Jeremy Corbyn wants to impose lifetime gift limits on children of £125,000

[ForTheLoveOfDoughnuts]

So we pay tax on what we earn. What we buy. And now this.. what's the point of working hard to help out our kids, for this to even be considered. Or AIBU?

As for the Corbyn bashing comments about him supporting Cuba - I could not, two fucks, give.

Our governments support all sorts of shady disgusting regimes. Saudi Arabia being one of them.

But everyone turns a blind eye to that.

I don’t like JC but I support a society with more ladders for people to climb.

The conservatives will never ever oversee any move towards equality. They like the rich to get richer and the poor to serve them.

A fairer society is a happier one.

More ladders? Like what?

I wasn't rude about you personally i said what you were saying was a lpad of rubbish, the doctrine to which you obviously subscribe.

Iggly - some sensible alternatives:

1. Reform the business rates system. If you must have a tax on doing business then it shouldnt be based on floor area but annual turnover. This would also bring in the big companies like Amazon as well as the low space tech companies and those that have no office space but lots of work from home.
2. Any homes that arent your principal one that you live in - so holiday homes, rental properties etc should have double or triple council tax payable on them by the owners.
3. rent controls
4. Section 106 agreements so loved by local Government planners should always include a social housing levy commensurate to the scale/cost of the development. so want to build a big out of town supermarket? thats x thousands towards building affordable rented homes in the area.
5. Remove the VAT threshold to stop businesses that keep their turnover under the threshold (and most do this by taking cash in hand!!)
6. Ban cash in hand transactions
7. Reform the domestic rates system. yes, if you own a 5 bed house you should pay more even if you are an old person living in it on your own. if you dont want to, then downsize.
8. National living wage - stop using the benefits system to subsidise useless low paying employers.

i could go on with more ideas but suggest this would get very boring.

Those are all great proposals but they don’t address the issue of massive property prices and how to unlock that.

Having briefly read this document, what would happen to someone who inherits a property say for £150k, higher rate taxpayer and already utilised the £125k. They would have a tax bill of £60k but potentially no means to pay the bill. You can't get a loan for that amount........ Until the property is sold, there is no cash. Depending on where the property is, that amount could be considerably higher....

Depending on the timing of the death in the tax year, the property couldn't be sold in time.....(assuming of course, it was to be sold anyway)...... Under the current scheme, IHT is paid before distribution of bequests. Better for HMRC, and the recipient receives it post tax deduction so no complications. You could have a bereaved person facing a massive tax bill and no way of paying it.

How would a tax on turnover differ from corporation tax on profits?

mummymeister

2. Any homes that arent your principal one that you live in - so holiday homes, rental properties etc should have double or triple council tax payable on them by the owners.
3. rent controls
4. Section 106 agreements so loved by local Government planners should always include a social housing levy commensurate to the scale/cost of the development. so want to build a big out of town supermarket? thats x thousands towards building affordable rented homes in the area.

All considered and possible solutions offered by Monbiot’s report.

Maybe you should try reading it.

An issue to combat massive property prices are to outbuild supply, there is cross party as well as business and bank interests in not letting this happen.

There isn't a government even in waiting who wants to be in charge when the property bubble bursts.

The only way now is to slowly increment changes, the tories have actually started to see second home owners as a taxable source so the thin end of that wedge is in, giving local councils more rights to over rule nimby's is another.

There is cross party support for keeping the bubble afloat so lets not pretend its one sided. Also look at the recent outcry during the last GE when Corbyn was targetting the ~80K wage to help suppliment his "fully costed" ideas. It wasn't just old white tories who was up in arms, they where joined by many metropolitan life long labour supporters.

Iggly - lots of people buy second homes because its a cheap place to put your money with very little outlay especially when savings rates are so low. its the equivalent of sticking it under the mattress. you buy a second/holiday home, you rent it out a bit, use it a bit yourself and then sell it on for a big profit and usually in an area where locals cant afford to buy. But, if every year you had to pay out, I dont know, £6k or more on council tax then you would think twice about buying this house and many people wouldnt. More supply for the same demand and prices will reduce.

Zipee. Tax on profits doesnt work and never will. Look at the number of companies that you know of with massive turnovers who then dodge and weave the money so that at the end of the balance sheet the profits are virtually nothing. I pay more tax than quite a lot of huge, well known names. Yet, my turnover is tiny in comparison. Turnover reflects the amount of "business" that you are doing. Profit does not. ask any accountant they will always advise you to keep your profit as low as you can by redirecting moneys to repairs and maintenance, stock, vehicles etc.

Continuityerror - I do not disagree with the quoted report wholesale. I disagree with the £150K limit. Perhaps you ought to read my thread replies.

There is currently massive house building all over the country, most of it hideous. Concreting over the countryside and destroying nature.

Stop all immigration 300,000 per year is not sustainable if we want countryside left.

There is plenty of brownfield sites available.

I note also in that report, that they would tax equity release. The presumption being that it's tax avoidance, whereas the only people I've known consider it, was because they needed it in their lifetime. Taxing it, isn't necessarily going to help them.

How would a tax on turnover differ from corporation tax on profits?

It wouldn't and doing it on floor space is just another way for regulations to allow a 1 room office headquarters to pay the tax instead.

Having briefly read this document, what would happen to someone who inherits a property say for £150k, higher rate taxpayer and already utilised the £125k. They would have a tax bill of £60k but potentially no means to pay the bill.

They would have a tax bill of £30k (proposal is tax at 20% on £125-500k).

The Resolution Foundation suggested that the Government could consider expanding the scope of the yearly instalment option (currently only available to those who decide to live in the property) so that inheritors have time to sell or mortgage an inherited property. Currently 88% of inherited properties are sold on.

Sorry lurker but a tax on turnover wouldnt allow this. its irrelevant how much office space you occupy and its based on how much "business" you do.

Zipee - the simplest explanation is that turnover is what is made before any bills ie: goods bought for sale in shops, expenses etc are paid. Profit is the amount left after said bills are paid. I won’t even try and explain gross and net profit as I fear it might be beyond you but this question does explain why you support this stupid idea and Corbyn. You have no understand of actual economics

Tax on profits doesnt work and never will. Look at the number of companies that you know of with massive turnovers who then dodge and weave the money so that at the end of the balance sheet the profits are virtually nothing.

But turnover is not profit?

So just in case you still don’t understand the difference - a bill before profit would just add to the money a business would need before it could invest in itself which could result in its going under. A bill on profit would at least mean it could sustain itself before the tax was levied

Thats right. Turnover is one figure. profits is another. at the moment people pay taxes on profits and not on turnovers.

Alligator sums it up very well. I know of businesses who turnover several million yet show profits of only £20 - £30K. Not because they lie on their tax returns but because they utilise every loop hole. and its those loop holes that I want to see gone.

mummymeister

I have read your replies, you’ve been complaining about how unfairly second home owners are currently treated. Monbiot addresses that.

I personally think that a lifetime allowance of £125k (not £150k) could be low (see the rates applicable in Ireland for instance) but as this is just a proposal it’s the kind of thing that would be open to debate and revision.

However, I’m sure a lot of people in social housing earning an average wage with no potential to inherit large sums or to pass on property might think differently.

He really is a prick. What an idiotic idea

More supply for the same demand and prices will reduce

Only in areas where people buy second homes. Those who buy as landlords - they’ll just pass the cost onto renters.

I won’t even try and explain gross and net profit as I fear it might be beyond you but this question does explain why you support this stupid idea and Corbyn. You have no understand of actual economics

How patronisingly rude.

Tax is charged on profit to enable businesses to make reasonable claims for expenses - yes of course they then have loopholes but they’d just find a way of suppressing turnover figures. You’d have to be naive to think otherwise.

In terms of housing supply and demand - there are enough properties, there just aren’t enough cheaper ones. Because people can’t face the idea of taxes on properties or any other measures to unlock those prices. That’s why there’s such uproar at this proposal.

So you want a tax on turnover?

Yeah good luck getting the international community to agree to that.

Look at the resistance from some of the more socialist EU countries stalling the EU's plans to take on Amazon, Google etc, that's before we get into the more traditional multi nationals and how to make the tax resonably fair so that the likes of Amazon and Google can rise from nothing invest heavily and become industry leaders.