Labour is set to launch a tax raid in one part of the UK as homeowners face a £2,000 bill.
The move affects people in Wales, who could be forced to pay the extra amount as the government aims to curb the number of second homes in the country.
Stamp duty is set to be increased as part of the draft Budget for next year, The Telegraph reports.
Wales’ former first minister, Mark Drakeford, who is now the Welsh cabinet secretary for finance, announced a one percentage point rise in Land Transaction Tax on additional properties.
If this goes ahead, it will take effect from Wednesday.
Speaking in the Senedd on Tuesday (December 11), Mr Drakeford claimed that the policy would raise £7million for public services in 2025-2026.
Now, if this latest legislation passes, landlords would see their payments jump £9,750 to £11,890 on a £214,000 property – the average according to the UK’s house price index.
On a £500,000 house, meanwhile, the amount would increase from £5,000 to £42,450.
It comes after the Welsh government introduced new rules for second homeowners on April 1, 2023.
Law firm Allington Hughes says these were “designed to encourage owners of second homes to let their properties for at least 182 days per year”.
The law meant that if a second home was not let for the minimum duration, the owner could be forced to pay up to 300 percent extra in council tax.
The firm added: “There are potential consequences to these new rules. Many second homeowners may try to sell their properties to avoid the increase in council tax.
“Since many of these properties are in popular coastal areas, they may sell for high prices, making them unaffordable for first-time buyers. If these properties are not purchased by the wealthiest buyers, who can afford the high council tax, there may be a large number of properties on the market lying vacant.
“Moreover, the new rules may lead to job losses for those in the holiday let industry, such as cleaners and maintenance workers. Additionally, individuals and businesses that benefit from tourism may also be affected.”
The BBC reported in September that the number of second homes for sale in Pembrokeshire has trebled since council tax was increased by 200%.
