Second home premium tax legal action dropped over risks

Gwynedd has more holiday homes than anywhere else in Wales

Plans to launch a legal challenge to higher council taxes on second homes in part of Wales have been ditched by campaigners.

A group had raised £8,000 towards their bid, claiming Gwynedd council was being "discriminatory and unfair".

A 100% council tax premium was introduced as second-home ownership surged across the county - with more in Gwynedd than any other part of Wales.

The campaigners cited "potential pitfalls" of losing the challenge.

In a message to those who had supported the bid, the group said risks "outweigh the chances of success and we do not propose to take the matter further as a group".

They had accused Gwynedd council of "indirect discrimination", as the largest proportion of those affected by the rule on second homes were English.

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The hike in tax was introduced in March, amid growing concerns that more than one in 10 homes in the county were now second homes.

Those against the move said their prospect of getting a judicial review was at between 50 and 60% - but with a risk of incurring "substantial legal costs" in court.

Even the beach huts in the village of Abersoch are hot property, with one selling for £153,000 in 2016

The organisers behind the legal bid and a petition said many second home owners were in the process of taking measures to avoid paying the increased charges.

It included making their homes officially a business, for letting as holidays, and so attracting business rates rather than council tax, with many eligible for business rate rebates.

Others are naming their properties as their primary residence, while others have taken the decision to sell up.

While the proposed class action will jot be taken any further, the organisers suggested individuals unhappy with council taxes doubling should write to Gwynedd Council, before applying to the Valuation Tribunal Wales to challenge Gwynedd council's decision.

"Recent research shows that 60% of Gwynedd residents are priced out of the housing market," said a Gwynedd council spokesperson.

"At the same time, Gwynedd has the highest percentage of second homes in Wales and is amongst the highest in terms of long-term empty properties. The council was given specific powers by the Senedd to set a premium of up to 100% on the council tax in relation to both these types of properties."

The barrister who has been advising the group told Newyddion S4C he could not comment, as it was unclear whether or not legal action could still be taken.