Land Value Tax

[s1962a]

https://www.standard.co.uk/homesandproperty/proper...

Looks like LVT is coming if Burnham gets into power. I can see how it could be a fairer system for the country as a whole, but it's gonna be a lot more tax for people in more expensive homes. The homeowner also pays, not the resident, and it's going to be a higher rate for 2nd homes.

PHers with large/expensive estates, what are you gonna do?

[markh1973]

s1962a said:

https://www.standard.co.uk/homesandproperty/proper...

Looks like LVT is coming if Burnham gets into power. I can see how it could be a fairer system for the country as a whole, but it's gonna be a lot more tax for people in more expensive homes. The homeowner also pays, not the resident, and it's going to be a higher rate for 2nd homes.

PHers with large/expensive estates, what are you gonna do?

Surely the homeowner only pays if they don't pass the cost onto the resident as part of the rent.

[Dog Star]

To be honest that looks a lot fairer than what we have now, and what’s not to like about no stamp duty?

[s1962a]

markh1973 said:

Surely the homeowner only pays if they don't pass the cost onto the resident as part of the rent.

From the article

article said:

Under the proposals, stamp duty and council tax would be scrapped, with homeowners instead paying a flat 0.48 per cent tax on the current value of their property.

Some, though, will need to pay more. Under the proposals, second homeowners, foreign owners and empty properties will pay a higher rate of 0.96 per cent.

[Pachydermus]

s1962a said:

markh1973 said:

Surely the homeowner only pays if they don't pass the cost onto the resident as part of the rent.

From the article

article said:

Under the proposals, stamp duty and council tax would be scrapped, with homeowners instead paying a flat 0.48 per cent tax on the current value of their property.

Some, though, will need to pay more. Under the proposals, second homeowners, foreign owners and empty properties will pay a higher rate of 0.96 per cent.

and do you think the landlords are going to suck up an extra few thousand in costs or increase your rent to compensate?

[s1962a]

Pachydermus said:

and do you think the landlords are going to suck up an extra few thousand in costs or increase your rent to compensate?

Increase rent obviously. If you already own a main home then your LVT on your rental property will be 0.96% which you will then pass onto your tenants. You will also be paying 0.48% LVT on your main home, but you won't have any stamp duty to pay if you move.

[Murph7355]

s1962a said:

...

PHers with large/expensive estates, what are you gonna do?

Build an even bigger fence and stock up on shotgun shells.

Then vote him out in 2029 before he's had chance to actually implement it.

[king arthur]

All sounds sensible enough, until...

article said:

current value of their property.

So every property in the land has to be revalued?

[Pachydermus]

s1962a said:

Pachydermus said:

and do you think the landlords are going to suck up an extra few thousand in costs or increase your rent to compensate?

Increase rent obviously. If you already own a main home then your LVT on your rental property will be 0.96% which you will then pass onto your tenants. You will also be paying 0.48% LVT on your main home, but you won't have any stamp duty to pay if you move.

but you'll probably pay the equivalent of stamp duty in increased house prices.

[markh1973]

s1962a said:

Pachydermus said:

and do you think the landlords are going to suck up an extra few thousand in costs or increase your rent to compensate?

Increase rent obviously. If you already own a main home then your LVT on your rental property will be 0.96% which you will then pass onto your tenants. You will also be paying 0.48% LVT on your main home, but you won't have any stamp duty to pay if you move.

So ultimately the homeowner doesn't pay the tenant/occupier does.

[s1962a]

king arthur said:

So every property in the land has to be revalued?

No idea how it will work in practice. And if your neighbour with a similar house to yours sells for a higher amount, does your LVT go up too as now your houses are worth that new value?

[s1962a]

markh1973 said:

So ultimately the homeowner doesn't pay the tenant/occupier does.

Yes, same as all the other taxes of envy put on landlords by the labour/tory government.

What happens if your tenant stops paying rent? You still have to pay the LVT.

[Mr Pointy]

I'm sure it's completely irrelevant that the government will collect this tax centrally & decide how much each council gets & there's no likelihood of Labour penalising Conservative councils when allocating funds.

[franki68]

So people utilising council services won’t pay anything for them ?
If a property is leasehold but rented out who is taxed ..the leaseholder or the freeholder ?

It’s a good job attacks in recent years on property owners by multiple governments has resulted in a much better housing market with huge decreases in rent and a collapse in property values.

[xx99xx]

markh1973 said:

s1962a said:

Pachydermus said:

and do you think the landlords are going to suck up an extra few thousand in costs or increase your rent to compensate?

Increase rent obviously. If you already own a main home then your LVT on your rental property will be 0.96% which you will then pass onto your tenants. You will also be paying 0.48% LVT on your main home, but you won't have any stamp duty to pay if you move.

So ultimately the homeowner doesn't pay the tenant/occupier does.

Tenants currently pay council tax as they're the ones using local services, not the landlord. So passing this proposed tax on to the tenant mildly fair.

[GT4P]

Firstly I think getting rid of stamp duty is a good idea and the LVT is a way forward( bit like rates on property pre council tax) but it should be a case of all should pay wether you rent or not , it’s much fairer and there are plenty of renters in a far better financial position than some homeowners and as mentioned we all use the services
Secondly getting rid of stamp duty will help generate the housing market which is a bit flat in a lot of areas and generate some growth.
Now all I want is if does become PM he goes after these big heavy EVs that are becoming rather commonplace and I am sure they are having a detrimental affect on our already pot hole ridden roads

[Greenmantle]

Obviously the devil is in the detail.
If my current council tax is X.
Is the new Land Tax going to be 2X or higher.
Can't see it being less than X.

[Slow.Patrol]

At 0.48% we would be saving £1,000 a year on our council tax.

This could be hard on those renting in London.

Zoopla provide property values. How would this work on farms etc.

[macron]

Pachydermus said:

and do you think the landlords are going to suck up an extra few thousand in costs or increase your rent to compensate?

RENT WILL BE CONTROLLED, COMRADE.

[s1962a]

Slow.Patrol said:

At 0.48% we would be saving £1,000 a year on our council tax.

This could be hard on those renting in London.

Zoopla provide property values. How would this work on farms etc.

Yes. For a £2m property in London you'd be paying closer to £10k. Thats a 3 bed terraced house in parts of zone 2.