UK to Abolish Holiday Home Tax Breaks to Tackle Housing Shortage
- Chancellor made series of pledges designed to increase supply
- Changes were announced in Jeremy Hunt’s Spring Budget
Houses in Cornwall, UK.
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
UK Chancellor Jeremy Hunt has pulled a series of levers designed to encourage fewer investors to buy holiday homes and existing owners to sell as residents in the country’s tourist hot spots struggle to buy their own properties.
Hunt delivered a range of pledges at the House of Commons on Wednesday, including scrapping the furnished holiday lettings regime that gave tax breaks to people renting second homes out on a short-term basis. The chancellor also pledged to reduce the higher rate of capital gains tax to 24% from 28% on residential sales in a bid to encourage existing holiday home owners to sell, freeing up more stock for local buyers.