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Subject: Times: Tax on second homes...

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CanineSam
Volunteers

Activist

Posts:246

17/04/2006 3:49 AM	Alert
http://business.timesonline.co.uk/article/0,,9559-2137959,00.html SECOND homeowners in Britain’s favourite beauty spots face a new “absenteeism” tax under plans before the Government. A new category of council tax is being planned for holiday homes that are left empty for six to eight months a year, with the result that many village and seaside resorts are turned into ghost towns during the winter months. Surely this should be extended to all second homes. Why on earth only in "beauty spots"!!! Second homes = socially undesirable = increase taxes to discourage.

Canine without a dog house.

HousePriceLottery

First Timer

Posts:5

28/04/2006 8:13 AM	Alert
Council tax on second homes is never going to make a difference though. It's way too low a tax to target the sort of people who can afford a second home. You'd need to come up with something with more teeth to really make a difference.

Q. Complete this sequence... Boom -> Bust -> Boom -> Bust -> Boom -> _____?

slicedcake

Activist

Posts:314

06/05/2006 7:16 AM	Alert
Maybe an increased tax on an owner's 3rd/4th/5th (etc) property could be a good start. Eg: Property owners are allowed to specify one place of residence(owner-occupied) and one other property; each of these taxed at the standard (100% council tax) rate. Properties beyond this could be taxed at a higher rate; eg 5% of current property value, or 500% of standard council tax rate. Also, it might be worth changing the stamp duty system so that duty is paid by the seller, not the buyer.

Michael
Administrators

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Posts:101

06/05/2006 10:57 AM	Alert
We've avoided getting into the tax situation so far with the initial campaign objectives simply because it's a real minefield putting together credible and workable tax proposals. On the face of it it does seem possible to use the tax system to try and redress the obvious imbalances that exist (what with BTL, holiday homes, second homes etc. etc.). Problem is doing it in a way which doesn't impact rental prices and tourism. Tax can be a blunt instrument and often has unintended consequences. We'd love to hear more of everyone's thoughts and suggestions on it, so keep them coming.

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