Reeves plan to tax houses over 500k PART TWO

It’s because they want them dead as they are deemed to be useless/pointless - except of course if they offer free childcare.

They should sort out the 100k cliff edge

this will create a cliff edge at 500k but living in London I have no way of avoiding this if I ever move. if I rent I’ll be bearing the cost anyway.

I’m also fed up of the increase in taxes. I went part time when I had the kids and would like to go back full time but it doesn’t make financial sense when I take childcare costs into account - I’m paying out more than the increase in net. So I’ll wait until my kids are older. We moved for DH work and rent out our house as we hope to go back - after tax we aren’t really making any money on it and if we didn’t plan to move back we would sell. It’s a real hassle and that’s with very good tenants.

and every year I see the tax I pay increase and below inflation pay rises for many years. I feel like I’m a peacock stuck in a fence with more and more of my feathers being plucked!!

You are completely correct they put in sweeping changes fuck it up as they don’t understand how people think ans behave and then some other party is going to have to reverse or clean up the mess.

While the country is on its knees, the that party gets blamed, and round and round we go again.

Yes it’s always the middle earners and the thrifty who are punished

Nobody’s blaming pensioners or deflecting @DrPrunesqualer It’s just acknowledging, that the money for pensions, pension credit etc comes from the welfare state.
How will the welfare cost, for pensioners naturally decline? when pensioners are living longer.And there’s actually more pensioners, today than ever, which will continue to rise.As you said birth rates in the uk are low (the lowest they’ve ever been) Yet the uk is over populated, just under 70 million.How about that being looked at, addressed.

I was responding to the previous poster. Not discussing pensions but responding to why it’s always brought up when the high welfare costs are mentioned.
ie to deflect from a much more real and growing problem
The welfare cost of pensioners will decline as their numbers do, naturally. The cost of other welfare benefits are growing exponentially despite our falling birth rate.

That needs to be looked at
Falling back on blaming pensioners doesn't solve the long term issue

It's not a tax on top. It is instead of stamp duty. And you would only pay if you downsized to a property over £500k

It’s not deflecting.Where do you think the money comes from, for pensions, pension credit, disability living allowance and other pension related benefits?

Put a special tax on constituencies where there was a majority vote for Brexit. They said it was a price worth paying. Time to pay it.

It’s deflecting from the long term problem of welfare costs.

That’s not cost effective for HMRC
They’ll just base it on when you bought it.
If they revalue without a sale it won’t be that often simply because it’s too expensive. Perhaps once every 20years if you are still in the house.

Labour won’t bother to work out the details though. Why bother. They never do .

By then, a new government from another party is formed and reverses this rule. All back to square one with not much improvement.

There are a lot of cities in the world with very expensive housing market and they will have decent salaries and productivity economy in those countries. Why high housing price is the source of lower wages like someone mentioned in the first one said. Like London, many big cities in the US have housing crisis but that has not stopped salaries to go up.

The real reason of slow economy is lack of interest in stem education compared to global counter parts, not enough jobs in technology, and non existent business incentives.

Only once it’s sold. If you don’t sell
you aren’t liable to this new system

Not the asking price. The sold price

The value is only needed when you buy. So whatever you pay for your property when you buy it is the value

I hadn’t thought about retirement and how on earth anyone will be able to pay this on pensions? It just gets worse whatever angle you take on it.

I can see all of this talk and chat stalling the already awful housing market sub £500k as why would you pay stamp duty now when it maybe removed in 12 months?

Im buying a small field now so I can plonk my static caravan on it when I’m an old lady, if anyone wants to join me.

You’ll have to wait for a generation though because no one will have factored these costs into their pensions so they’ll all stay put. They won’t sell because once they do they’re subject to the new tax

For those in a generation they’ll be aware of the taxes and be able to plan for the costs. Therefore nothing will be any different to how it is now
Some will downsize and others wont

Meanwhile the Govn won’t raise the thresholds because we know that’s what they do and more people will be pulled into much higher taxes

That won’t take long

Exactly

I didn't say anything that implied contempt. I was just pointing out that when people talk about cutting the benefits bill they often don't realise how much of the expenditure is on pensions and related benefits, and the financial implications of that.

And I'm a pensioner myself.

If you’re a regular on MN you’ll know that, this doesn’t just apply to pensioners, MN has contempt at the disabled and lump them in with the unemployed who can work.Pensioners, don’t just get their pension, many get disability living allowance, which isn’t reassessed, as well and pension credit, housing benefit and no not all have paid into the system.

Agree with you. Posters who are defensive about the ever inflating welfare bill tend to single out pensioners for some reason.

@reversegear exactly- we will all be leaseholders with the government as freeholder. There will be no retirement as how will we continue to pay property taxes on mortgage free homes? The taxes rise in line with inflation and who knows what else they’ll add to it in the future. Look at the US- they protest and protest for property taxes changes. It is causing major problems over there.

if the Onward Report isn’t followed in full, and eventually we will all pay the property taxes regardless if we’ve been living in the same house for decades, then the only positive I can think of is that it will encourage older people to downsize to free up family homes for families.

Which means people like me in a £850k home simply won’t ever move, unless I’m downsizing, so the market will totally stall on all homes above £500k.

Previously, l worked as a support worker, supported people with physical and learning disabilities to claim pip, as well as giving every day support.The person has to have recent medical supporting evidence to support the claim.They have to prove they have a disability and it’s on going.They get reassessed every 2-3 years, which is basically going through the whole process again of reapplying. Many people don’t claim because it’s so intrusive and very stressful.
It’s laughable, how some people think it’s so easy and just given to people, when that’s really not the case at all.