More hardworking taxpayers about to offshore - New property tax inbound.

PaulF81

http://www.telegraph.co.uk/news/politics/9686083/Tax-raid-on-Britains-rich-in-next-few-weeks-Vince-Cable-says.html

The Business Secretary signalled that the Coalition was preparing to unveil a new taxation rate for the better off – possibly at the Autumn statement on December 5.

Pressed on the Andrew Marr programme on BBC1, Mr Cable said that he expected the debate about taxing the well off to be “resolved in the next few weeks”.

The most likely vehicle for the tax raid would be through increasing taxes on people’s homes.....


.....Asked if he favoured creating a new top council tax band – an 'I' band beyond the current 'H' – or an increase in stamp duty on large properties, Mr Cable said they were “all under discussion”.

Mr Cable said: “This is all under discussion – as with so many of these things the devil is in the detail and it is right we do tax wealth and it is the obvious place to go.

“One of the reasons it is the obvious place is that it is fairer – you can’t run off to Monaco or Lichtenstein. If you want to deal with abuse of the tax system this is the best way to do it.”

The Mail on Sunday reported that three new council bands would be established - H for properties worth over £1million, I for homes worth over £1.2million and J for houses costing over £1million to buy.

I contribute enough already. I want to see more lazy people starve or at least not get as clinically obese before they tax me more heavily. This will definitely push many a UK tax payer away from the uk. If this effects my income band, or house valuation band, I am off, and with me my tax.

About time the lib dems got a dose of realism; they are sinking this country.

grizzly1911

PaulF81 wrote: »

http://www.telegraph.co.uk/news/politics/9686083/Tax-raid-on-Britains-rich-in-next-few-weeks-Vince-Cable-says.html



I contribute enough already. I want to see more lazy people starve or at least not get as clinically obese before they tax me more heavily. This will definitely push many a UK tax payer away from the uk. If this effects my income band, or house valuation band, I am off, and with me my tax.

About time the lib dems got a dose of realism; they are sinking this country.

So will yo be affected by an I band now or in the foreseeable future?

Not much different to paying maximum VED on your Bentley.

Nobody forces them to live in large properties in the middle of the city, which is where most of these hits would be taken. At least they have a choice. Johny Urchin doesn't have much choice when VAT is increased.

How many of these properties are owned by non doms or people using "legitimate" tax avoidance schemes anyway?

kabayiri

I remember reading here that the council was struggling to collect all council tax due on a posh place like that Hyde Park Corner One block.

How will having a higher rate change this?

BobQ

Frankly I cannot get worked up over anyone with a £1m+ house whining about their Council Tax. Taxes go up and down and if a Tory led Government thinks its fair to increase tax for those who choose to live in homes of this value why should I conclude its unfair?

I take the point that there are many lazy people around who contribute nothing to society but that is no reason to pick on only those who are poor.

I doubt a bit of extra Council Tax will be enough to incentivise people to leave the country whatever they may say in the heat of the moment. If they do, then they were probably planning to leave anyway. You also have to ask whether these people actually create wealth in the UK in the first place.

headcone

PaulF81 wrote: »

http://www.telegraph.co.uk/news/politics/9686083/Tax-raid-on-Britains-rich-in-next-few-weeks-Vince-Cable-says.html



I contribute enough already. I want to see more lazy people starve or at least not get as clinically obese before they tax me more heavily. This will definitely push many a UK tax payer away from the uk. If this effects my income band, or house valuation band, I am off, and with me my tax.

About time the lib dems got a dose of realism; they are sinking this country.

Don`t let the door hit you on the ars@ on the way out.

Jeez some peoples sense of self importance.

PaulF81

grizzly1911 wrote: »

So will yo be affected by an I band now or in the foreseeable future?

Not much different to paying maximum VED on your Bentley.

Nobody forces them to live in large properties in the middle of the city, which is where most of these hits would be taken. At least they have a choice. Johny Urchin doesn't have much choice when VAT is increased.

How many of these properties are owned by non doms or people using "legitimate" tax avoidance schemes anyway?

My concern is they havent declared HOW yet, just that a scheme is inbound. Cant imagine they are going to get much by targetting the top, I am band F, but have bl00dy worked for it.

Who is to say this could affect more than the article suggests?

vivatifosi

PaulF81 wrote: »

My concern is they havent declared HOW yet, just that a scheme is inbound. Cant imagine they are going to get much by targetting the top, I am band F, but have bl00dy worked for it.

Who is to say this could affect more than the article suggests?

The plan is to add bands for houses worth over £1m. Band F isn't the top band, you have bands G and H above you.

I hate quoting from the Daily Mail, but what they are saying is that this will be a revaluation of homes in bands G and H. If they are currently worth over £1m, they will go into or stay in H. Over £1.2m will go into band I. Over £2m will go into band J. So yours shouldn't be affected as even if it is worth over £1m, it isn't in a band that will come under investigation. Though again, the caveat is that this is from the Mail:

http://www.dailymail.co.uk/news/article-2234611/REVEALED-Secret-new-mansion-tax-plan-hammer-1m-homeowners.html

kabayiri

vivatifosi wrote: »

The plan is to add bands for houses worth over £1m. Band F isn't the top band, you have bands G and H above you.

I hate quoting from the Daily Mail, but what they are saying is that this will be a revaluation of homes in bands G and H. If they are currently worth over £1m, they will go into or stay in H. Over £1.2m will go into band I. Over £2m will go into band J. So yours shouldn't be affected as even if it is worth over £1m, it isn't in a band that will come under investigation. Though again, the caveat is that this is from the Mail:

http://www.dailymail.co.uk/news/article-2234611/REVEALED-Secret-new-mansion-tax-plan-hammer-1m-homeowners.html

As long as they enforce collection I don't mind this. It's when councils struggle to locate details of the owner to demand payment where the issue lies.

Simple answer : no payment / no access to support services when your house gets burned down/burgled. That might make people more dilligent with their upmarket London crashpads.

vivatifosi

Agent-47 wrote: »

Best sell all your property now, before everyone else is trying to sell up from the UK before the big property falls come in as veryone is trying to get out.

Here we go again...

Sell and do what? Live on the pavement surrounded by piles of silver bullion until I get mugged?

The simple reality is that most people, while not wanting prices to fall dramatically, have enough equity tied up in their house that they'll still carry on paying their mortgage and living where they do, therefore there will never be a situation where everyone is trying to get out.

It's never going to swing the other way (towards bullion) to the extent that you want to see. Even if things get really hairy, people will be stockpiling food and guns way before silver.

vivatifosi

kabayiri wrote: »

As long as they enforce collection I don't mind this. It's when councils struggle to locate details of the owner to demand payment where the issue lies.

Simple answer : no payment / no access to support services when your house gets burned down/burgled. That might make people more dilligent with their upmarket London crashpads.

Mmm... I like that idea but worry that it won't be fair on the person next door if a house is allowed to burn down and the fire spread.

However, thinking laterally, we could always give ourselves the powers to take over said properties on which taxes are unpaid and use them as social housing until payment is forthcoming. I daresay that'd have the desired effect.

kabayiri

vivatifosi wrote: »

...
However, thinking laterally, we could always give ourselves the powers to take over said properties on which taxes are unpaid and use them as social housing until payment is forthcoming. I daresay that'd have the desired effect.

I am reminded of the Top Gear story where they discovered a small handful of Ferraris and Mercede Coupe convertibles registered as mini cabs ; all done to avoid paying a few quid in congestion charge.

Obviously can afford the meteoric fuel and insurance but not a London road toll eh?