Pent Up Posted June 21, 2010 Share Posted June 21, 2010 just heard briefly on the radio that the budget will contain plans for tax on empty homes which would raise £4bn. Any know of the details of this? Not noticed it discussed here before. If true this could add to the cgt (hopefully) firesale. Quote Link to comment Share on other sites More sharing options...
pilchardthecat Posted June 21, 2010 Share Posted June 21, 2010 just heard briefly on the radio that the budget will contain plans for tax on empty homes which would raise £4bn. Any know of the details of this? Not noticed it discussed here before. If true this could add to the cgt (hopefully) firesale. Youtube doesn't appear to contain a video of Ronnie Raygun's "you can run, but you can't hide" quote, which is a shame Quote Link to comment Share on other sites More sharing options...
Lennon Posted June 21, 2010 Share Posted June 21, 2010 Great news if true - would really like to see any details on this if true - what's the definition of empty, etc. Of course it might just be the removal of the Council tax discount for non-primary residence, but even that would be a good start... Quote Link to comment Share on other sites More sharing options...
Pent Up Posted June 21, 2010 Author Share Posted June 21, 2010 Great news if true - would really like to see any details on this if true - what's the definition of empty, etc. Of course it might just be the removal of the Council tax discount for non-primary residence, but even that would be a good start... Yeah I would like some confirmation. I heard them running through a few things to be announced tomorrow and they said 'a tax on empty homes raising £4bn' I'll try and get it on listen again. It was on BBC radio two. I think during the 3 o'clock news. Quote Link to comment Share on other sites More sharing options...
Pauly_Boy Posted June 21, 2010 Share Posted June 21, 2010 just heard briefly on the radio that the budget will contain plans for tax on empty homes which would raise £4bn. Any know of the details of this? Not noticed it discussed here before. If true this could add to the cgt (hopefully) firesale. Fantastic news if it's true, i'm really looking forward to this budget tomorrow! Quote Link to comment Share on other sites More sharing options...
the flying pig Posted June 21, 2010 Share Posted June 21, 2010 I don't really believe that this would be 'sneaked through' with no warning? £4bn is fairly serious cash... assuming a million empty homes that would be £4k per home per empty home, i.e. a really big deal to the owners affected? I would laugh if true though. Empty homes are such a terrible waste. If one assumes that the value in use p.a. of a home is equal to, say, 5% of its market value, then a million empty homes would create a pure waste of [assuming a market value of 200 grand per home] some £10bn a year... Quote Link to comment Share on other sites More sharing options...
Realistbear Posted June 21, 2010 Share Posted June 21, 2010 just heard briefly on the radio that the budget will contain plans for tax on empty homes which would raise £4bn. Any know of the details of this? Not noticed it discussed here before. If true this could add to the cgt (hopefully) firesale. OOOOOOOOOOOOooooooooooooo please mister!!!!!!!!!!!!!!!!!!!! Quote Link to comment Share on other sites More sharing options...
RufflesTheGuineaPig Posted June 21, 2010 Share Posted June 21, 2010 £4bn is fairly serious cash... assuming a million empty homes that would be £4k per home per empty home, i.e. a really big deal to the owners affected? It sounds unlikely if you just include "empty" homes. Second homes and "holiday rentals" probably aren't included in that 1 million, so in fact if you add all those in, it could be possible. Quote Link to comment Share on other sites More sharing options...
the flying pig Posted June 21, 2010 Share Posted June 21, 2010 It sounds unlikely if you just include "empty" homes. Second homes and "holiday rentals" probably aren't included in that 1 million, so in fact if you add all those in, it could be possible. A couple-of-grand-a-year levy on mostly empty second/holiday homes would be too beautiful for words. I just don't see it in this budget though. The news would have leaked and the squeals would have been audible from Mars. Quote Link to comment Share on other sites More sharing options...
winkie Posted June 21, 2010 Share Posted June 21, 2010 It has been known that the roof is then removed. Quote Link to comment Share on other sites More sharing options...
DaisyB Posted June 21, 2010 Share Posted June 21, 2010 Removing the discount for second homes would raise about £150 million (Indy Article assuming 224,000 second homes and an average council tax of £1400 (i.e. currently paying £700 at the discounted rate). Quote Link to comment Share on other sites More sharing options...
Fromage Frais Posted June 21, 2010 Share Posted June 21, 2010 Excellent idea If you want to speculate with a resource you have to contribute to society for taking it out of circulation. We either have a property crisis or we do not? Quote Link to comment Share on other sites More sharing options...
Papa Serf Posted June 21, 2010 Share Posted June 21, 2010 (edited) I don't really believe that this would be 'sneaked through' with no warning? £4bn is fairly serious cash... assuming a million empty homes that would be £4k per home per empty home, i.e. a really big deal to the owners affected? I would laugh if true though. Empty homes are such a terrible waste. If one assumes that the value in use p.a. of a home is equal to, say, 5% of its market value, then a million empty homes would create a pure waste of [assuming a market value of 200 grand per home] some £10bn a year... Tax empty homes would force many to be sold, thus getting CGT. The CGT could be substantial Edited June 21, 2010 by Papa Serf Quote Link to comment Share on other sites More sharing options...
tim123 Posted June 21, 2010 Share Posted June 21, 2010 Removing the discount for second homes would raise about £150 million (Indy Article assuming 224,000 second homes and an average council tax of £1400 (i.e. currently paying £700 at the discounted rate). The problem is there is probably a much larger number of people who, due to work commitments, have a second home that is RENTED. It is awfully unfair to take the 50% discount away from them, but you can't positively discriminate in this case. tim Quote Link to comment Share on other sites More sharing options...
Guest sillybear2 Posted June 21, 2010 Share Posted June 21, 2010 just heard briefly on the radio that the budget will contain plans for tax on empty homes which would raise £4bn. Any know of the details of this? Not noticed it discussed here before. If true this could add to the cgt (hopefully) firesale. They'll probably just abolish the 50% council tax discount for empty/second homes. Quote Link to comment Share on other sites More sharing options...
the flying pig Posted June 21, 2010 Share Posted June 21, 2010 (edited) They'll probably just abolish the 50% council tax discount for empty/second homes. plausible i suppose. this would be an excellent idea. whilst reasons for the discount [principally that a second homeowner imposes fewer costs on a council than a year-round occupant by not needing their bins emptied as often & so on] are grounded in at least some common sense [unlike the literally unfathomable mortgage interest tax relief for BTL], it does seem 'unfair' that second homeowners don't, in a sense, fully pay their way within a community... i could imagine a lot of first-wave boomers born in the 40s & 50s with nice little [almost perpetually empty] seaside cottages & flats being extremely displeased by such a measure Edited June 21, 2010 by the flying pig Quote Link to comment Share on other sites More sharing options...
Johnny Storm Posted June 21, 2010 Share Posted June 21, 2010 £4bn is fairly serious cash... assuming a million empty homes that would be £4k per home per empty home, i.e. a really big deal to the owners affected? It seems to be that they are going to be very keen on taxing things that people can just avoid by not admitting to it. How are they going to tell houses are empty exactly? Is this the Liberals influence coming through? Quote Link to comment Share on other sites More sharing options...
Guest sillybear2 Posted June 21, 2010 Share Posted June 21, 2010 plausible i suppose. this would be an excellent idea. whilst reasons for the discount [principally that a second homeowner imposes fewer costs on a council than a year-round occupant by not needing their bins emptied as often & so on] are grounded in at least some common sense [unlike the literally unfathomable mortgage interest tax relief for BTL], it does seem 'unfair' that second homeowners don't, in a sense, fully pay their way within a community... i could imagine a lot of first-wave boomers born in the 40s & 50s with nice little [almost perpetually empty] seaside cottages & flats being extremely displeased by such a measure Which is precisely why it probably won't ever happen, I believe it when I see it. Quote Link to comment Share on other sites More sharing options...
the flying pig Posted June 21, 2010 Share Posted June 21, 2010 (edited) It seems to be that they are going to be very keen on taxing things that people can just avoid by not admitting to it. How are they going to tell houses are empty exactly? Is this the Liberals influence coming through? well, the abolition of the second home council tax discount as suggested earlier on the thread would do it very neatly... it wuold even save some money on staff processing applications for discounts... the rule would simply be that all houses attract full council tax... just impossible to get out of. Edited June 21, 2010 by the flying pig Quote Link to comment Share on other sites More sharing options...
the flying pig Posted June 21, 2010 Share Posted June 21, 2010 Which is precisely why it probably won't ever happen, I believe it when I see it. i agree with you. Quote Link to comment Share on other sites More sharing options...
Johnny Storm Posted June 21, 2010 Share Posted June 21, 2010 (edited) well, the abolition of the second home council tax discount as suggested earlier on the thread would do it very neatly... it wuold even save some money on staff processing applications for discounts... the rule would simply be that all houses attract full council tax... just impossible to get out of. Somebody already said it would only raise "about £150 million" so it cant be that. If you can afford a second home a extra few hundred quid a year isnt going to bother you too much. Now £4k a year might be more annoying, but again how are they going to know. Edited June 21, 2010 by Johnny Storm Quote Link to comment Share on other sites More sharing options...
Johnny Storm Posted June 21, 2010 Share Posted June 21, 2010 Never really understood the reason for 50% council tax discount on second homes. If you can afford a second home then you can afford the tax and it simplifies the tax collect so reducing the admin cost of the tax.... I would imagine its something to do with not actually using the services the tax pays for? A radical idea I know. Quote Link to comment Share on other sites More sharing options...
Guest sillybear2 Posted June 21, 2010 Share Posted June 21, 2010 Never really understood the reason for 50% council tax discount on second homes. If you can afford a second home then you can afford the tax and it simplifies the tax collect so reducing the admin cost of the tax.... It also undermines the tax base and drives up the per household costs for genuine residents living in an area, a lot of expenses are fixed costs, street lighting and road repairs still have to be carried out regardless if a given home is empty or not, same for running a dustbin lorry down a street every week. Quote Link to comment Share on other sites More sharing options...
South Lorne Posted June 21, 2010 Share Posted June 21, 2010 Never really understood the reason for 50% council tax discount on second homes. If you can afford a second home then you can afford the tax and it simplifies the tax collect so reducing the admin cost of the tax.... ...VIs passed the law...wonder which Government...?.... Quote Link to comment Share on other sites More sharing options...
SarahBell Posted June 21, 2010 Share Posted June 21, 2010 I would imagine its something to do with not actually using the services the tax pays for? A radical idea I know. Empty homes create more demand for the services. Ok they don't use the library and schools but they need more police and fire brigade time. Quote Link to comment Share on other sites More sharing options...
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