Latest mansion tax should be on top % homes locally not nationallu

That's where you're wrong as wages are far lower up north but prices in the shops, heating costs and petrol pumps are the same.

Not really if you think about it. Someone buys a 3 bedroom house in Brixton in the 90s and someone buys the same house in Byker. Neither do much to the house. In 2025 the London house will have significantly increased in value through no effort by the house owner. Unlike the Byker house. Plenty of people have been made millionaires (on paper. As in they have a valuable asset they can sell if necessary and pocket the equity)in London not by work but simply by where they bought their house. Fact.

I'm not chippy by the way. Such is life. And a mansion tax is a bad idea.

They should just split the top band in 3, just like they did with a* for gcses!
I’d guess many people with a £700k London home have much less at the end of the month than those up north with a £400k one.

@hellohelga“lol no one has a £1.5m mortgage”. You’re obviously living in a bubble. I’ve got friends who live in a £3m house and have a £2m mortgage. And we don’t even live in London.

It makes a lot of sense to remove stamp duty and have an annual % tax on property values.

This, they manage it in other countries

There should be high/punitive property taxes imposed on foreign owned property

If you don't live in the uk you don't need to own property here.

Capital gains should simply be classed as income and taxed accordingly. Small business owners already get reliefs via BPR.

If you are talking about the disparity in house prices between the south (huge rise) and north (not much of a rise) then it's unearned if you bought a house and its gone up massively in value over the years without yoi doing anything. You may have to.buy a house which will be more expensive than a northern house but you will have equity that a northerner can only dream of in your house.

It's the main regional.wealth inequality and it's a disaster for the country as a whole. I'm not a lefty or chippy btw just stating facts. A northerner cannot buy an equivalent house for the same price down south sadly. But as the OP said, she could sell her ordinary house and buy a 10 bedroom castle up north. Slightly sticks in ones craw but it's true.

Anyway as I said, the mansion tax is a bad idea anyway.

And to the point of taxing equity rather than value - I totally agree. Someone with 100% equity in a small house is far better off than someone paying a mortgage on a big house.

Yeah, let's tax people who are not particularly wealthy but have worked for 25 years to pay off their mortgage and almost have some breathing space. That'll be popular 🤪

If tax is put on £2m properties, who will buy yhem when they go up for sale? If they prove unsaleabke, they won't be worth £2m any more. Another chip towards destroying the economic wellbeing of the entire country and not just the rich.

Last time this was threatened we moved out of London and bought a house that done up is worth less than £2m. That was nearly eleven years ago. Price increases in the last 11 years have been minimal compared to the orevious 10 and the 10 before that.

The market is beginning to correct. It's always cyclical. The last time was 1989/94. It doesn't need this level of misery imposed upon it althiugh I think there wouod be merot in scrapping stamp duty for downsizers. Space or value though?

It's not a policy, it's an idea.

Following your logic, how do you define share growth?

Meanwhile, tax net asset value, and people will simply leverage up. Large houses will be split into separate dwellings/flats etc.

Labour do not understand the law of unintended consequences.

What an odd comment.

Yanbu. What you get for £2m in the south can be way less than what you get in the north. Plus if they introduce it, the cap can be say £2m, but in a few years it will come down and they will sting more people in the south. It’s ludicrous.

Firstly, it's not Labour policy, more like paper talk, but your idea would only work if everything else was equal such as good public transport, education and other general services. There's a reason why people live in London and why the house prices are so high.

In the US (where almost all states & counties have property tax) it is done by assessors, normally updated every 4 years. Fair market value. No different (say) to a home report in Scotland, or a mortgage valuation in England. Owners can dispute the valuation if they think it is wrong.

Would this make people with land sell to developers to turn one house into an estate ?

@wisbech who would do the valuations? How would that work?

It makes a lot of sense to remove stamp duty and have an annual % tax on property values.

The older retired household that bought and live in their property for less than £50,000 in the Eighties may not be able to afford this yearly tax. They are part of the local community, so what would happen to them? This tax like VAT on school fees seems to create an elite class, which seems an unexpected byproduct of Labour policy.

But people do move around the country so property values aren’t just relative to the local market. You’ve said it yourself, you’ve got the option of moving elsewhere and buying a bigger house or releasing a lot of capital. But people in other regions can’t afford to move south.

I agree they need to tax the equity not the value, but I think really this needs to be total wealth not just house value.

I could imagine a system where all wealth is registered. Bring in a national ID card, hold that number against every bank account, loan, credit card, land registry, company, share etc and make them all report to HMRC for wealth tax. Add that people can see their spouse’s records online- would save a lot of stress re hidden debt/hidden funds on divorce.

I don’t think the regional idea works at all, it would drive richer people out of poorer areas, which is the last thing poor areas need.