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Last Updated:  Wednesday, 9 April, 2003, 15:00 GMT 16:00 UK
Holiday home tax charges debated
Lake District
There are about 6,000 holiday homes in Cumbria
Abolishing council tax discounts for second home owners in the Lake District could generate more then �1.5m.

Councillors in South Lakeland were deciding on Wednesday whether to charge holiday home owners 90% of the full council tax rate.

At the moment, people only pay 50% on second homes, unless it is rented out for substantial periods.

But - following pressure from rural areas - the government agreed last year to allow district councils the discretion to charge 90% of the full rate.

The decision could raise �2.8m across Cumbria with most coming from South Lakeland.

Cash distributed

About 3,500 of Cumbria's 6,000 holiday homes are in the area.

However, there is uncertainty over how the extra cash will be divided.

The government has said it should be shared among the county council, district councils and police authorities.

This would mean that, despite collecting over half the extra revenue, South Lakeland could get just �200,000 of the �2.8m.

But councillor Kevin Lancaster, portfolio holder for resources, said the county council had indicated the money should be allocated in proportion to the number of second homes in each area.




SEE ALSO:
Higher tax 'welcome' in Cumbria
20 Nov 02  |  England
Second home tax break scrapped
19 Nov 02  |  Politics
Second homes face tax increase
23 Nov 01  |  England
Home, second home
06 Sep 01  |  UK News



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