to think the idea of a mansion tax just penalises London and the south

(586 Posts)
Redpipe Sun 15-Sep-13 14:35:44

I will probably get flamed for saying this but I don't believe that owning a 2 million pound house automatically makes you rich. Certainly in London a 2 million will not buy you a mansion, more like a terraced family home.

AIBU to think that the idea just penalises people in the south?

Why would those on super high incomes move out of the UK when they won't even countenance moving shock oop Northshock?
If such as "Voiceofraisin" have an international client base, they would most easily avoid the mansion tax by moving within the UK.
No need to skip country.

merrymouse Wed 18-Sep-13 18:10:27

Actually raisin did suggest other ways to increase tax revenue from rich people - just ones that might be more efficient.

VEBott Wed 18-Sep-13 18:22:49

Widows in the south could be forced to move by this measure. At 80+ that sort of stress and upheaval can be a death sentence. Seems a bit unfair to set the bar so low. £5million would be more reasonable. £2million is just a terraced house with a scrap of garden in central London.

Inmysparetime - I think you are missing the point about why people like VOR would be leaving the country, it wouldn't be just to avoid paying a mansion tax but because they disagree with the way taxation is working. It's all very well to say well 'you can afford it' or 'the rich should pay more'...they can and do pay more but, like it or not, everyone has a point, somewhere, at which they feel enough is enough with regard to taxation.

Crowler Wed 18-Sep-13 19:01:53

I don't think that the average employed person who feels the pinch of this tax will have the option to move out of London.

Perhaps VOR is a member of the more super-elite class that moves easily among global financial capitals. But I don't think these people will really be bothered by this tax, frankly.

I agree Crowler.

Sorry - to clarify, I agree on the average employed person point, not necessarily on your second. There could well be many like VOR who may be perfectly able to afford to pay this tax but resent it to such a degree/regard it as the veritable straw that they do indeed move and take their business elsewhere, leaving behind a redundant workforce and huge gap in fiscal revenue sad.

Redpipe Thu 19-Sep-13 09:48:59

I totally agree with Cowler and VOR

Having thought about this thread and all the arguments I think the main problem is that the mansion tax is not a 'mansion' tax at all. It is really an extra income tax making assumptions of a persons yearly income and overall wealth based upon the price of their property.

If it was a mansion tax it would be added to stamp duty or inheritance tax and applied when sold or bought.

A property valuation bears no straight line correlation to yearly income and unfairly discriminates against the south east.

Yes, people can sell their homes and move much further afield and live a richer life but is this right? London is already becoming drained of it's mix of residents. Do we want it to be for the super rich only. These people pushed out of London would just move to the M25 corridor and would then that area would become unaffordable for most and push those already commuting even further out.

Fundamentally it is wrong to assumes someones wealth based solely on the price of the property they live in.

ubername Fri 27-Sep-13 23:23:00

Sell a chunk of equity in your property and use it to pay the tax. This will also have the benefit of reducing the equity of the home you live in (to you / your estate) so that you can rejoice in the same feeling as those lucky northern so and so's who enviably don't own extremely valuable assets.

rallytog1 Sat 28-Sep-13 09:12:23

Many in the South East have sat on huge increases in the value of their property which they have neither earned nor worked for. Through this, they've been able to release capital for home improvements, move up the housing ladder more easily, buy investment properties and much more.

Why shouldn't they be expected to share some of that un-earned wealth back into the economy that made the huge price increases possible?

BrownSauceSandwich Sat 28-Sep-13 10:42:30

Doesn't mean you're rich. What a load of shit. At the extremes, you might have a person with a £2M mortgage, who must be pretty fucking rich to be able to pay it, or you might have a person with £2M equity in their property, a small proportion of which, in the case of your elderly neighbour, could be freed up to pay the tax, if necessary. That's rich by most people's standards.

Tell me, have those people who bought houses in the south and London done any more, worked any harder to "earn" these ridiculous windfalls than people who bought similarly priced homes 50 years ago in the north? No? So why not tax them more heavily on their gains? They're still winning overall.

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