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Call to raise council tax on holiday homes

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Published Date: 08 May 2009
By Katrine Bussey
LOCAL authorities should be allowed to charge higher council tax rates on second homes and holiday houses, a committee of MSPs said yesterday.
Members of Holyrood's rural affairs and environment committee have been looking at rural housing.

Their report, published yesterday, highlighted that "much of rural Scotland faces a serious affordable housing problem".

Among their recommendatio
ns, the committee called on the Scottish Government to extend local authorities powers to vary council tax rates for second homes or holiday homes, to allow them to charge increased rate for these properties in areas where there is a serious housing shortage.

Since 2004 authorities have been allowed to discount the council tax rate on second homes by between 10 per cent and 50 per cent, rather than simply having a flat rate discount of 50 per cent.

That power was given on the condition that the cash raised from reducing the discount would be used to fund affordable housing in their area.

Most rural councils already apply a reduced discount, using the money to support affordable housing.

But last year Highland Council chiefs said councils should have the option of taxing second homes and holiday homes at up to 200 per cent of the council tax rate, arguing this could more than double the income from second homes and could fund more affordable housing.

Committee convener Maureen Watt said it was clear that "more needs to be done to give local authorities more powers to deal with pressures caused by a lack of rural housing in specific areas". She argued: "This includes the possibility of allowing them to increase council tax charges on second homes."

In the report the committee made it clear that "many more houses need to be built in rural Scotland, in small towns and villages and in the countryside".

But they complained there was an "over-cautious planning culture in much of rural Scotland" which meant there was a presumption against developments, including housing developments, in many areas.

The committee also urged councils to provide some more land for housing.





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  • Last Updated: 07 May 2009 7:41 PM
  • Source: The Scotsman
  • Location: Edinburgh
  • Related Topics: Council tax
 
1

,

07/05/2009 22:48:31
Comment Removed By Administrator
Reason:
2

Gregor Addison,

Glasgow 08/05/2009 00:16:07
#1 Doctor Death,

It's alright. They can't tax villas in Tuscany.
3

Gregor Addison,

Glasgow 08/05/2009 00:19:39
Really though - check out that Joana Lumley footage - she's definitely wearing an SNP badge:

http://news.bbc.co.uk/1/hi/uk_politics/8037181.stm
4

Gregor Addison,

Glasgow 08/05/2009 00:23:47
And while I'm at it, I can't not post the paper clip incident from First Minister's Questions:

http://news.bbc.co.uk/1/hi/scotland/8038394.stm
5

Jimmy Le Pie,

08/05/2009 00:39:21
#1 Dead Rufus,

Hi Rufus, why the change of moniker??

Things are not looking too clever for the comrades?

The expense claims should be the final nail in New Labour Sleaze and Corruption's coffin!

6

KampungHighlander,

Jakarta 08/05/2009 08:20:18
"last year Highland Council chiefs said councils should have the option of taxing second homes and holiday homes at up to 200 per cent of the council tax rate".

People would then just designate their highland property as their primary residence.

7

Luigiana,

Aberdeen 08/05/2009 08:26:38
Higher council tax on second homes?

Many politicians will be getting worried!
8

,

08/05/2009 08:43:16
Comment Removed By Administrator
Reason:
9

jane shore,

london 08/05/2009 09:05:34

Spagan (9) Highland council charge 90% of CT to 2nd home owners. That's only 10% difference. As Post 7 says Highland 2nd homes will just be designated main home.

London has the most designated 2nd homes in the UK, Because:-

1. 10% of London CT is greater than 10% of most 2nd homes.

2. People with 2nd homes are more likely to sell their rural 2nd homes first than the City one, no CGT that way.

The area of the Highlands I know best has more than a few empty houses awaiting around for buyer, some have been on the market for months. Locals cannot afford these houses because they have no jobs. What is the point in building affordable houses if the occupants are just going to live on benefits?

Perhaps the Highland council needs to look at job creation, Salmon Farms & Tourism are not enough. (Although of course 2nd home owners are beneficial to the second!!)
10

Alan B,

08/05/2009 10:20:36
The whole local tax system is a shambles.

Live somewhere pay council tax, get a job for a while somewhere else and you end up paying council tax twice with a small discount. We should not discouraging mobility in the workplace.
11

Allan(handofgod137),

08/05/2009 10:37:10
#8 No they wont, they'll just rip off the taxpayer as usual.
12

Iain's,

Barcelona 08/05/2009 10:43:33
Oh No! There are enough of us out here already!

13

zeitgeist,

08/05/2009 11:29:07
About time. When there are significant housing shortages in rural Scotland it is a disgrace that those wealthy enough to have not just one home, but two should not be paying more. It is morally wrong and on this basis alone, they should be paying 3-400% of the current council tax rates. Then again LIT would go a long way in making the whole system fairer.
14

Anndra Ailean,

08/05/2009 12:00:07
There should be no council tax freeze on holiday homes.
15

Mercutio,

FALKIRK 08/05/2009 20:03:12
#17 The left wing republican SNP which is normally muzzled by the party is beginning to bare its teeth.
16

BROONISDOOMED,

12/08/2009 09:53:27
it was reported in an english sunday paper,that labour plan,to tax conservatories,the view you have from your windows etc,they had already looked at 100,000 properties ,with the view to add this to the council tax
so your taxed on what you view,hills and majestic sweeping countryside,BANG your well hit
view of a junkie shooting gallery ,will that get you a rebate?
i just hope this is just a daft idea they looked at and are not implementing it as policy
well herr broon would be blootered with his views from his windows

 

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