Owners of second and empty homes on Suffolk coast to pay 100% council tax premium
It's part of efforts to tackle a shortage of housing in the district
A one hundred percent income tax premium will be applied to empty and second homes in East Suffolk if the government passes legislation.
Every member at East Suffolk Council’s full council meeting yesterday voted in favour of the proposal, which will come into effect next April if the Levelling Up and Regeneration Bill gets royal assent.
Cllr Maurice Cook, cabinet member for resources, said: “The council and its predecessors has lobbied for years on the high levels of second homes in the district and the issues associated with this.
“These problems include the impact on local housing supply and the loss of income to local authorities resulting in second homes being liable for business rates rather than council tax.
“Reducing the number of long-term empty properties has also long been a council priority.
“We currently charge the maximum council tax premiums on long term empty properties that are allowed under the current legislation.
“These recommendations are for additional council tax premiums. All existing premiums will remain in place.”
The Levelling Up and Regeneration Bill was published in May last year. As well as allowing the 100 percent council tax premium on empty and second homes, it would reduce the minimum period for a home to be empty before this is applied from two years to one year.
The papers brought to council included an outline of the rates of second homes across East Suffolk’s parishes. In three parishes, 30 to 40 percent of properties are second homes; in about ten the proportion is 20 to 30 percent and in about 19 the proportion is ten to 20 percent. For the remainder, the proportion is zero to ten percent.
Cllr David Beavan, leader of the Green, Liberal Democrat and Independent Group in the council, said: “People might well convert their second homes to businesses to avoid the extra tax.
“I hope the valuation office will share lists of registered businesses with HMRC so they can check if these have made an income and are legitimate.”
Cllr Cook explained measures will be put in place to ensure businesses that are not legitimate are identified and the homeowners pay the premium.
It is anticipated that the increase in income resulting from the premiums would be £717,000 for East Suffolk Council, £5.853 million for Suffolk County Council and £1.007 million for Suffolk’s Police and Crime Commissioner.