An “anti-English” decision to double the council tax premium on second home owners in Gwynedd could be challenged in court, campaigners have warned.

A crowdfunding page has been launched amid claims that the charge – which is fully permitted under current Welsh legislation – is “discriminatory” and “based on anti-English sentiments.”

This is despite measures also being in place in areas such as the Lake District and Cornwall to stem the snapping up of holiday homes, with the premium also being levied on local people who own second properties in Gwynedd.

But while the authority has stressed that the charge isn’t in place to “punish second home owners,” the CrowdJustice campaign claims that the premium “disproportionately affects those who aren’t Welsh” and has already raised over £8,000 with a view towards launching a judicial review of the tax hike.

Current legislation allows Welsh councils to charge a council tax premium of up to 100% on second and long term empty homes, with two of the 22 currently charging the maximum amount – namely Gwynedd and Swansea.

Some parties have been campaigning to increase this figure to as much as 500% in a bid to support locals in light of the “out of control” housing market.

Most other authorities have so far resisted the maximum premiums – essentially doubling the charge paid if it were not a second home – fearing it would spurr on more to explore ways of avoiding paying  council tax at all.

Another six councils, however, charge premiums of between 25% and 50%, with some planning to increase this figure over the coming years.

But the crowdfunding page, set up by Anthony Chancellor, claims that last month’s decision to double Gwynedd’s premium from 50% to 100% means that many will face having to pay around £3,600 a year in tax alone for a two bed property.

He wrote, “The decision taken was unfair, irrational, unreasonable and discriminatory. We believe the decision was based on anti-English sentiments.

“Little consideration was given to the impact on older people,  those who suffer from disabilities or those who are on fixed incomes.

“Some of our group are pensioners and will genuinely struggle to pay. Furthermore, the decision disproportionately affects those who aren’t Welsh.”

They have already surpassed the £6,000 target, which they say will be used to pay for advice from a senior Barrister on the merits of a judicial reviewing.

He added, “We believe that if Gwynedd is not challenged it will impose further unfair and discriminatory taxes not only on us but other groups, such as those who own furnished holiday lets.”

But a recent Welsh Government commissioned report found that councils not deciding to charge the maximum allowed premium may be weakening their case to shut what has often been described as a  tax “loophole”.

Current rules mean that if a second home is available for commercial letting as self-catering accommodation for 140 or more days in a year, and actually let for at least 70 days, it qualifies for non-domestic rates rather than council tax.

This, according to the Welsh Local Government Association (WLGA), usually results in them also being eligible for Small Business Rate Relief and can often mean they end up paying no taxes at all into the Welsh public purse.

Dr Simon Brooks’ report recommended that the Welsh Government should look at amending planning policy,”hand in hand” with efforts across affected local authorities to charge the full premium.

“Much recent public debate about second homes has proposed making far-reaching changes to planning law,” noted Dr Brooks.

“However, from a public policy perspective, it becomes more difficult to justify a change to planning legislation if existing taxation powers are not used.

“By not charging the full premium for second homes, county councils that are concerned about the situation are weakening their case.

“It is in the public interest therefore that county councils in areas where there is a high number of second homes use their taxation powers fully. There are indications that some local authorities in relevant parts of Wales are about to do this, and others are moving in that direction.

“This, in turn, justifies an appropriate response by the Welsh Government including full consideration of other policy options, including those discussed in this report.”

Speaking during last month’s debate – which saw the 100% premium backed by 38 to 16 – the portfolio holder for housing said they had to  prioritise the 60% of locals priced out of the market over those seeking a second home in Gwynedd.

Cllr Craig ab Iago went on to point towards council figures showing that 10.77% of Gwynedd’s housing stock is already designated as second homes, with indications suggesting that this figure is on the rise.

The authority has already pledged to plough back the proceeds of the increased premium – expected to be £3m a year – into a £77m housing action plan which includes securing 1,500 affordable properties and to help clear an “ongoing emergency” of rising waiting lists.

A Gwynedd Council spokesperson said,  “Recent research shows that 60% of Gwynedd residents are priced out of the housing market.

“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 Council has made it a priority to address this situation and to help ensure a suitable supply of affordable housing for local people to live in their communities through our Housing Strategy.”