Discussion
"Labour will re-introduce the 10 pence starting rate of tax scrapped by Gordon Brown in 2008 if it is re-elected, Ed Miliband has announced.
Mr Miliband said it was a "very bad mistake" to get rid of it and the move would send a "clear signal" his party was on the "side of working people".
The move would be paid for by a new "mansion tax" on £2m properties, he indicated in a speech in Bedford."
How does a mansion tax work? Is it just a new Stamp duty level or is it an annual tax?
Does it take into account property inflation, so if you buy a house for say 1.75 million a few years latter you could be hit with a mansion tax bill?
Mr Miliband said it was a "very bad mistake" to get rid of it and the move would send a "clear signal" his party was on the "side of working people".
The move would be paid for by a new "mansion tax" on £2m properties, he indicated in a speech in Bedford."
How does a mansion tax work? Is it just a new Stamp duty level or is it an annual tax?
Does it take into account property inflation, so if you buy a house for say 1.75 million a few years latter you could be hit with a mansion tax bill?
How would a mansion tax take account of regional variations in property value? If you're sat in a (say) £2m pad in the south east, the equivalent sized house in the north east is not going to be at the same value. Assuming both are the same size and meet most peoples definition of "mansion", one is required to pay a tax whilst the other isn't, even though they are identical properties. Grounds for a discrimination appeal to the ECHR I'd have thought?
fido said:
Totally unworkable. £2m is a detached house in Putney. Hardly fair to tax someone who just happens to live in a normal house but in an expensive area. No doubt Ed Chavez Balls is behind this idea.
Not unworkable at all, unfair yes but certainly not unworkable they will collect the tax, from London mainly I would imagine even my humble abode would probably be worth £2m in some areas of London which is rediculous. Mermaid said:
Inspiring.............not.
This will kill off a lot of work on property extensions if the added value will tip it into the £2m bracket at some time soon.
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.This will kill off a lot of work on property extensions if the added value will tip it into the £2m bracket at some time soon.
Victor McDade said:
I don't think I'll ever be in the position to live in a £2m+ house however this policy just stinks of the politics of envy from Labour.
Yeah they would never dream of dropping it to hit those bds that live in £1m housesAnd what about those bds that live in £0.5m houses
And then there is those bds that live in £0.25m houses
Another well thought through plan. After they've paid for the army of surveyors required to value any properties that may be worth say anything over £1.75 million, an administration team and an independent appeals panel there wont be any money left over to pay for a tax cut anyway.
That doesn't even cover how property rich and income poor pensioners are going to be able to pay the tax, will they be excluded? what if they can't borrow against the property to pay the tax they can't pay from their income, will the government kindly step in and lend them the money to be paid after death or will they be expected to sell up and move, of course they will get a lot less for their property now because it's got a new tax on it!!
That doesn't even cover how property rich and income poor pensioners are going to be able to pay the tax, will they be excluded? what if they can't borrow against the property to pay the tax they can't pay from their income, will the government kindly step in and lend them the money to be paid after death or will they be expected to sell up and move, of course they will get a lot less for their property now because it's got a new tax on it!!
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