Farron fears second homes bonanza after Chancellor's Pre Budget pledge

3.00.00pm BST (GMT +0100) Fri 12th Oct 2007

Local MP, Tim Farron has expressed his dismay today at the Chancellor lowering the rate of Capital Gains Tax from 40% to 18%, which could lead to yet more investment in property as second homes in the area. Mr Farron, who earlier in the week had issued a demand to the Chancellor that something be done to curb second home ownership was astonished at the revelation.

From April, anyone selling a property other than their primary residence will only have to pay 18% in CGT, whereas the minimum used to be 24%, with a maximum of 40%.

Tim Farron said:

"Instead of attempting to discourage excessive second home ownership, which has a detrimental effect on many of our communities, the Chancellor's decision could result in yet more second homes being purchased.

"This enormous tax break is a real blow, young people in the area are struggling to get on the property ladder and this announcement will do nothing whatsoever to cure that problem."