Proposed Wealth Tax

[BootsieBarnes]

It's been discussed in the press that the Chancellor is considering a one-off wealth tax of 5% on assets over £500k. Allegedly this is being considered as part of the March budget to make a dent in the huge Covid debt the UK is facing.

So in real terms that would be a £25k tax bill for someone who has assets valued at £500k, such as property.

What do you think about this? would your family be able to swallow a tax bill that size?

I'm not doing any research, I just read that and thought about the impact it would have on families living in houses in that price bracket.

I've put on voting as well for interest. I'm not actually sure where I stand on this as I can see both sides, so this is just an arbitrary allocation just for voting.

YABU - people with assets that big should pay

YANBU - that would be unfair

We would struggle, we live in an outer London Borough. DH and I both had small properties which we bought before the properties in the area really increased in value.

When we got married we sold those and got enough to buy our family home £350k. According to Zoopla our houses now worth between £800 - £900k, but in reality probably less as it needs so much work doing to it which we just can't afford to do and properties down our road just don't seem to sell, over the last 2 years 3 houses (in our road of 20 homes) have come on the market, none have sold.

I am a SAHM and he is a teacher, we never have stacks of cash around.

[quote Wenolikeexplodeythings]@WowIlikereallyhateyou

No. Some economists are expecting Sunak to introduce this entirely new wealth tax in his March budget. You'd pay 5% on assets if 500K or more.
The issue being discussed is how to get it as it cant be part of income tax, capital gains tax or inheritance tax so it will require a wholeload of new administration to sort it out.[/quote]
Upthread i wrote about this, but with a bit more reading i see that it is now off the table as WTF decided it was not likely to work.

An additional 5% tax on people who earn more than £500k a year seems sensible.

But the Tories would never introduce that - they have too many rich friends.

*WTC not WTF!

I'm not sure it would be political suicide for the tories. If it were a one off and spun as recovery/paying for the NHS/not passing the debt on to the next generation, they may end up with a greater political support base in the next generation.

The next general election is I believe in 2024, so plenty of time to recover politically if they have a clear route out of the current debt problem.

Grossly unfair. Why is it in this country that you get some people that contribute nothing and others who have worked their arses off and have built up a good pot of money/assets have to pay a fortune of their earned money in taxes? And I say this as someone who is probably at or just below the average UK earner end of the scale.

Jesus Christ, really?! I hadn't read that. If that includes the family home, pretty much everyone who owns in London will be screwed. A crappy two bedroom flat is £500k. And most people who live in them don't have a spare £25k knocking about just to help the treasury balance its books. How do they plan to support the thousands that will be made homeless by this ridiculous plan?

A housing asset is only the value of house minus mortgage. So would apply only to those with high value houses and no mortgage surely? If your house has earnt you 300k in the last 8rs and you haven't paid any tax on that unearned wealth then that's equivalent to a 37,000 untaxed salary. The fact that property prices have gone crazy in the last 8 yrs is a massive problem. I am sure some enteprising financial company would come up with some loan scheme against your assets for those without the access to cash to pay such a tax....

@BootsieBarnes

I'm not sure it would be political suicide for the tories. If it were a one off and spun as recovery/paying for the NHS/not passing the debt on to the next generation, they may end up with a greater political support base in the next generation.

The next general election is I believe in 2024, so plenty of time to recover politically if they have a clear route out of the current debt problem.

If I were them, I wouldn't want to be in charge right now. I'd want out and let some other chump take the blame to be honest. I'm surprised boris hasn't called for a GE yet, and hopes to lose.

A house is an asset. So in the north, you can get a bloody mansion for £500k. Thus is the price of a flat in some parts down south. The disparity is too great

@Sixgeese
So say your house is worth 650k you paid 350 profit of 300k
You will have to pay £7,500
Are you actually serious that you can’t afford that with roughly 300k sitting in profit. That’s considering you have a mortgage of 350
If you’re actually sitting on 650k then are you seriously saying you couldn’t afford 7.5k to save our country and it not be totally fucked up for the young

@blacksax only about 50,000 earn more then 500k in the U.K (according to HMRC) so you wouldn’t actually bring that much in with that proposal.

It will be 5% over the 500k from what i read. Someone correct me if i am wrong

Not only would this be a vote loser but it is totally illogical. A home you live in with a mortgage is not an asset.

There’s not a chance this would be proposed in the way it’s being described here.

It is £500k assets including first property, NOT £500k income.

Marinaloves, not on capital gain.

Cake I agree, seriously who would want the job right now!! Bet Boris looks in the mirror and thinks 'WTF was I thinking!

I think we are in such a unique situation at the moment that anything seems possible. Its interesting that Wow is saying it's now off the table when this pops up again in the news. Suspect there is a lot of toe in the water testing going on.

There's no way they could demand the payment in one lump, the bankruptcy rates would rocket! but a slow monthly drip feed of money into the treasury is probably what they are looking for.

Luxxlisbon, proposal is net of mortgage.

@hettie
Honestly
How would anyone be made homeless that’s ridiculous

Bootsie, the proposal was 5% over 5 yr, so 1% payable per year.

Wow that makes more sense

Bootsie, wtc thinktank say it is one of many proposals,but it is understood that actually implementing it and getting hold of the funds would require serious restructuring.

I actually think the idea of a wealth tax isnt crazy but 500k - i dont know, seems a bit low. whats an asset? Your house, the things in it, your cars, your savings, your pension? How does it work. Im married is half the assets mine and half his or both all of ours.

Better that than council tax. At least it's vaguely progressive. A better solution would be to raise income tax/inheritance tax/business rates or any number of other taxes that actually are based on finance.

Oh and why the fuck did they bring in a stamp duty holiday just at the point we need more public revenue? We're all subsidising that.

Millie, for jointly owned assets £1m.

I suppose it would be cost of restructuring Vs potential income as the deciding factor. I have a feeling they will do it, but who knows!