Property tax mulled over

Graham_Devon

Seems we could be heading for a property tax to be applied.

No one knows the details. But it would replace the 50p tax rate.

He told BBC Radio 4's Today that, while the exact nature of the tax was currently being negotiated, a "mansion tax" on very expensive homes was an "economically sensible way of doing it".

Mr Cable said: "If that (the 50p rate) were to go, it should be replaced by taxation of wealth, because the wealthy people in the country have got to pay their share, particularly at a time of economic difficulty.

"How exactly that is configured is a detailed matter for negotiation. But that principle must be upheld, and a mansion tax actually is a very economically sensible way of doing it.

"But there are different ways of doing it. It can be done through local government as well as central government. And providing the principle is accepted - that taxation should be related to property - and there are vast numbers of extraordinarily valuable properties now around in the south of England, netting very large gains for their owners, many of whom come from abroad incidentally.

A "mansion" tax would apply to many houses in London. So could be a big blow for property investment in London, as it's basically tax on property investment.

This one could get very messy I'd imagine, as those invested in primarily London property won't like this one iota.

Obviously, with the details still unknown, it's difficult to see what sort of impact this could have. All we can go on for now is the fact Vince Cable, who was urging for this before they even got into the coalition was targetting properties worth over £1m.

http://www.bbc.co.uk/news/uk-politics-17260348

Graham_Devon

Some interesting stores emerging too.

The labour peer who lives in Primrose Hill and occupies a house far larger than is needed suggests she can see why taxes need to be raised, it's just not fair they may be raised from her:
http://www.telegraph.co.uk/property/9123806/After-40-years-why-should-I-be-forced-to-sell-my-property.html#disqus_thread

Apparently she may be forced to sell her £3-5m property if this comes in, which is of course hideous. She worked hard to buy this £12,000 pad in 1964. A sum massively beyond reach to the majority.

She feels it's fair that the wealthy get taxed more, so long as it doesn't include her. She claims shes on a modest income. I'd like to see what her version of modest is.

Oh well, I guess campaigning for socialism is OK, so long as is doesn't turn round and bite you on the arris. Then it's hideous.

purch

Graham_Devon wrote: »

The labour peer who lives in Primrose Hill

You mean Joan Bakewell, TV Presenter, Broadcaster, Newspaper columnist and novelist.

I think calling her "the labour peer" scarcely does justice to her illustrious career.

PasturesNew

Why not just bang another Council Tax band on top of the existing ones. Why come up with something else entirely?

FTBFun

Graham_Devon wrote: »

A "mansion" tax would apply to many houses in London. So could be a big blow for property investment in London, as it's basically tax on property investment.

This one could get very messy I'd imagine, as those invested in primarily London property won't like this one iota.

13% of London property is over £1m. But what about those poor people in Beaconsfield, 47% of them?

http://www.propertywire.com/news/europe/million-pound-properties-uk-201109195574.html

wotsthat

Graham_Devon wrote: »

Seems we could be heading for a property tax to be applied.

No one knows the details. But it would replace the 50p tax rate.

I know exactly how it'll work. Firstly the government will make out that it'll only apply to 'fat cats', bankers and the like. This will therefore receive wide public support as someone else will be paying it.

Then the tax will be introduced and many will be rather surprised to find it's applied to people on more modest means and that there's a loophole for really rich people who own properties through companies (like fat cats or bankers for example).

Then, horror of horrors, a cuddly pensioner will have to sell their house and so u-turns will be quickly performed and they'll just increase council tax for everyone except fat cats and bankers.

Job done. Plenty of populist support along the way and more tax raised to spend badly.

RenovationMan

Graham_Devon wrote: »

This one could get very messy I'd imagine, as those invested in primarily London property won't like this one iota.

There is already a tax on gains made on investment properties, it's called Capital Gains tax and for these sorts of gains it'll be at 28% for the most part.

Wheezy_2

Property Tax mulled over.....by a Libdem MP

Another Libdemmer doesn't think it stands much chance though.

The Deputy Prime Minister signalled his plan for a levy on £1 million-plus London homes stands little chance of success while the parties are in government together.

Treasury ministers are drawing up ways to target super-wealthy homebuyers in March's budget, but the mansion tax is unlikely to feature. "I stick to my guns that this is something I think we should do, but this is a coalition government," Mr Clegg said.

http://www.thisislondon.co.uk/news/politics/conservatives-have-ruined-my-mansion-tax-plan-says-clegg-7308185.html

IveSeenTheLight

Graham_Devon wrote: »

Mr Cable said: "If that (the 50p rate) were to go, it should be replaced by taxation of wealth, because the wealthy people in the country have got to pay their share, particularly at a time of economic difficulty.

Arguably, because higher earner pay more in tax, they are already paying more than their "share"

IveSeenTheLight

PasturesNew wrote: »

Why not just bang another Council Tax band on top of the existing ones. Why come up with something else entirely?

Wouldn't it be far more transparent if there was just one tax and get rid of all other forms of tax income.

Ok, ok, I know it's not fair as : -

• non smokers would be paying more for the loss of that tax revenue,
• non drivers would be paying more for the los of fuel, road and VAT etc
• non travellers would be paying for those travelling abroad
• etc
• etc
• etc
• etc

but it would be refreshingly transparent exactly how much of your income goes on tax.

Emy1501

IveSeenTheLight wrote: »

Arguably, because higher earner pay more in tax, they are already paying more than their "share"

Whats a fair share though? A recent survey suggested that areas like Elmbridge etc ie the wealthy areas of the south had been the least affected by the cuts so far.

My understanding is a Mansion tax will cost someone living in a 2m house an etc 5k a year. Not a huge amount of money for anyone who can afford to live in one of these houses regardless of whether they are a pensioner or not.

We are all in this together and a tax like this may go some way to show this.