Anyone else in the South East worried about Andy Burnham bringing in a land tax?

Well I don't agree with the fact that lots of people will have to sell their houses in order to fund CT increases.

Some might choose to. Others might partially liquidate through various options in order to fund it. The vast majority will have enough money to pay it.

A vanishingly small minority might be forced to if they have no equity and have just taken on a huge property with little or no room to manoevre in their finances.

I'd suggest though that if you are taking on a very large debt with no room to manoevre on a few K then your planning needs some adjustment.

No matter what the policy is you'll find a small number of individuals wanting to offer a sad face to the daily rage as to how they've been hit. What you won't see is the thousands that benefit from the increased taxation.

I don't share your views on IHT. Let's wait to see what happens if any changes on that start hitting the press.

I don’t agree with

‘ And the same people who complain bitterly against being taxed on housing also are the same ones who don't want to pay any inheritance tax’

We don’t know this and many people on the Inheritance thread see the new 10% as a good idea. As do I. It won’t after all effect our lives immediately or at all in fact

Meanwhile This will affect hundreds of thousands of families immediately !

I don’t agree with

‘ And the same people who complain bitterly against being taxed on housing also are the same ones who don't want to pay any inheritance tax’

We don’t know this and many people on the Inheritance thread see the new 10% as a good idea. As do I. It won’t after all effect our lives immediately or at all in fact

Meanwhile This will affect hundreds of thousands of families immediately !

You can borrow against assets, remortgage them or equity release.

Or the government could put a charge to be paid on selling, which I think was one thing touted when Reeves was suggesting similar. There is plenty of opportunity to be financially creative to partially liquidate assets.

I don't think it is ever necessary to sell, providing you have the wealth, which someone owning large amounts of assets does. People just lack of liquidity as an excuse as to why they shouldn't pay, and the lack of willingness of the government to deal with the liquidity issue just leads to asset prices being chased up further. OK if the assets are paintings or lumps of gold. Not OK if the assets are places that people need to live.

I would have less of a problem with people making huge gains on housing if they were to be taxed at some point, for example selling and on death. But there are huge tax reliefs for housing on death, and those that don't get them can also move on to trusts to avoid paying. And the same people who complain bitterly against being taxed on housing also are the same ones who don't want to pay any inheritance tax.

We need to tax productivity less and asset gains more.

You can borrow against assets, remortgage them or equity release.

Or the government could put a charge to be paid on selling, which I think was one thing touted when Reeves was suggesting similar. There is plenty of opportunity to be financially creative to partially liquidate assets.

I don't think it is ever necessary to sell, providing you have the wealth, which someone owning large amounts of assets does. People just lack of liquidity as an excuse as to why they shouldn't pay, and the lack of willingness of the government to deal with the liquidity issue just leads to asset prices being chased up further. OK if the assets are paintings or lumps of gold. Not OK if the assets are places that people need to live.

I would have less of a problem with people making huge gains on housing if they were to be taxed at some point, for example selling and on death. But there are huge tax reliefs for housing on death, and those that don't get them can also move on to trusts to avoid paying. And the same people who complain bitterly against being taxed on housing also are the same ones who don't want to pay any inheritance tax.

We need to tax productivity less and asset gains more.

@nearlylovemyusernameso what numbers do you have? Again I don’t believe everyone will be impacted enough that millions will be forced to sell up, plenty have seen mortgages increased by that the last few years.

Not sure what that has to do with free hours which I think should be universal anyway.

Masses of new tower blocks with properties now being touted as London …. Its not
Improved infrastructure and services etc have effected extg housing prices

I have no idea how much she bought for though. Looking back on sold prices it looks like about half the current improvement value.
Everything is relative. She wouldn’t be able to buy similar sized for less nearby so 🤷‍♀️

Given the fact that house prices have roughly doubled in that area of the country over the last 20 years, how much did they pay for it ?

@BrownTroutBluesAgainbut everyone wouldn’t have to sell up which is my point. Many people will be able to find the extra money. I said upthread that I understood older homeowners would be more disadvantaged.

@BrownTroutBluesAgainbut everyone wouldn’t have to sell up which is my point. Many people will be able to find the extra money. I said upthread that I understood older homeowners would be more disadvantaged.

It was me that worked out your parents new ctax but a good one to use I think based on your previous posts re your parents house.
ie
Its not just the landed oligarchs that will be affected

Heres another example
A relative of mine
Hertfordshire area

Bought 20 years ago
Ex council house now worth £560,000 but she’s extended into the roof to add bedrooms so this ‘improvement’ will be taken into account ( it’s automatic on all house sales so will be on this tax revision)
Based on similar sized props in the area it puts her house now at approximately £620,000

Her current ctax is £2050
Her revised ctax will be £2976

An inc of nearly £900
Now we can all say everyone needs to sell up, but everyone affected ( and my previous figure of 655,000 didn’t even go down to properties in the £600,000 range)
can’t all sell up.

£4560 and increasing year on year forever
The council build a new school or put a train line nearby your house would inc in value well over inflation and so would your
new ctax.

@BrownTroutBluesAgainbut everyone wouldn’t have to sell up which is my point. Many people will be able to find the extra money. I said upthread that I understood older homeowners would be more disadvantaged.

Yes, why should home owners always be treated like cash cows

@nearlylovemyusernameTo clarify Im
wrong to prefer that stamp duty is abolished because that is a benefit to me if I move in the future plus I think it’s prohibitive for younger people but the person who bought years ago and cannot afford to pay increased property tax & wants to keep the lower benefit they current have has the moral high ground?

@EasternStandardwhat would the new amount be on a 950k house for example? In my chosen area this would currently be 3.8k council tax and 40k stamp duty.

you see, you only support this because it benefits you, not because it makes any sense.

You moved recently and paid SDLT so you believe you will be exempt.
You want to move again and don't want to pay SDLT.
Your mum wants to downsize so she wouldn't need to pay SDLT.

The problem is that it's a choice to move. You can factor SDLT costs in and make a decision. Being forced out of you home because you can't pay is very different.

And I'd be careful in your shoes - if you or your mum want to downsize, than the lower end of the market will be hellish

@BrownTroutBluesAgainwell 8k council tax was the figure someone gave for my parents house which is 1.7m. It won’t be the figure I would have to pay or millions of others.

Why would many have to sell at a loss & be in negative equity?