Twitter Facebook RSS FEEDS

Council tax shake-up could hit second home owners

Monday, 31 October 2011 3:56 PM

A planned council tax shake-up could result in an end to tax discounts for owners of second homes.

Eric Pickles, communities secretary, announced a raft of potential changes including the power for local authorities to axe discounts on unoccupied properties which at present can amount to 100 per cent.

More "flexibility" will be handed to local authorities to change tax relief levels on second homes, provided the reforms are implemented.

Matthew Sinclair, Taxpayers' Alliance director, said: “It’s not that second home owners are the most struggling group in the world but the route the government is going down by shifting away from council tax being set up as a charge for services to a charge on property is a road they need to look at very carefully.

"Council tax pays for services like rubbish collection, but you don’t throw out more rubbish because you have two houses. Residents have seen council tax bills nearly double in the last decade without the corresponding increase in services, regardless of whether it’s a first or second home, councils need to do much more to deliver savings in an effort to reverse this trend and cut council tax bills.

"We need a simpler fairer tax system and that applies to council tax too.”

Rules under which tax inspectors treat "granny flats" as independent properties which incur separate council tax bills are also to be reviewed.

Pickles said: "By removing the subsidised tax breaks for empty homes and second homes, we can cut £20 a year off families' council tax bills by treating everyone equally and fairly.

"Councils should make it easier to pay bills, and offer the same discounts for electronic billing that other companies offer as standard - this will cut paperwork and help reduce tax bills."

Seven hundred thousand properties sit empty in England and 300,000 of them have been vacant for more than six months.

A revaluation of all 21 million homes in Britain now seems unlikely to take place, which in-turn could prevent Liberal Democrat calls for a "mansion tax" from being realised.

Samantha Baden, property analyst at FindaProperty.com said: "We're pleased to see that a review of council tax bands has been postponed until 2015. This, along with the decision to freeze council tax rates this year, will ensure that vulnerable people who have invested in property are not unfairly targeted to make up the tax shortfall."

Want to be the first to know when we break a story? Follow @AboutProperty on Twitter and subscribe to our free weekly newsletter.

Related stories

Eric Pickles said he was setting aside an extra £805 million - Photo:Getty Images

Government bids to freeze council tax for second year

Average Band D taxpayer should save £72 next year if local councils take up funding offer.

 Abolition of stamp duty and reform of council tax tops list of recommendations from Mirrlees Review. Image: Thinkstock

Review calls for property tax shake-up

Abolition of stamp duty and reform of council tax tops list of recommendations from Mirrlees Review.

Property owners who leave their home empty for more than two years could face a council tax hike under new government plans.

Council tax threat to owners of empty homes

Government consults on new council tax premium as part of drive to tackle 700,000 empty homes.

 Scottish parliament at Holyrood

SNP pledge to scrap council tax

The Scottish National Party (SNP) has pledged to abolish council tax in Scotland, replacing it with a local income tax.
More new homes are needed in the UK, says the BPF.

BPF slams lack of funding for new homes

The BPF has criticised the lack of government funding for new homes.

Anyone who has owned a home in France for between 15 and 30 years could be particularly badly affected. Image:Thinkstock

Owners of French property set to pay more tax

Brits who have owned French home for between 15 and 30 years could be hardest hit.
Empty houses are a controversial subject with so many people unable to afford to get on the property ladder. Image: Liquid

Scots plan council tax levy on empty homes

Double council tax on 25,000 homes empty for more than six months could raise £30 million for affordable housing.

 The CML say they are pleased the government are in listening mode over support for mortgage interest.

Government consults on mortgage support shake-up

New claimants of support for mortgage interest face charge on their property as minister says scheme is not sustainable.
Only 31 per cent think the prospects for first-time buyers will improve over the next few years

Renters could overtake owners by 2026

Survey finds young blame older generation for pushing up house prices and not building enough homes.

 Twenty-one per cent of those delaying or scrimping on home maintenance have experienced problems or unforeseen costs as a result. Image:Thinkstock

Hard-up owners cut spending on home repairs

Delaying maintenance could be a false economy and lead to unforeseen costs, warns AA.

Search property

Headlines

Directory

Alaris

Alaris Logo
Alaris specialise in quality Bathrooms and Kitchens along with many other unique products for your home. The range of kitchens, kitchen worktops and bathrooms is extensive and the highest quality so you are sure to find what you want. New bathroom furniture, bathroom suites, taps, showers and cabinets are added regularly.

Bathrooms365

Bathrooms365 Logo
Bathroom365 supply all areas of your new bathroom - leading-edge designed bathroom suites, stylish bathroom taps and showers, all styles and forms of shower enclosures and a vast collection of bathroom furniture.

Fitmykitchen

Fitmykitchen Logo
Fitmykitchen are specialist suppliers of kitchen appliances, sink taps, waste bins and furniture. So whatever you want from kitchen sink taps to waste bins look no further than fitmykitchen, UK, the specialist suppliers of kitchen appliances, stainless steel sink taps, waste bins and kitchen furniture.

MyStampDuty

MyStampDuty Logo
We help people buying property all over the UK to minimise Stamp Duty Land Tax on residential and commercial property. If you are looking at purchasing a new home or business premises over £500,000, contact us today by completing the form on the right

Oak Furniture Land

Oak Furniture Land Logo
For hardwood furniture, including Solid Oak, Mango, Mahogany, Sheesham, Acacia, Ash and Birch, look no further than Oak Furniture Land.

Rated People

Rated People Logo
Whatever type of home improvement or garden remodelling project you have, Rated People can help you to identify the right tradesmen for the job in a way that is quick, easy, convenient and, as it is based on real-life recommendations, trustworthy.

Residential Land

Residential Land Logo
If you are looking for short or long term rentals in Central London, Residential Land have a portfolio of over 1200 flats and houses in the best postcodes across the Capital.

Simply Bedrooms

Simply Bedrooms Logo
Simply Bedrooms, a part of Sleepwell Bedrooms Ltd, supplying quality beds, wardrobes, sliding door wardrobes and bedroom furniture at low prices and great service, London and Home Counties Specialists.

Door Handles UK

Door Handles UK Logo
Door Handles UK is the UK's largest online range of Door Handle accessories, Door Hinges, Locks and Latches and so much more and all at genuine internet prices. We have a wide range of Chrome, Brass and Glass Crystal Mortice door knobs in both traditional and contemporary designs, whatever your taste and budget you will find a design to suit.

Woodlands Furniture

Woodlands Furniture Logo
We are an established family business situated in rural Herefordshire specialising in beautiful handcrafted classic reproduction furniture. Our comprehensive ranges are readily available from stock.

WowBBQ

WowBBQ Logo
Welcome to the World of Weber. We are the largest independent online Weber BBQ retailer in the United Kingdom. WOWbbq.co.uk is a Weber Partner Store and can give you the best advice for all your Weber BBQ needs.

Join our directory aboutproperty.co.uk

Twitter

Join the conversation at #aboutproperty

Directory articles

A guide to finding the right kitchen sink

When redesigning a kitchen or giving the room a makeover, it is important not to forget about the less obvious aspects of the space. Kitchen sinks are an essential fitting, but often overlooked, despite the fact there is a wide choice of styles available.

Useful tips to help find a flat in London

Looking for flats in London can be a frustrating process, given the capital's size, demand for rental accommodation and varying prices. It is vital, therefore, that you do plenty of research and act quickly to ensure you get the place that you want.

What do you need to consider when buying a mattress?

If you looking for a new mattress, you need to get the decision right, as getting it wrong could impact on your overall health and wellbeing. As well as comfort and size, you also need to consider other points, such as any health issues you may have.