Second home owners 'face extra tax burden'

Date: 26th October 2009

Second home owners could be hit by a tax hike in the upcoming pre-Budget report.

Around £20 million a year could be raised by the government through the abolition of tax breaks currently offered for those who rent out their properties, the Daily Mail reported.

Proposals for this change, which would affect over 60,000 homeowners, were first made public in April's Budget.

Speaking to the newspaper, a spokesman for taxation authority HM Revenue & Customs said: "We intend to publish draft legislation at the pre-Budget report and going forward [we] will continue to listen to views about the change."

The Tourism Alliance's Kurt Janson commented: "Some people will be looking at [the changes] and saying 'It's not worth my time and effort'."

He added: "This could be devastating for the tourism industry."

The public finances have recently deteriorated due to the financial pressures of the credit crunch and recession.

National deficits could rise by more than £175 billion this year - increasing the need for the government to either raise taxes or cut public spending.