CAPITAL GAINS TAX, SECOND HOMES AND THE 2008 BUDGET

That this House notes with concern that the 2007 Budget announced plans to reduce capital gains tax on the sale of second homes to 18 per cent.; further notes that the new tax rate is due to come into force in April; welcomes the decision by the Prime Minister to establish an inquiry into the rural housing crisis; notes with interest the comments of the author of the review, the hon. Member for Truro and St Austell, that local planning authorities should have the power to prevent the purchase of second homes in areas of high housing pressure; further welcomes the comments of the Government's rural affairs adviser that the proposed reduction in capital gains tax on second homes will worsen rural poverty and make property unaffordable; and calls for the Government to scrap its reduction in capital gains tax on second homes in the 2008 budget.