Are taxes expected to increase in 2011 for second home owners?
If yes, by how much? If no, when is it expected to increase? Given the deficit I assuming second home owner taxes will be going up soon.
This is certainly an area that is under fire. The Capital Gains Tax rate for higher rate taxpayers has already been raised to 28% (from 18%) and a large gain could of course bring the vendor into the higher rate bracket during the year of sale. Council Tax deductions for empty properties/second homes is, I suspect, also likely to go - and it may be that local authorities will be able to set increased taxes for empty properties - a doubling in council tax has been mooted. This is only likely to be delayed, in my view, if unforeseen problems arise, so it could well happen this year.
The points above are areas that do not need major legislation. Any new tax could be even more divisive than the current government is prepared to accept, so I think such a tax would take some time to be created, if at all. A particular concern would be not to disadvantage some second-home owners by accident, as it were, where there are (for instance) work-related reasons why a second home is necessary. | 01.10.11 @ 20:01
There is only the rise in capital gains tax which is coming up, to my knowledge and will only affect you if you sell the property. For higher rate tax payers, this has increased to 28% and it is 18% for basic rate taxpayers, as David has mentioned.
Apart from that, there are no tax rises pending and there is no mention of this on the political rumour mill at this moment in time. | 01.10.11 @ 22:37