Beach hut owners challenge new tax classification

beach huts

Owners of over 300 beach huts in Dorset have questioned the legality of plans to reclassify their structures as second homes, which would double their annual tax bills.

Bournemouth, Christchurch and Poole (BCP) Council wants to remove a longstanding 50% council tax discount on beach huts at Mudeford Spit starting in April. The change would increase annual payments from approximately £618 to £1,236, generating around £211,000 for the cash-strapped council facing a £9 million budget gap.

The Mudeford Sandbanks Beach Hut Association argues the second home classification doesn’t fit structures they describe as “wooden sheds” that lack running water, sewage connections, or individual toilets. Despite their basic conditions, the huts command premium prices — selling for £400,000 to £575,000, well above the area’s average home price of £313,000.

Association chair Darren Pridwell noted that owners recently saw their annual fees nearly triple to over £5,200 as the council standardised coastal charges. He criticised the tax increase as unfair given the minimal facility improvements over the years, calling it “all take and no give.”

The 344 huts can only be occupied for eight months annually, yet their high market value has prompted the council to treat them as holiday properties subject to full taxation. Of the affected owners, 231 live outside the BCP Council area.

Gemma Paterson, whose family has owned their hut for three generations, said they already rent it out to cover existing costs. She challenged the justification for higher taxes when facilities haven’t improved in two decades and seasonal restrictions limit usage.

Finance councillor Mike Cox defended the decision, emphasising that councils nationwide face severe financial pressure. He argued that the change brings fairness to second home taxation and helps fund services such as beach maintenance and flood protection that would benefit hut users.

While the revenue represents a small portion of the council’s budget shortfall, Mr Cox stated officials must “pull every lever” available. The council plans to finalise 2026/27 tax rates in February, with the beach hut reclassification expected to take effect from 1st April.
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