Government plans to stimulate property sales

31 October 2011

The government has reviewed council tax in a bid to reduce the number of empty properties in Britain.

The Guardian has reported that the government are proposing to amend council tax breaks for second home owners. The idea has been brought about to try to solve the potential housing crisis by reducing the number of empty homes in Britain in addition to raising funds from the more wealthy.

As it currently stands, second home owners are entitled to between 10 and 50% off council tax bills on a second property. Abolishing compulsory tax breaks will create millions in extra revenue per annum for the British government that has lost over £90,000,000 in council tax to second home owners since 2010.

The Guardian has also reported that other proposals are underway which include eradicating council tax discounts on empty homes that can be as high as 100% for the first six months a property is vacant. It has also been put forward that home owners will be required to pay 50% of council tax on any property left vacant for over two years.

The proposals have been designed to stimulate the property market by helping local people to get on the property ladder. Abolished tax breaks mean that those with one home will not be left subsidising the council tax bills of those that can afford a second home.

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