Fears Over Tax Break for SecondHomes
Fears that plans for tax rebates on second homes could push rural prices even higher
25th August 2005
Rural campaigners have criticised plans for a tax rebate available to people buying second homes, saying that they could lead to even higher property prices in areas where locals are already finding it next to impossible to buy a home.
Under the plan, which will come into effect in April, people buying second homes for buy to let purposes will be able to classify them as a personal pension investment, and will therefore be able to claim up to 40% of the value back from the taxman.
While the Treasury says that this will only appeal to a small number of people, financial advisers are warning that investors are 'queuing up' to take advantage of the tax break, and that next year could see a mini property price 'spike'.
Read More: BBC : Tax plan sparks rural homes fear
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More on Second Homes : Inquiry Urges Second Homes Protection for Countryside (News, 22/05/2006), Higher Tax for Second Homes? (News, 18/04/2006), Second Home Tax Break Scrapped (News, 07/12/2005), Rise in UK Second Homes Predicted (News, 25/08/2005), 230,000 Second Homes (News, 05/05/2005) |
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