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The Real Reason House Prices Are Rising - Why Help To Buy Is A Good Idea
Comments
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I suppose you could describe council tax the same way.
Land zoned for development will in general be decided by the local government taking into a/c local develeopment requirement without the land owner applying.
I t would be somewhat unjust if Farmer Giles is happily making a living out of whatever he does with his land.
It is one thing for it to be zoned or get listed under the SHLAA it is quite another thing for it to suddenly become prime development land that is tax worthy."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »I t would be somewhat unjust if Farmer Giles is happily making a living out of whatever he does with his land.
It is one thing for it to be zoned or get listed under the SHLAA it is quite another thing for it to suddenly become prime development land that is tax worthy.
well lets say farmer giles farms 100 acres that are worth 10,000 per acre i.e. his land is worth £1 million
now lets say that he happens to live near a town or village with a housing problem and the council re-zones his farm with development permission.
his land may now be worth 1 million per acre ie. his farm is now worth £100 million through no particular merit of his.
now I understand your extreme sympathy for the poor farmer who must now pay a higher land value tax but it will encourage him to think about allowing development on the land to meet the local housing needs and it allows the community to benefit from the tax raised on the value of the land that is caused by that community.0 -
well lets say farmer giles farms 100 acres that are worth 10,000 per acre i.e. his land is worth £1 million
now lets say that he happens to live near a town or village with a housing problem and the council re-zones his farm with development permission.
his land may now be worth 1 million per acre ie. his farm is now worth £100 million through no particular merit of his.
now I understand your extreme sympathy for the poor farmer who must now pay a higher land value tax but it will encourage him to think about allowing development on the land to meet the local housing needs and it allows the community to benefit from the tax raised on the value of the land that is caused by that community.
I don't think you would have to tax the land to encourage farmers to sell if their farm land was re zoned building land.
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well lets say farmer giles farms 100 acres that are worth 10,000 per acre i.e. his land is worth £1 million
now lets say that he happens to live near a town or village with a housing problem and the council re-zones his farm with development permission.
his land may now be worth 1 million per acre ie. his farm is now worth £100 million through no particular merit of his.
now I understand your extreme sympathy for the poor farmer who must now pay a higher land value tax but it will encourage him to think about allowing development on the land to meet the local housing needs and it allows the community to benefit from the tax raised on the value of the land that is caused by that community.I don't think you would have to tax the land to encourage farmers to sell if their farm land was re zoned building land.
Said farmer will no longer be able to service the tax and be forced to sell at at whatever figure a developer decides to pay. It will effectively become a distress sale. Even if they offer a reasonable sum he will pack his backs and leave with his cheque. Any tax due from any gain will simply go to the treasury, when he fills in his self assessment, I doubt much would end up in the local coffers.
Said developer will now have to fund the land purchase price and the tax liability which will simply be costed into the development and the buyer will end up paying.
Alternatively nobody comes along wanting to buy the land as their is no real demand at the price and mortgages can't be had for love nor money . Said farmer can't service the tax, farm goes to pot, goes bankrupt, council takes the land in lieu of payment. Land lies derelict.
Alternatively land could be CPO'd for a fair price say £100k an acre, and the council could release land for development as required, keeping the profit. They could even use it to erect affordable social housing. Said farmer retires happy and pays a nice serviceable taxable element to the treasury."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »Said farmer will no longer be able to service the tax and be forced to sell at at whatever figure a developer decides to pay. It will effectively become a distress sale. Even if they offer a reasonable sum he will pack his backs and leave with his cheque. Any tax due from any gain will simply go to the treasury, when he fills in his self assessment, I doubt much would end up in the local coffers.
Said developer will now have to fund the land purchase price and the tax liability which will simply be costed into the development and the buyer will end up paying.
Alternatively nobody comes along wanting to buy the land as their is no real demand at the price and mortgages can't be had for love nor money . Said farmer can't service the tax, farm goes to pot, goes bankrupt, council takes the land in lieu of payment. Land lies derelict.
Alternatively land could be CPO'd for a fair price say £100k an acre, and the council could release land for development as required, keeping the profit. They could even use it to erect affordable social housing. Said farmer retires happy and pays a nice serviceable taxable element to the treasury.
yes
having your land increase in vlaue by 10,000% is quite a burden.0 -
yes
having your land increase in vlaue by 10,000% is quite a burden.
To have a a "council tax" bill land on your door mat, based on that assessed valuation, would be quite a burden I should think
There is little point having a paper asset that you cannot service the liabilities on.
The eventual buyer will end up paying not the landowner."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »To have a a "council tax" bill land on your door mat, based on that assessed valuation, would be quite a burden I should think
There is little point having a paper asset that you cannot service the liabilities on.
The eventual buyer will end up paying not the landowner.
How would you free up land for building new homes or businesses?0
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