South Hams District Council in Devon has decided to knock 40% off the 50% Council Tax discount allowed on second homes.
According to the Council, people purchasing second homes with a discount on Council Tax were keeping locals from purchasing the properties as their main residences. They believe they have some of the worst housing problems in the country and that the second homes discount was an unfair loophole.
Our View
The Local Government Act 2003 allows Councils to cut the discounts for Council Tax on second homes.
Now, second property owners in South Hams only receive 10% off the normal bill, rather than 50% before the cut.
South Hams apparently believes that the discount cut will generate around £2 million which will be spent on affordable housing for locals. This will be welcome for locals and we see no reason why people with second homes should be entitled to a Council Tax discount.
If you own and use two properties then the services required will be doubled. Many people rent out their second properties with the tenants paying the Council Tax.
If this is the case, those people will not be affected.
Free Fact Sheet - Capital Gains Tax on Second Homes (Registered users)
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