mansion tax

[motco]

Either Cameron or Miliband are being opportunistic here because Radio 4 'Today' said this morning that Osborne was mooting reviving the 10% starting rate for income tax. One or the other is trying to shoot the other's fox.

[longblackcoat]

Mermaid said:

McWigglebum3rd said:

Yeah they would never dream of dropping it to hit those bds that live in £1m houses

And what about those bds that live in £0.5m houses

And then there is those bds that live in £0.25m houses

All in good time.

What about those bds who have a portfolio of houses which collectively come to over £2m but which individually don't approach that?

[Fittster]

longblackcoat said:

What about those bds who have a portfolio of houses which collectively come to over £2m but which individually don't approach that?

I think they will have to pay capital gains tax on all but their primary residence.

If they are renting out some of the other houses, they will face a tax bill.

[98elise]

Mermaid said:

McWigglebum3rd said:

Yeah they would never dream of dropping it to hit those bds that live in £1m houses

And what about those bds that live in £0.5m houses

And then there is those bds that live in £0.25m houses

All in good time.

It will happen through inflation

My parents first house cost 3.5k, my first house cost 39k, my current house is worth about 250k.

By the time I retired this will just be called "house tax", and you will be paying it on anything with more than one room and an outside lav.

[fido]

BoRED S2upid said:

Not unworkable at all

Well if you include forcing someone to sell their property in order to pay the tax, then yes it's workable!
Sort of like an Inheritance Tax for the living.

[fadeaway]

longblackcoat said:

Mermaid said:

McWigglebum3rd said:

Yeah they would never dream of dropping it to hit those bds that live in £1m houses

And what about those bds that live in £0.5m houses

And then there is those bds that live in £0.25m houses

All in good time.

What about those bds who have a portfolio of houses which collectively come to over £2m but which individually don't approach that?

well nothing. Because it wouldn't apply to them. What with them not owning a "mansion" worth £2m.

[alock]

Muncher said:

It will be based at the value on a certain date, I suspect it will be based at April 2012 which is the date used for the tax on non natural persons.

Ed bought a house for £1.6m in 2009. I think we can be sure the tax will be set at a level where he doesn't have to pay it!
http://www.dailymail.co.uk/news/article-2213675/Ed...

[BoRED S2upid]

alock said:

Muncher said:

It will be based at the value on a certain date, I suspect it will be based at April 2012 which is the date used for the tax on non natural persons.

Ed bought a house for £1.6m in 2009. I think we can be sure the tax will be set at a level where he doesn't have to pay it!
http://www.dailymail.co.uk/news/article-2213675/Ed...

How does he earn £130k a year? thats a lot of money for doing what he does.

[JagLover]

Just as an aside as the population has aged, and the power of the grey lobby has grown, taxes on capital have fallen while those on income have risen.

I do not see myself why, in principal, a annual 'wealth' tax on properties worth over £2m is more objectionable than a 50p rate of income tax.

[oyster]

JagLover said:

Just as an aside as the population has aged, and the power of the grey lobby has grown, taxes on capital have fallen while those on income have risen.

I do not see myself why, in principal, a annual 'wealth' tax on properties worth over £2m is more objectionable than a 50p rate of income tax.

Agree.
There's far too much tax on income and not enough on wealth.

[Mermaid]

oyster said:

Agree.
There's far too much tax on income and not enough on wealth.

One has been taxed already. House price appreciation is everyone's target - if prices had halved, would you get a rebate?

[Bluequay]

oyster said:

JagLover said:

Just as an aside as the population has aged, and the power of the grey lobby has grown, taxes on capital have fallen while those on income have risen.

I do not see myself why, in principal, a annual 'wealth' tax on properties worth over £2m is more objectionable than a 50p rate of income tax.

Agree.
There's far too much tax on income and not enough on wealth.

It's not a tax on wealth it's a tax on high value properties. You could have a fleet of private jets, luxury cars and 20 houses worth 1.5 million each and you wouldn't pay a penny. It's a poorly thought through headline grabbing exercise.

Also if it was wealth tax you would be taxed on the equity you had in the property, not the property value itself

Edited by Bluequay on Thursday 14th February 14:08

[Ozzie Osmond]

This is yet another eason why london and the South East should leave the UK and form an independent state. Scotland and the other regions can sort themselves out!

[Muncher]

oyster said:

Agree.
There's far too much tax on income and not enough on wealth.

We had a very interesting seminar with someone from John D Wood last week and he pointed out that income cannot be taxed any further so that the next thing to be taxed will be wealth. Historically in these kind of economic circumstances assets have always been taxed so there is clear precedent for it.

Perhaps for another thread but they also said homes were now officially a "ponzi asset" and that in their view prices in real terms could only fall and would probably take 25 years to reach the same level again in real terms.

[BoRED S2upid]

There will be people out there now thinking up tax avoidance schemes for this.

[ascayman]

Ah, another southern tax, how predictable

[Halmyre]

Ozzie Osmond said:

This is yet another eason why london and the South East should leave the UK and form an independent state. Scotland and the other regions can sort themselves out!

Good fking riddance to London and SE - hoovering up vast sums of public expenditure and producing sod-all of any value in return.

[anonymous-user]

JagLover said:

Just as an aside as the population has aged, and the power of the grey lobby has grown, taxes on capital have fallen while those on income have risen.

I do not see myself why, in principal, a annual 'wealth' tax on properties worth over £2m is more objectionable than a 50p rate of income tax.

Not saying you're wrong but can you give an example of where taxes on capital have fallen?

From what I can see CGT, SDLT and IHT are as high as they've ever been, relative to other taxes.

[Ozzie Osmond]

Muncher said:

the next thing to be taxed will be wealth.

Capital Gains tax already operates as a Wealth Tax. The numerical "value" of stuff you own rises with inflation - you are then taxed on that increase in the numbers even though the real world value hasn't moved!!

[jdw1234]

Muncher said:

oyster said:

Agree.
There's far too much tax on income and not enough on wealth.

We had a very interesting seminar with someone from John D Wood last week and he pointed out that income cannot be taxed any further so that the next thing to be taxed will be wealth. Historically in these kind of economic circumstances assets have always been taxed so there is clear precedent for it.

Perhaps for another thread but they also said homes were now officially a "ponzi asset" and that in their view prices in real terms could only fall and would probably take 25 years to reach the same level again in real terms.

Do you have any slides or anything from that? Would be interested to see them.