Chancellor asking for advice to aid young people

[crankedup]

alock said:

crankedup said:

Apparently the equity release is becoming ever popular amongst mature home owners. Spending the cash on such things as holidays, cars, boats and other trivials that make life sweeter. Surely the families set to inherit can't bemoan thier parents good fortune? This equity release perhaps should be taxed?

I've planned equity release into my retirement. I'm paying for a house that is a stretch to afford and therefore only paying 12% into my pension. My retirement is planned on pension and the lump sum equity release.

If equity released was taxed, I wouldn't have moved to my current house and would still be in the smaller house I made available for a young family.

Everything has consequences.

Edited to add the real choice I faced 5 years ago.

Option 1: Live mortgage free in what would be an ideal home for a young family while paying an extra £2000/month from my gross salary into my pension.
Option 2: Sell the house to a young family and get a mortgage with my £1200/month from net salary.

How is is option 1 better for the exchequer or society? Why should my house value be taxed when I'm paying for it with taxed income?

Edited by alock on Tuesday 17th October 09:08

TBH my reason for throwing the tax equity release lump sum into the debate was purely is purely to feed the thread. I could never justify or support such a tax, as a Society we have been encouraged to buy our own homes, to then tax part of that home amounts to what would be a major cynical manipulation that would condemn any political party to the wilderness.

[anonymous-user]

I think you're all missing the point. Slash Government spending by reducing the number of MPs in every parliament, reduce the number in the HOL by 75%, decimate the CS and cut spending that doesn't have a payback.

Simplify every governmental process, especially taxation, and there'd be no need to wonder how the youth could be helped; or anyone else for that matter.

It's not just the direct savings, fewer politicians will spend fewer billions on achieving just about as much.

I know it won't happen, too many people with vested interests in the status quo, but all the earlier suggestions are nothing more than rearranging the deckchairs.

Btw Eric, what was your comment about Marriage Allowance aimed at? Every married couple gets Marriage Allowance in the right circumstances don't they? It's worth next to nothing in any case. If it's part of a simplification of the ridiculous taxation system, fine, but otherwise it's just another deckchair being moved.......

[768]

Grants for STEM degrees. Allow universities to raise tuition fees for those subjects. Reduce availability of loans.

Build lots of houses that aren't "affordable". Stop the schemes.

Put VED and third party insurance on fuel duty.

[Eric Mc]

REALIST123 said:

Btw Eric, what was your comment about Marriage Allowance aimed at? Every married couple gets Marriage Allowance in the right circumstances don't they? It's worth next to nothing in any case. If it's part of a simplification of the ridiculous taxation system, fine, but otherwise it's just another deckchair being moved.......

The transfer of unused allowances between spouses is a different form of Marriage Allowance to the old type. The old type was abolished for most married couples over ten years ago - but retained for married couples born before 5 April 1935 - so that old allowance is petering out as couples of that vintage die off.

[CaptainSensib1e]

Moonhawk said:

I'd abolish stamp duty - and replace it with CGT on first homes, albeit at a reduced rate.

Getting on (or moving up) the housing ladder is hard enough without being stung for a huge wad of tax up front too.

It would also make moving whilst in negative or neutral equity less costly - and would also lower the cost of making a sideways move to find work.

Anybody who has paid stamp duty on their current home would be exempt for their next house move.

Not easy to work in practice, how do you account for money/time spent renovating a property? If I took 6 months off work to renovate my house, how should be taxed on any gain created?

[robinessex]

The housing situation would be solved if house were homes, and not investment vehicles. Supply and demand. Increase the supply, house prices reduce. The money not chucked at barely affordable mortgages can then be spent in the community, which spreads wealth to more.

[edh]

CaptainSensib1e said:

Moonhawk said:

I'd abolish stamp duty - and replace it with CGT on first homes, albeit at a reduced rate.

Getting on (or moving up) the housing ladder is hard enough without being stung for a huge wad of tax up front too.

It would also make moving whilst in negative or neutral equity less costly - and would also lower the cost of making a sideways move to find work.

Anybody who has paid stamp duty on their current home would be exempt for their next house move.

Not easy to work in practice, how do you account for money/time spent renovating a property? If I took 6 months off work to renovate my house, how should be taxed on any gain created?

You tax land not buildings - why should you penalise someone for improvements? Increase in land value is the windfall gain. The buildings / improvements element is why business rates aren't ideal.

[JB!]

98elise said:

oyster said:

85Carrera said:

oyster said:

It's hilarious that you're suggesting the young should work for things, when the older generations sit on £trillions of property equity that they haven't worked for either!!

And that is broadly untaxed.


This is the real elephant in the room.
The UK is in huge debt (government and personal) and we're still running up a sizeable annual deficit. Yet we have trillions of unearned, untaxed money tied up in residential property.

Actually he's right. The young today do not want to make the sacrifices previous generations did to get on the housing ladder; they expect everything to be handed to them on a plate.

On topic - best thing Hammond could do is resign but failing that simplify the tax system including abolishing NI and introducing a flat rate of tax relief for pension contributions (ideally based on age so the earlier you save the higher the rate of tax relief you receive)

What sacrifices have I made to get a £million pound house?
I can tell you - I have worked just as hard as everyone else, except the difference is I got lucky about when I was born. And I haven't paid tax on that luck.

All the time need to live in a house you have no benefit from the value. If you move to another area with similar house prices then again you have no benefit.

Take this example. My mother bough her house 50 years ago for 3.5k. Its now worth a little over 200k. She doesn't have 200k in her hand, she simply lives in the same house she bought 50 years ago.

If she needed to move to a bungalow then she would effectively have 200k profit to be taxed on. The majority of that would be 40% so she could be looking at an 80k tax bill just to move a few miles, but of course she can't now afford that bungalow as 120k buys very little in the area.

The worst solution to the housing crisis is not to tax people more, that just adds to the problem. The solution is to get building.

Thankyou!

Lots of quality houses will require builders, which in turn will provide employment!

So not only are we building affordable housing stock or council stock, but creating jobs too!

Winner winner!!!!

[robinessex]

Just had a Txt from my (can't afford a mortgage) daug, re advice for the Chancellor. Resign !! Actually, that's the only word in her reply that I can post here !!

[bearman68]

House prices are falling in most parts of the country - except London.

Reduce immigration so our young people are more prepared for the jobs that immigrants are doing. (Youth unemployment >10%)
Use the long term low interest rate to invest in all sorts of infrastructure, especially in transport and digital economies.
Apply residency rules to London houses, or anywhere else where there is a 'bubble'.
Redefine what the NHS role actually is. (A&E, & GP's predominantly) - look for a low cost private provider for other services. A huge bureaucratic organistation can never be efficient. Control the never ending suction of money into this org.
Better control of the universities to value check graduate courses.

[V8 Fettler]

The Home Service broadcast a programme earlier today re: house prices; the majority of "wards" in the UK have suffered house price deflation in real terms since the bankers wrecked the economy ten years ago, London and the Home Counties being the exception.

http://www.bbc.co.uk/news/business-41582755

[Murph7355]

robinessex said:

Just had a Txt from my (can't afford a mortgage) daug, re advice for the Chancellor. Resign !! Actually, that's the only word in her reply that I can post here !!

Did she say who she wanted in his place? John McDonnell?

[Jockman]

bearman68 said:

House prices are falling in most parts of the country - except London.

The complete opposite appears to be happening.

https://www.theguardian.com/business/2017/sep/29/l...

[anonymous-user]

JB! said:

Build a metric fktonne of houses to a high standard in terms of build quality and size, and build them where people actually want to live.

Build quality council housing.

Build spacious estates.

It's the single biggest expense in the UK, home ownership.


Continue to spend on infrastructure.

You forgot the ONE main issue with that NIMBYISM.

[jazzybee]

With my son being in the first year of the higher tuition fees, now working and earning a good wage, end the stupid terms on student debt that was introduced. Interest rates have increased to a silly level, and if he wants to pay it off early to avoid those higher rates with his savings, he has to be huge penalties.

[wisbech]

robinessex said:

Just had a Txt from my (can't afford a mortgage) daug, re advice for the Chancellor. Resign !! Actually, that's the only word in her reply that I can post here !!

Well, of course she can’t afford a mortgage if she is wasting her money on fancy shmancy mobile phones and avocados and tattoos. In my day we ate apples and used pay phones and that is how we could afford mortgages.

[robinessex]

wisbech said:

robinessex said:

Just had a Txt from my (can't afford a mortgage) daug, re advice for the Chancellor. Resign !! Actually, that's the only word in her reply that I can post here !!

Well, of course she can’t afford a mortgage if she is wasting her money on fancy shmancy mobile phones and avocados and tattoos. In my day we ate apples and used pay phones and that is how we could afford mortgages.

Er, she has a cheap mobile phone ( a present actually), no tattoos, and she prefers apples from our own tree.

[wisbech]

robinessex said:

wisbech said:

robinessex said:

Just had a Txt from my (can't afford a mortgage) daug, re advice for the Chancellor. Resign !! Actually, that's the only word in her reply that I can post here !!

Well, of course she can’t afford a mortgage if she is wasting her money on fancy shmancy mobile phones and avocados and tattoos. In my day we ate apples and used pay phones and that is how we could afford mortgages.

Er, she has a cheap mobile phone ( a present actually), no tattoos, and she prefers apples from our own tree.

Well in that case she obviously didn’t work hard enough at school to get a top job so as to afford a mortgage. Kids these days expect it all on a plate. Why is she texting you and not out there working a second job, and running an eBay site on the side?

(Some sarcasm may be imputed to these posts...)

[robinessex]

wisbech said:

robinessex said:

wisbech said:

robinessex said:

Just had a Txt from my (can't afford a mortgage) daug, re advice for the Chancellor. Resign !! Actually, that's the only word in her reply that I can post here !!

Well, of course she can’t afford a mortgage if she is wasting her money on fancy shmancy mobile phones and avocados and tattoos. In my day we ate apples and used pay phones and that is how we could afford mortgages.

Er, she has a cheap mobile phone ( a present actually), no tattoos, and she prefers apples from our own tree.

Well in that case she obviously didn’t work hard enough at school to get a top job so as to afford a mortgage. Kids these days expect it all on a plate. Why is she texting you and not out there working a second job, and running an eBay site on the side?

(Some sarcasm may be imputed to these posts...)

Idiot. 1st class degree, and she worked 9 months before her first paid job in 2 internships. Unpaid. If you can’t post constructive comments, please shut the door on your way out.

[98elise]

robinessex said:

wisbech said:

robinessex said:

wisbech said:

robinessex said:

Just had a Txt from my (can't afford a mortgage) daug, re advice for the Chancellor. Resign !! Actually, that's the only word in her reply that I can post here !!

Well, of course she can’t afford a mortgage if she is wasting her money on fancy shmancy mobile phones and avocados and tattoos. In my day we ate apples and used pay phones and that is how we could afford mortgages.

Er, she has a cheap mobile phone ( a present actually), no tattoos, and she prefers apples from our own tree.

Well in that case she obviously didn’t work hard enough at school to get a top job so as to afford a mortgage. Kids these days expect it all on a plate. Why is she texting you and not out there working a second job, and running an eBay site on the side?

(Some sarcasm may be imputed to these posts...)

Idiot. 1st class degree, and she worked 9 months before her first paid job in 2 internships. Unpaid. If you can’t post constructive comments, please shut the door on your way out.

I think you need to read (or comprehend) a little harder