Council Tax bands

It’s a way better system than council tax. Renters wouldn’t have to worry about the cost of the house, the rent would be set as it is now and landlords take on the risk as any speculative investor does. The landlord is responsible for paying tax.

Why should £20m penthouses in central London pay less tax than 2 bed semis in Wolverhampton? If the country wants to tax wealth, this is the easiest way to do it. You cannot hide your house.

The vast majority of people would actually pay less under this system and the London housing market is totally insane, it could do with a correction…. The average salary in London is 44k but the average house price last year was 708k.

A thing that shocked me was that our council tax was reassessed when we moved in because the house had been extended. I didn't realize council tax didn't increase immediately if you extended, until the new owners moved in.
Our house was a band E while on the market which I thought was fair. But when we bought it we'd been here a month, found massive renovations necessary (££££) then a letter from the council telling us we were now band G and had to pay loads more 😭
It's taken me a while to like my house...

Why should someone with a more expensive house pay more for the same services though? We don't charge anything else like groceries or cost per energy unit based on perceived assets or income.
It should be a set amount for everyone, with the same council tax support currently given to low income households.

It means that some London councils packed with valuable houses would have insanely high tax takes, poor councils would get hardly anything.

A wealth tax on all housing it not related to council tax in any way.

It is hard enough to rent nowadays (too many tenants and not enough properties) without potential renters having to worry about the actual value of the place too.

Why does this matter? That’s actually a feature of the design. A 20m house should pay significantly more than a 1m one…

Owners pay.

This is how it’s done in pretty much every OECD country except the UK. It gets passed on in rent typically.

This doesn't work because house prices are not even distributed.

How would your last paragraph work with people who rent?

What about renters? Clearly you think everyone owns!

No need for bands. Just do it as a % of house value.

• Abolish stamp duty (this is a ridiculous tax that stops people moving)
• Abolish council tax.

• 0.5% up to 1m
• 0.8% above 1m

Houses valued when they sell or based on comps then move with the market. People can request valuations if they think they are unfair.

Anyone who bought in the last 3 years gets a tapering credit from the stamp duty they paid.

If someone cannot pay the tax but they have equity in their home, they can pay the tax with equity upon death or sale (with interest). There is a similar scheme for people who cannot pay care fees where councils pay and they get paid back later.

Buildings are easier to tax. You know where they are, and they stay there.

And no, it wouldn't be fairer, because poor people would be paying the same as rich people.

The Poll Tax was so unpopular, it brought down a government.

I live in a HA house, they chose it for me, I have no say in where/ which house I live in and it has nothing to do with my income.

Good luck with that! Look at the outrage re means testing winter fuel payments!

Obviously it’s ridiculous that my parents pay less CT than I do despite my home not costing 2m but 🤷🏻‍♀️

It would be fairer, even if not popular. More people cost more money.

You do realise you are proposing to reintroduce the Poll Tax?

Yes thus is what I think. It should be per person.

I would prefer local income tax, however that is not going to happen. So a revaluation would be better than no change.

Awww, you love spending other families' money.

Can't earn your own?

Its really important to realise that BANDS
do not equal CHARGES

The range of "Band D" charged is enormous across the country.
(less than £800 in central London, over £3000 in the Rural Marches)

Bands SHOULD be by value - to create a solid benchmark of the properties in an area
what the council CHARGES to each house in its area will vary depending on local requirements

(can you tell I'm rather a council tax stats geek)

It definitely should not be by price. Here on the fringe of London (one of the cheapest parts of London), ordinary 3 bed semis would be G or H under the OPs plans.

It should be reassessed as there are so many anomolies. When I lived in a fairly large 4 bed house in an inner London borough it was band D. Now I live in a cheaper, smaller house it is Band F.
I am one of the great many people who are asset rich, cash poor and my income would not cope with a big increase in Council Tax. It should be largely based on the square footage of the house, with maybe an increase for off street parking, a garage and differentiate between flats, terrace, semi, detached.

The RELATIVE value of the house is relevant.

Band G Council Tax in Westminster is less than Band A in Hartlepool
because there are lots of Band H in central London
and hardly any in Hartlepool

No, but they are more likely to be able to afford it. It's redistributive taxation.

@OrwellianTimes
House resale value is one of the few unavoidables in the tax system
its very hard to game so an excellent basis for charges.

Using modern big data techniques and Land Registry data for the last 35 years
it would be entirely possible to
electronically reband every UK property
to current valuations
add in 20 more bands
retaining the same fee level for 85% of properties

there just needs to be the will at DCLG and the VOA

Why is the value of the house relevant?

Does a family with 2 children who live in a house valued 2 million use four times more council services than the same family of four who live in a house values at half a mil?