Proposed UK ‘second home tax’ not aimed at overseas property owners

overseas property owners
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EXCLUSIVE: The leader of Britain’s opposition political party sparked concerns among some U.K. overseas property owners during a keynote speech at his party’s conference on Wednesday.

Jeremy Corbyn (pictured), the leader of the Labour party, said his party would look to impose a tax for owners of second homes in the U.K. if it were elected to power.

Speaking at the annual conference in the north west city of Liverpool, Corbyn said: “… we will put a levy on those with second homes. Think of it as a solidarity fund for those with two homes to help those without any home at all.”

ThailandProperty.News can exclusively reveal that overseas property owners of U.K. property, as well as British expats with homes in the U.K. and their main residence elsewhere, are unlikely to be affected by any new tax, if and when it is introduced.

The policy advisor for Labour’s shadow Housing Minister John Healey, James Hall, told ThailandProperty.News: “This would only apply to second homes used as holiday homes in England, so people normally resident in England with a second home overseas would not be affected.”

Hall added” The levy does not apply to properties that are rented and occupied.

He confirmed that tax will be aimed only at properties that are primarily used as holiday homes for personal use, and which remain furnished but mostly unoccupied.

While Corbyn’s initial statement to conference did not make the situation regarding overseas property owners of U.K. properties clear, this subsequent clarification can only been good news for buyers and investors of U.K. property.

The contentious issue of Brexit that will see the United Kingdom leaving the European Union next March, is still weighing heavy on the minds of anyone with U.K. property interests or aspirations.

Andrew Batt
The author of this article is Andrew Batt, the founder and editor of Andrew has been writing about property and real estate issues in Thailand and Southeast Asia for more than 10 years. He has worked for PropertyGuru Group, DDproperty, Dot Property Group, Hipflat and AsiaRents. He has also produced content for leading Thailand property developers and real estate agencies.

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