Extra Tax For Second-Home Owners

The government is considering introducing an 'absentee' tax on second home owners to combat holiday properties - often left empty for most of the year - and which push up house prices.

The new level of tax, being considered by government agency the Commission for Rural Communities, would affect the 300,000 families thought to own second homes across Britain and who leave them empty for more than six to eight months of the year.

In areas of holiday home ownership – such as Cornwall, Devon, Lake District, Peak District, Yorkshire Dales and Norfolk – house prices have been sent soaring out of the reach of locals and some villages are left deserted off-season.

Advisers suggest doubling or tripling council tax bills leading to £3,500 a year for some owners or introducing a new business tax on second homes to try and preserve rural communities.

Another suggestion includes creating a national register of second homes to ensure no-one with more than one home can dodge paying the 40 per cent capital gains tax on their second property.

Critics of plans have argued that although prices have risen, economies of rural areas have benefited substantially from tourism with second-home owners more likely to use local shops, eat out and support local businesses.