying what he terms ‘long-term rental stays’ now accounted for between 17-18% of Airbnb’s overall business.
