Saturday, Apr 25, 2009
More surplus property on the market
Telegraph: Budget 2009: Blow for second homes
Holiday homeowners will no longer be able to write off “trading” losses from second homes against their tax bill, while capital allowances and capital gains benefits will also go. The only way to get around these tax changes is to sell the holiday home. “This could result in a rush to try to sell qualifying properties before 5 April 2010 and the resulting surplus of properties for sale could delay any recovery in the housing market in seaside towns around the UK,” said Richard Mannion, tax partner at Smith & Williamson.
Posted by mytimeisnigh @ 08:11 AM (704 views) Add Comment
6 Comments
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1. richc said...
This article really sums up just what is wrong with NuLabour's vision for the economy -- second home owners granted "entrepreneurs'" tax relief, with capital gains of up to £1,000,000 on second homes attracting a lower rate of CGT.
Property speculators are not entrepreneurs. This is absurd.
2. montesquieu said...
70 days minimum let means it has to be set up in a fairly serious way, and genuinely rented out. I doubt it will have all that great and impact, the ones making money will probably stick with it and there aren't probably all that many anyway.
3. will said...
Inland Revenue and local authorities will already be aware which properties have been rented out. Many caught out by the changes may deny that it applies to them, but that is tax evasion and will lead to sleepless nights.
The Government are closing in on the alternative pension schemes at last.
4. Happy Renting said...
What this shows is that NuLabour can never be trusted to stick to their policies. They will entice people with populist tax breaks, and after a few years, NuLabour pulls the rug from beneath their feet.
This happens time and again with NuLabour.
5. On The Edge said...
this is Alice through the looking glass.... 180˚ perspective shift from where I'm standing. There is great hope in St Ives that hundreds of misappropriated residential properties come back into use as full time family homes. The piffling amount that second homers think they contribute to the local economy is a drop in the ocean to the contribution that a full time family living here makes to the community.
6. a saver said...
"This could result in a rush to try to sell qualifying properties before 5 April 2010 and the resulting surplus of properties for sale could delay any recovery in the housing market in seaside towns around the UK,”
Fantastic news, maybe these offloaded properties can lead the way down, allowing local people previously priced out to buy.
Maybe the gov is not so anti-HPC after all. Of course they should never have given all these tax breaks in the first place. There is definitely a need for an alternative pension scheme but anything that is likely to cause runaway HPI is just not suitable -it's lucky that the gov did not go ahead with their put-a-house or two-in-your-SIPP scheme because that would have been disastrous.