Solicitors in Northern Ireland could have to deal with a new form of tax, after it has been suggested that a levy should now be placed on holiday homes.

According to a report in the Belfast Telegraph, Donegal County Council is considering taxing people who live in the area for only part of the year.

Councillors claim that hundreds, if not thousands, of families who live in Belfast and Northern Ireland own homes in Donegal for the sole purpose of a holiday or a weekend away.

While Northern Ireland solicitors have, in the past, been able to negotiate deals where people who are not resident full-time in their Donegal property do not have to pay the same level of tax, this could all change.

Councillor Bernard McGuinness has proposed the new legislation, saying: "Holiday homeowners have said to me they cannot believe they aren't paying any charges."

The Belfast Telegraph reckons that there are around 8,000 holiday homes across County Donegal.

Should the legislation be passed, solicitors in Northern Ireland could see even fewer clients buying property, as a new tax would be another squeeze on finances.

Contact us for legal advice