MIKE HEDGES ASKS FIRT MINISTER TO CLOSE COUNCIL TAX LOOP HOLE

MIKE HEDGES ASKS FIRT MINISTER TO CLOSE COUNCIL TAX LOOP HOLE

Speaking after First Minister’s Questions, Mike Hedges said… ‘I think that some people can play the system to avoid paying the premium on Council Tax for 2nd Homes. I asked that loopholes be closed. We must make it as difficult as possible for people to avoid paying what Local Authorities are entitled to levy on 2nd Homes.’
Mike Hedges AM – Will the Welsh Government legislate to ensure that all properties built or adapted for housing have to pay council tax based upon the band they’re in and any second home premium charged by the local authority, or that the business rate relief for rented out properties is abolished? Because I think this is a loophole: it has to be available for 140 days; it is quite easy to make something available for 140 days, and get round it. It has to be let out for 70 days, whether renting out to family counts, which a lot of people do, in that you collect more rent, but they let family members use it, and therefore that builds up to the 70 days. So, will the Government look at taking either of those two actions, to ensure that local authorities get the money they deserve?16

First Minister of Wales
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We’ve legislated to allow local authorities to charge council tax premiums on second homes. As I said in the answer earlier, it’s the responsibility of the Valuation Office Agency—independently of the Government—to determine the status of each property in Wales. As I said, those second home owners who try to game the system could find themselves facing very large backdated bills for council tax. But, again, I refer to the answer I gave earlier, where a review is being conducted, to examine the scale of the problem in different parts of Wales.

 

 



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Author: Mike Hedges MS
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