5 December 2005
Barrett welcomes 11th hour climbdown on tax-breaks for second homes
John Barrett, Liberal Democrat MP for Edinburgh West, has this afternoon welcomed the Chancellor’s announcement that, following 2 years of campaigning by Lib Dem MPs, second homes will be excluded from Self-Invested Personal Pensions.
Under previous plans for Self-Invested Personal Pensions, high-earners would have been able to cash in on an effective 40 per cent "discount" on second homes. Higher-rate taxpayers would have been allowed to set the cost of these properties against their tax bills.
In a statement, John Barrett said:
“The Chancellor has left it to the last minute, but at last he has seen sense by preventing second homes being purchased with Self-Invested Personal Pensions.
“ Edinburgh already has the highest house prices in Scotland. These plans would have made it even harder for first time buyers to get that all important first foothold on the property ladder.
“The idea that the government should give tax breaks for second home ownership always was absurd. I am pleased that the Chancellor has finally seen the light on this issue, and done away with this loophole.”