Re: Re: Smithfield Market Development
My biggest concern with this type of development is the Section 23 status.
Absolutely. These development tax breaks have far outlived their usefulness and are now actually damaging the country. The reason a one bed can fetch 370k is simply because an investor (who already owns a number of investment properties) can probably recoup about 150k of the purchase price against tax. This is perverse; the general exchequer loses out to the tune of 150k while owner occupiers are priced out of the market. Another property based tax relief – section 48 – is causing traditional costal villages and holiday areas to be engulfed in barely utilised holiday home housing estates. Tax breaks are an extremely crude instrument compared to grant aid. At least with the latter each proposal can be vetted. No matter how shite or nasty the development is, the exchequer ends up subsidising it (through foregoing tax) as long as some very basic conditions are met. At least with a grant scheme, the criteria can be tuned from year to year. The sooner these tax breaks are dispensed with the better.