Is there a tax for second homes (UK)?

Question

Just saw a welsh bloke on the news, saying that people buying second homes in rural communities is a real problem for people living in those communities - this drives up prices, and means people can't afford to live in their own towns any more.

Is there a tax payable on buying a second home? I know there's capital gains tax to pay when it's eventually sold, but there are ways around this.

Should there be such a tax? If it were up to me, I'd make the tax 100% of the value of the property - so that for every house bought as a second home, another one can be built to stop a few greedy people hogging all the houses. I can't really see how second homes make moral sense when there's a housing shortage.

Answer 1

The subject came up on the Wright Stuff this morning on five. One caller suggested adding VAT to 2nd home purchases as they were a luxury.

Answer 2

How would you make someone pay 100% tax just because they can afford to buy a second home ?!?!?!

What a stupid thing to say (speaking as someone who does NOT own a second home)

People have a right to buy what they wish with their own money, if its a second home and its available then so what.

How many politicians have 2, 3 or even 4 homes, bet they somehow avoid paying taxes on these, I bet from what you hear in the papers and news the taxpayer covers the cost of the renovations, its one rule for us, one for them.

I agree that if someone has a second home and they rent it out, that income should be taxed, but if someone has a second home for personal use why should they pay tax on that, when they have paid tax on their earnings already that was used to buy the property.

As for a housing shortage, where I live there are thousands of houses on the market that are not selling so no shortage here, you could say "affordable housing shortage", but who is to blame for that one ?

Answer 3

It won't happen because most MPs have 2nd & 3rd homes.

Answer 4

There definitely should be, In can be very tough on first time buyers and local people getting onto the property ladder as it is, let alone second time buyers. They should pay more!

Answer 5

Their friggen well should be.

Answer 6

How would you distinguish a second home, from a first home?  The buyer may just be having difficulty selling the other property.

It's a minefield, I tell you.

Answer 7

If there is a house price crash it would trigger a recession not seen since the early 90's. If you think that's a good price to pay then that's fine, but the consequences would hit everyone, not just second home owners.