Treasury proposal to cut tax on the sale of second homes could derail policies aimed at increasing the supply of affordable housing in rural Wales, it is feared.
The Welsh Assembly Government is now trying to stop Chancellor Alistair Darling’s plans, which would see capital gains tax liability on proceeds from selling second homes fall to a flat rate of 18%.
Currently, the proceeds are taxed at between 24% and 40%, depending on how long the home has been owned….
…Selwyn Jones of Cymdeithas yr Iaith Gymraeg, the Welsh Language Society, said, “This proposal, rather than helping to rectify the over inflated housing market which doesn’t reflect local wages or make it easier for first time buyers to gain access to the existing housing, will actually make the situation worse.“It clearly shows that the policy is for the housing stock to be seen as an investment opportunity rather than a place for people to live at a cost they can afford.
“We call for a Property Act to ensure that local people have priority in gaining access to homes within their community at a cost which reflects local wages.”