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Wales - Tax hike on second homes announced


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For too many years second home owners have been taking over in Wales and pushing prices up way beyond locals reach. So its good to see the tax collector come after them.

I was surprised to see this is being introduced from tomorrow. This could come as a bit of a shock to those currently in the process of buying. But if they can afford a 2nd home, then they can afford a bit of extra tax, can't they?

Wil the rest of the UK go for an easy tax grab from second home owners? Hope so.

https://www.bbc.co.uk/news/uk-wales-politics-55387707

Welsh budget: Tax hike on second homes announced

There will be a tax hike on second homes in Wales to help raise £13m for social housing, it has been announced.

The move is part of the Welsh Government's budget for 2021-22.

The changes to land transaction tax - the Welsh version of stamp duty - come in to force from Tuesday.

It will see second home-owners paying a 4% levy on properties up to £180,000, rising to 16% for homes worth at least £1.6m.

 

 

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Wales also didn't allow landlords and 2nd home owners to benefit from the current removal of stamp duty, meaning only owner occupiers are currently exempt. 

IIRC they also removed tenant fees before England. 

Hopefully this adds some pressure to the UK government to do the same in England. 

 

If they've already bought they escape this though

Perhaps - but the pool of willing and able buyers for when they decide to sell just got smaller!

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Perhaps - but the pool of willing and able buyers for when they decide to sell just got smaller!

very good point!
im sure some of the locals hoping to sell to Londoners at London prices are pretty upset. 

Devon and Cornwall should do the same 

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Wales also didn't allow landlords and 2nd home owners to benefit from the current removal of stamp duty, meaning only owner occupiers are currently exempt. 

IIRC they also removed tenant fees before England. 

Hopefully this adds some pressure to the UK government to do the same in England. 

Perhaps - but the pool of willing and able buyers for when they decide to sell just got smaller!

Yes I believe Wales did remove them first.

Wales also introduced the compulsory register for all landlords some time ago. Can't understand why all of England has not introduced it, with this register providing an easy way for HMRC to chase 2nd home owners who don't declare their rental income?  

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Excess over owner occupier properties have always been a sitting duck for tax collection......tax assets or income and spending?.......income and spending taxed enough imo.......tax people too much they stop working and stop spending, so sit back earning an income doing nothing, making money from the assets they hold often purchased with cheap debt.....dividend, trust and rents they arrange to collect upon.;)

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Not very bright.

Theyve not thought it thru or looked at the data. Housing rarely turns over.

They need have a much higher ctax levied on 2nd homes. They also need to remove small business rate relief from furnished holiday let's.

These will raise far much more money and be fairer to the residents.

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Excess over owner occupier properties have always been a sitting duck for tax collection......tax assets or income and spending?.......income and spending taxed enough imo.......tax people too much they stop working and stop spending, so sit back earning an income doing nothing, making money from the assets they hold often purchased with cheap debt.....dividend, trust and rents they arrange to collect upon.;)

Yep.

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The correct solution would be to just build more houses.

 

I do agree, there will be some people supporting this, and then get an unpleasant shock when they have to sell Granddad's cute cottage, which they thought was going to be a goldmine to someone on "local" wages (to be fair 4% isn't the end of the world, but it's gives an idea on the direction of travel)

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Not very bright.

Theyve not thought it thru or looked at the data. Housing rarely turns over.

They need have a much higher ctax levied on 2nd homes. They also need to remove small business rate relief from furnished holiday let's.

These will raise far much more money and be fairer to the residents.

2nd homes fair game, they hollow out whole areas. But with business rates relief being removed on holiday lets - I'm not sure the locals would love all the holiday lets coming to the market, crashing their local housing market and removing the tourism component of their local economy. Tourism is a huge component of these areas' economies. 

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2nd homes fair game, they hollow out whole areas. But with business rates relief being removed on holiday lets - I'm not sure the locals would love all the holiday lets coming to the market, crashing their local housing market and removing the tourism component of their local economy. Tourism is a huge component of these areas' economies. 

Tourism is a blight in the UK.

Holiday let's are like a worse version of io btl slumlording.

They should require planning.

They need taxing at 3-4× ctax equivalent.

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Should be an annual 4% levy on the value - like they would apply in the US or France.

You can afford multiple homes - well you can afford the tax - many Brits have no home at all including veterans who risked their lives for this country.

Cant argue with that great post, unfortunately with most of our MPs and Lords owning 2nd homes and more if the truths known, so it wont happen unfortunately even though its a very fair suggestion.

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Not very bright.

Theyve not thought it thru or looked at the data. Housing rarely turns over.

They need have a much higher ctax levied on 2nd homes. They also need to remove small business rate relief from furnished holiday let's.

These will raise far much more money and be fairer to the residents.

Ctax point totally - furnished holiday lets are a business in some cases though bit trickier and tourism is a big part of the Welsh economy 

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It makes sense to tax second homes and there will be more “Luxury” taxes in my opinion.  All this funny money floating around needs to be controlled and it’s like pouring fertiliser on the garden and then pruning back the growth.  Point is they will tax to control inflation and recoup money to pay debt.  

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Found it funny now that Wales introduced the tax, second home buyers moaning, solicitors moaning that they are not ready. 

good on the Welsh, when can we see the same in other parts of the UK? Like Cornwall? The Peak District? etc 

having a second for ‘funzies’ during a housing crisis is pretty horrible. physically you can’t be in both places at once. 

 

Edited by jiltedjen
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Tourism is a blight in the UK.

Holiday let's are like a worse version of io btl slumlording.

They should require planning.

They need taxing at 3-4× ctax equivalent.

 

 

Furnished holiday lets make up 10% of the UK economy.......

Wow.

 

No, tourism is. Not sure how easy it would be to strip out exactly how much is generated by furnished lets but your blanket dismissal of tourism as a blight on the UK is to ignore the massive economic benefits it brings. 

Point still stands - kill of holiday lets and you'd shank vast swatches of the UK tourism industry. Pockets of Cornwall are hugely dependent on holiday lets. Second homes on the other hand hollow out communities. 

Houses would be cheaper but the locals would be unemployed... nice one. 

I do not agree that a holidays lets are worse than IO BTL slum lording. Holidays are optional but requiring a place to live is not. You can easily avoid a holiday let and stay in a hotel, or camp, or not have a holiday but for many there's no way to avoid a slumlord. 

Further, most holiday lets aim to be fully occupied providing a constant stream of tourists into the local economy, jobs for property maintenance, cleaners etc and they generate a taxable income. 

Why do you hate tourism? Have you never taken a holiday?

:) 

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