Mansion tax

drc

Nick Clegg has apparently vowed to push through a "mansion tax" on homes worth more than £2million.

What do people think about this suggestion?

http://www.telegraph.co.uk/news/politics/9041171/Nick-Clegg-well-stick-to-our-guns-on-mansion-tax.html

CLAPTON

it's a start but I would prefer a land value tax so that as the value of the land increases the tax increases proportionately

Going4TheDream

I suppose it all depends if the people who own the houses have paid all their 'due income tax' on their earnings to be able to afford the house in the first place... if they have it just seems to me a tax for being successful? I suppose the problem is that once you start earning the sort of money to be able to afford that kinda property you probably dont pay tax in the same way as the average person and we hear stories all the time about very high earners sometimes paying less tax than average earners ??

lostinrates

Going4TheDream wrote: »

I suppose it all depends if the people who own the houses have paid all their 'due income tax' on their earnings to be able to afford the house in the first place... if they have it just seems to me a tax for being successful? I suppose the problem is that once you start earning the sort of money to be able to afford that kinda property you probably dont pay tax in the same way as the average person and we hear stories all the time about very high earners sometimes paying less tax than average earners ??

Well, one day in the not terribly distant future our house might be worth that, but we have bought it as a wreck with significant issues and dh pays tax at a very high rate.....

Going4TheDream

lostinrates wrote: »

Well, one day in the not terribly distant future our house might be worth that, but we have bought it as a wreck with significant issues and dh pays tax at a very high rate.....

And that to me is a strong argument against the tax... why essentially should you pay twice. I am sure there are other people in similar situations.

PasturesNew

I've always wondered why council tax stopped at Band H, with multi-billionaires paying the same for their castles as a lot of people in 'regular' houses.

verydeeppockets

Council tax is paid to provide local services, so should reflect the load that the household puts on the system - so if you're a pensioner alone in a 5 bed house, should you should pay less than the family with 2 wheelie bins next door. Or would your higher medical bills cancel that out?
I'd also argue that once you have private health care, a private security firm and spend 6 months of the year in Barbados, your load on the local authority is pretty low.
The mansion tax is the complete opposite of this. And it is a tax on success, which I'm not sure is sending out the right message?

borkid

It will affect the regions differently, if this tax 'has' to be brought in then a better figure would be a multiple of the average local house price. However I think it would be much better to tighten up on the tax paid on earnings or maybe tax houses which are only occupied for a short time each year ( so that the owner avoids UK tax). Where will it all stop? Next thing will be a tax on possessions, art works, cars, jewellery maybe even tax savings :eek: in addition to interest on savings.

drc

This kind of tax (on unearned income) is preferential to a tax on earned income imo.

custardy

Going4TheDream wrote: »

I suppose it all depends if the people who own the houses have paid all their 'due income tax' on their earnings to be able to afford the house in the first place... if they have it just seems to me a tax for being successful? I suppose the problem is that once you start earning the sort of money to be able to afford that kinda property you probably dont pay tax in the same way as the average person and we hear stories all the time about very high earners sometimes paying less tax than average earners ??

it really depends
an average joe could have a £2 million house if they were smart,bought early and traded up etc
It doesnt imediatly show they earn a fortune and beat the poor for sport

michaels

So if I but an asset like gold, fine wine or art I can hold it as long as I want without paying tax on it every year but if I buy property I must pay tax - how is this fair?

However because the supply of land in the country is limited I think any REAL increase in land value should accrue partly to the country rather than just the individual. My suggestion: remove tax relief from PPR real capital gains.