UK stealth tax hits second home owners
The Pre-Budget Report is expected to hit property owners, who let their second homes out, with a stealth tax when details are announced later this month.
UK Chancellor Alistair Darling is preparing draft legislation that will hit thousands of second home owners who currently enjoy tax benefits and reduced income tax offset against furnishings etc. when renting out furnished property for at least 70 days per year.
The Treasury first proposed taxation adjustments in this year's budget. The changes are expected to hit around 60,000 owners around the UK with the worst hit areas being found in the Lake District and the West Country.
Opposition is clear as more than 90 MP's across all paties have signed a motion calling for discussions on the tax changes believing there would be huge damage to the UK tourist trade with a loss of jobs and damage to rural UK and seaside economies following the introduction of such measures.
The Government has said that the current system breaches European law.