News & Legal Updates
Sign up to news & legal updates
I have had a number of people talk to me about my recent blog “When is a Second Home Classed as a Second Home?” and the majority of them tend to agree with my views. The problem with the UK government’s proposal is that it is aimed at cooling an over-heating London market however, the changes to Stamp Duty have already slightly curtailed that market and, as we know, the majority of investors who are buying in London have extremely deep pockets and are therefore not particularly concerned about the extra charge. The Scottish government’s driver is slightly different but I still think it misses a great opportunity.
I personally think that all properties should exclude sole or main residence especially for the first five years. My proposal would be a change to the Capital Gains rules which would mean that if you sell a property, there should be a tax on the capital gain that is made between purchase and sale. I also think that there should be a tax imposed on second homes that are empty for more than a certain period of time. I know for instance in London a number of the investors simply buy properties, leave them empty for a number of years and then sell them on, benefitting from the increase in price and making a big capital gain. There should be a higher tax on the capital gain and there should also be a penalty for empty properties.
I would urge John Swinney to re-think his initial proposals which I genuinely think could have a devastating impact on the Scottish housing market.
As an aside, my review of 2015 and predictions for 2016 will follow in early January and I take this opportunity to wish all readers of the property blog a Merry Christmas and prosperous 2016.
Partner – Head of Property
The opinions expressed in this site are of the author(s) only and do not necessarily represent the opinions of Blackadders LLP.
Blackadders takes all reasonable steps to ensure that the content of this site is accurate and up to date. The site is not, however, intended as a substitute for seeking legal or other professional advice but rather as an informative guide to the services provided by Blackadders and topical legal developments. Site visitors should always seek advice tailored to their specific situation. Consequently, Blackadders accepts no responsibility for any loss or damage suffered by anyone acting or failing to act on the basis of information contained on this site. Downloading of material contained on this site is at the user’s own risk and all necessary virus checks must first be carried out by the user. Blackadders is not responsible for the material found on any web sites linked to this one and links to this site may only be made with Blackadders prior consent.
Blackadders owns the copyright in this blog and all material contained on it. The material on this site may be downloaded for personal use only and must not be altered. Otherwise, Blackadders’ written consent is required before any material on this site is reproduced, copied or transmitted in any way.
Information passed to us via this site is kept confidential and will not be disclosed to third parties except if authorised by you or required by law.
© Blackadders LLP 2011
Members of the Law Society of Scotland. Authorised to conduct Investment Business under the Financial Services & Markets Act 2000 by the Financial Services Authority.
Blackadders Solicitors is a trading name of Blackadders LLP, a limited liability partnership, registered in Scotland No SO301600 whose registered office is 30 & 34 Reform Street, Dundee, DD1 1RJ. Reference to a ‘partner’ is to a member of Blackadders LLP.Back to News & Legal updates