2nd home? - Then cough up sunshine....
Discussion
http://www.telegraph.co.uk/news/newstopics/politic...
"Government considers doubling council tax on second homes"
"Council chiefs are demanding powers to impose steep increases in council tax on properties kept as second homes or holiday lets.
Under the plans, bills would rise to double the standard rate, leaving some owners thousands of pounds out of pocket.
John Denham, the Communities Secretary, is weighing up the proposal after it was put forward by councils in a formal consultation.
His spokesman confirmed that the idea was under active consideration.
Supporters of the move claim that increasing council tax on second homes would discourage owners from leaving them empty most of the year, whilst raising money to spend on affordable housing."
Frankly, I'm amazed that property taxes in general are an area that has gone largely unexplored by this Government, however, given the state of our national finances going forward, I believe we will hear a lot more of this subject over the coming years from whoever may end up in charge. Like motorists, a potential soft target cash cow.
"Government considers doubling council tax on second homes"
"Council chiefs are demanding powers to impose steep increases in council tax on properties kept as second homes or holiday lets.
Under the plans, bills would rise to double the standard rate, leaving some owners thousands of pounds out of pocket.
John Denham, the Communities Secretary, is weighing up the proposal after it was put forward by councils in a formal consultation.
His spokesman confirmed that the idea was under active consideration.
Supporters of the move claim that increasing council tax on second homes would discourage owners from leaving them empty most of the year, whilst raising money to spend on affordable housing."
Frankly, I'm amazed that property taxes in general are an area that has gone largely unexplored by this Government, however, given the state of our national finances going forward, I believe we will hear a lot more of this subject over the coming years from whoever may end up in charge. Like motorists, a potential soft target cash cow.
Durruti said:
Frankly, I'm amazed that property taxes in general are an area that has gone largely unexplored by this Government, however, given the state of our national finances going forward, I believe we will hear a lot more of this subject over the coming years from whoever may end up in charge. Like motorists, a potential soft target cash cow.
105% rise under Labour not enough for you?Puggit said:
Durruti said:
Frankly, I'm amazed that property taxes in general are an area that has gone largely unexplored by this Government, however, given the state of our national finances going forward, I believe we will hear a lot more of this subject over the coming years from whoever may end up in charge. Like motorists, a potential soft target cash cow.
105% rise under Labour not enough for you?Durruti said:
http://www.telegraph.co.uk/news/newstopics/politic...
"Government considers doubling council tax on second homes"
"Council chiefs are demanding powers to impose steep increases in council tax on properties kept as second homes or holiday lets.
Under the plans, bills would rise to double the standard rate, leaving some owners thousands of pounds out of pocket.
Unless you happen to be an MP no doubt..."Government considers doubling council tax on second homes"
"Council chiefs are demanding powers to impose steep increases in council tax on properties kept as second homes or holiday lets.
Under the plans, bills would rise to double the standard rate, leaving some owners thousands of pounds out of pocket.
A bit off topic but I saw the buy to let frenzy going insane back in the early noughties and predicted an obvious bust to come, and suggested the best way to slow it down would be a tax on rental income so that the income would no longer cover the repayments. I still think something like that will be necessary to stop us going round in circles. During the boom I watched whole developments being snapped up by investors pushing the prices out and out, crazy.
I guess many of you here are landlords, so won't like it when I say I think a major correction is still necessary in property prices, and hopefully will happen this decade.
I guess many of you here are landlords, so won't like it when I say I think a major correction is still necessary in property prices, and hopefully will happen this decade.
Edited by deeps on Monday 25th January 00:57
I think there's little that can be done about tax rises.
None of us want them, however, they will have to happen (along with spending cuts) as the govt. have screwed the country's finances. Rather than spending what they can afford or lightly raising taxes (on top of all the hidden taxes as well) to pay for things, they've just borrowed and borrowed and it has to be paid back. People are doing this on a personal level, paying off loans/car finance etc. and to do so have to make some sacrifices. The government have to do the same.
This was always coming but you'll hear little about it before the election as it will be deemed politically sensitive. That said, it could be a vote winner (being honest with the country etc.) to say that things, unpleasant as they are, need to be done.
Tory/Labour/LibDem it matters not, they will have to do it (not necessarily on 2nd homes as per this thread but certainly in other ways, income tax, other taxes etc.).
There also needs to be a culture shift as well as sooooo much is wasted when you compare it to much (not all) of the private sector (who can't raise taxes to pay for inefficiencies, so they have to be efficient). Some more than others of course, many large companies will have a lot of "fat" that could be trimmed but at least there is still the motivation to do so, especially in harder times. Many will just "cut costs" (i.e. people) though rather than "streamlining" (horrid term) processes and so on.
All imo, etc. etc. blah blah blah.
None of us want them, however, they will have to happen (along with spending cuts) as the govt. have screwed the country's finances. Rather than spending what they can afford or lightly raising taxes (on top of all the hidden taxes as well) to pay for things, they've just borrowed and borrowed and it has to be paid back. People are doing this on a personal level, paying off loans/car finance etc. and to do so have to make some sacrifices. The government have to do the same.
This was always coming but you'll hear little about it before the election as it will be deemed politically sensitive. That said, it could be a vote winner (being honest with the country etc.) to say that things, unpleasant as they are, need to be done.
Tory/Labour/LibDem it matters not, they will have to do it (not necessarily on 2nd homes as per this thread but certainly in other ways, income tax, other taxes etc.).
There also needs to be a culture shift as well as sooooo much is wasted when you compare it to much (not all) of the private sector (who can't raise taxes to pay for inefficiencies, so they have to be efficient). Some more than others of course, many large companies will have a lot of "fat" that could be trimmed but at least there is still the motivation to do so, especially in harder times. Many will just "cut costs" (i.e. people) though rather than "streamlining" (horrid term) processes and so on.
All imo, etc. etc. blah blah blah.
Edited by Dracoro on Monday 25th January 01:16
Durruti said:
Frankly, I'm amazed that property taxes in general are an area that has gone largely unexplored by this Government, however, given the state of our national finances going forward, I believe we will hear a lot more of this subject over the coming years from whoever may end up in charge. Like motorists, a potential soft target cash cow.
Well, we're taxed for living in a property, when we buy a property and often when we sell a property. What more do you want?
deeps said:
A bit off topic but I saw the buy to let frenzy going insane back in the early noughties and predicted an obvious bust to come, and suggested the best way to slow it down would be a tax on rental income so that the income would no longer cover the repayments. I still think something like that will be necessary to stop us going round in circles. During the boom I watched whole developments being snapped up by investors pushing the prices out and out, crazy.
I guess many of you here are landlords, so won't like it when I say I think a major correction is still necessary in property prices, and hopefully will happen this decade.
Technically, you do have to pay tax on 'Rental income'.I guess many of you here are landlords, so won't like it when I say I think a major correction is still necessary in property prices, and hopefully will happen this decade.
Edited by deeps on Monday 25th January 00:57
Since any rent you take in is seen as 'profit' in a business, and therefore falls under the same tax system that regular business income falls under.
Ofcourse, a lot of people don't do it...but the law exists already.
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Ta...
I think I'd support a doubling of Council Tax. My Dad lives in a little village in Devon. About three quarters of the houses in the village are second homes, bought by Investment w
kers with their bonuses.
These people have effectively bid up the prices of houses there to a level where locals can't afford to buy, the fact that houses are empty for large parts of the year has meant that the few shops that were in the village have closed, and worst of all, the local pub is under threat. Doubling Council Tax won't really hurt these people, but it could form part of a package of measures to fix a problem that is really hurting rural Britain.
kers with their bonuses.These people have effectively bid up the prices of houses there to a level where locals can't afford to buy, the fact that houses are empty for large parts of the year has meant that the few shops that were in the village have closed, and worst of all, the local pub is under threat. Doubling Council Tax won't really hurt these people, but it could form part of a package of measures to fix a problem that is really hurting rural Britain.
Incredible Sulk said:
I think I'd support a doubling of Council Tax. My Dad lives in a little village in Devon. About three quarters of the houses in the village are second homes, bought by Investment wkers with their bonuses.
These people have effectively bid up the prices of houses there to a level where locals can't afford to buy, the fact that houses are empty for large parts of the year has meant that the few shops that were in the village have closed, and worst of all, the local pub is under threat. Doubling Council Tax won't really hurt these people, but it could form part of a package of measures to fix a problem that is really hurting rural Britain.
We've seen the same in Cornwall as well - none of the locals can afford to buy, and the heart is being ripped out of the local communities.kers with their bonuses.These people have effectively bid up the prices of houses there to a level where locals can't afford to buy, the fact that houses are empty for large parts of the year has meant that the few shops that were in the village have closed, and worst of all, the local pub is under threat. Doubling Council Tax won't really hurt these people, but it could form part of a package of measures to fix a problem that is really hurting rural Britain.
Incredible Sulk said:
I think I'd support a doubling of Council Tax. My Dad lives in a little village in Devon. About three quarters of the houses in the village are second homes, bought by Investment wkers with their bonuses.
These people have effectively bid up the prices of houses there to a level where locals can't afford to buy, the fact that houses are empty for large parts of the year has meant that the few shops that were in the village have closed, and worst of all, the local pub is under threat. Doubling Council Tax won't really hurt these people, but it could form part of a package of measures to fix a problem that is really hurting rural Britain.
My village was the same. Mainly I don't see a problem with it. Large, cheaper, towns were nearby (Ivybridge, Kingsbridge, Plymouth) and are well within commuting distance. There are lots of places I would love to live, being born there doesn't give me a right to live there.kers with their bonuses.These people have effectively bid up the prices of houses there to a level where locals can't afford to buy, the fact that houses are empty for large parts of the year has meant that the few shops that were in the village have closed, and worst of all, the local pub is under threat. Doubling Council Tax won't really hurt these people, but it could form part of a package of measures to fix a problem that is really hurting rural Britain.
On the other hand the effect on the community is quite obvious at times and it's not nice to see businesses closing down as they need income throughout the year.
Incredible Sulk said:
I think I'd support a doubling of Council Tax. My Dad lives in a little village in Devon. About three quarters of the houses in the village are second homes, bought by Investment wkers with their bonuses.
These people have effectively bid up the prices of houses there to a level where locals can't afford to buy, the fact that houses are empty for large parts of the year has meant that the few shops that were in the village have closed, and worst of all, the local pub is under threat. Doubling Council Tax won't really hurt these people, but it could form part of a package of measures to fix a problem that is really hurting rural Britain.
Yes but surely it was the greedy locals who sold to these "Investment wkers with their bonuses.These people have effectively bid up the prices of houses there to a level where locals can't afford to buy, the fact that houses are empty for large parts of the year has meant that the few shops that were in the village have closed, and worst of all, the local pub is under threat. Doubling Council Tax won't really hurt these people, but it could form part of a package of measures to fix a problem that is really hurting rural Britain.
kers" in the first place? If the locals don't want prices to increase then they should only sell to other locals for no price increase compared to the last sale. It's local greed that causes the situation in the first place.On the subject of new taxes, one that should be applied immediately is the ceasing of being able to offset mortgage interest against rental income. That's always surprised me. A mortgage and it's costs are the responsibility of the property owner, so why should any relief be given? If any is given then the profit gained from the future sale should also be taxed (after captial gains).
Edited by Silver993tt on Monday 25th January 09:41
I can see how it could affect some local communities but surely there is a bigger point to consider here. Our freedom to do what WE want is slowly being taken away from us each time yet another rule is dreamt up.
If someone chooses to do what they want with THEIR money then why should it be outlawed? If the government want to ban second homes for the RIGHT reasons then ban them, don't use it as an excuse for another revenue stream. Why not raise VED for second cars (only a matter of time)? Where does it stop?
It is exactly the same as paying for parking, park in certain places without paying and it is illegal, you get nicked and shot at dawn. If however you pay to park there then the car becomes invisible, is no longer an issue or an obstruction.
It seems to me that every decision that has been taken by this government has come from the direction of getting more money out of us, the reasoning behind it has always been used as justification. If that money had been put to good use then at least as a result the UK would be up there with the best - it no longer is.
I have no idea how this country has fallen to the depths it has but IMO 99% of it has happened under Labour - coincidence?
If someone chooses to do what they want with THEIR money then why should it be outlawed? If the government want to ban second homes for the RIGHT reasons then ban them, don't use it as an excuse for another revenue stream. Why not raise VED for second cars (only a matter of time)? Where does it stop?
It is exactly the same as paying for parking, park in certain places without paying and it is illegal, you get nicked and shot at dawn. If however you pay to park there then the car becomes invisible, is no longer an issue or an obstruction.
It seems to me that every decision that has been taken by this government has come from the direction of getting more money out of us, the reasoning behind it has always been used as justification. If that money had been put to good use then at least as a result the UK would be up there with the best - it no longer is.
I have no idea how this country has fallen to the depths it has but IMO 99% of it has happened under Labour - coincidence?
I think the Irish have got the right idea with a flat 200euro charge for all second homes. With houses usually being rented out 200 isn't a lot of money and even if you're not renting out if you can afford a second home you can afford a little more.
The only problem or benefit, depending on how you look at it, is people have been going to pay the tax and then the authorities have then looked at their tax records and whether they have been paying tax on rental incomes, apparantly they have caught a few people out and then sent them massive bills.
The only problem or benefit, depending on how you look at it, is people have been going to pay the tax and then the authorities have then looked at their tax records and whether they have been paying tax on rental incomes, apparantly they have caught a few people out and then sent them massive bills.
Incredible Sulk said:
I think I'd support a doubling of Council Tax. My Dad lives in a little village in Devon. About three quarters of the houses in the village are second homes, bought by Investment wkers with their bonuses.
These people have effectively bid up the prices of houses there to a level where locals can't afford to buy, the fact that houses are empty for large parts of the year has meant that the few shops that were in the village have closed, and worst of all, the local pub is under threat. Doubling Council Tax won't really hurt these people, but it could form part of a package of measures to fix a problem that is really hurting rural Britain.
So. Years ago I hit age 18. I grew up in a very rural, idyllic part of North Wales. The economy was mostly farming, some tourism and the Nuclear Power station. Funnily enough I couldn't get a job locally. Mrs Thatcher said that we had to be flexible and become more mobile in order to find work. So I left, moved to the city and got a job.kers with their bonuses.These people have effectively bid up the prices of houses there to a level where locals can't afford to buy, the fact that houses are empty for large parts of the year has meant that the few shops that were in the village have closed, and worst of all, the local pub is under threat. Doubling Council Tax won't really hurt these people, but it could form part of a package of measures to fix a problem that is really hurting rural Britain.
I did well at that and was able to go to college - which helped me get a better job. Then I moved to London and worked for a consultancy and got some decent pay and finally I was able to start my own business.
Around the age of thirty I'd saved enough money that when the wife and I married we were able to put a deposit down on a house. In the expensive South East, too! A while after that my wife's career took off and we were able to afford a larger house.
Now, being a country lad, I'd much rather live in a country home in rural North Wales.
Just why the f
k shouldn't I buy one.Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff