Brown urged to ditch homeowners CGT cut

Cutting capital gains tax on second homes will worsen the housing crisis in
the countryside, the Prime Minister’s adviser on rural affairs warned today.

Stuart
Burgess, the Government’s Rural Advocate, told
the
Times he believes the Chancellor Gordon Brown should cancel the CGT
reduction which is due to come into force next month.

He says the move will cause a frenzy of speculation as owners of second homes
– many of them MPs – will rush to capitalise on the cut, making it even more
difficult for first-time buyers and young families to get on the property
ladder.

The move for lower taxes is curious, says the Times, as a separate review is
examining whether councils in beauty spots should be able to prevent houses
being sold as second or holiday homes.

If the tax cut goes ahead, second-home owners will pay just 18% on the sale
of their homes instead of the standard 40% rate.

Further reading:

The
Times article

Stuart
Burgess