Second Home Council Tax Discount Could Be Scrapped

Pickles Considering Scrapping Council Tax Discount For Second Homes

Owners of second homes face losing council tax discounts as part of a shake-up to ease the pressure on hard-pressed families.

Ministers also want to give local authorities powers to axe discounts on empty properties - which can be up to 100%.

Communities Secretary Eric Pickles will announce a consultation on the plans on Monday.

He will also pledge to review rules under which tax inspectors treat "granny flats" as distinct properties, meaning families who house a relative in an annex face two separate council tax bills.

And councils will be encouraged to offer discounts to householders who pay bills online.

The Government believes the reforms, if implemented, will allow a cut in council tax bills for most people. Mr Pickles suggested the bill for a Band D property - £1,196 on average this year - could fall by £20.

His statement is expected to reaffirm that there are no plans for a total revaluation of all 21 million homes in England. Sources close to the minister said that effectively ruled out Liberal Democrat attempts to impose a "mansion tax" on owners of the highest-value properties.

Under the proposed reforms, local authorities would be given "flexibility" to reduce or remove entirely the current system of tax relief on second homes, many of which are kept as holiday lets.

Mr Pickles told the Sunday Telegraph: "Under Labour, council tax went through the roof. This Government has scrapped Labour's council tax revaluation and is helping freeze council tax for two years. I want to do more to help everyday families with their cost of living, and protect family homes from tax increases.

"By removing the subsidised tax breaks for empty homes and second homes, we can cut £20 a year off families' council tax bills by treating everyone equally and fairly. Councils should make it easier to pay bills, and offer the same discounts for electronic billing that other companies offer as standard - this will cut paperwork and help reduce tax bills."

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