Reeves' plan to tax houses over 500k

[FridayFeelingmidweek]

Just been reading news about Reeves's plan to tax https://www.theguardian.com/money/2025/aug/18/rachel-reeves-stamp-duty-property-tax-council-tax

AIBU to already be worrying about living in the south east? Surely this will force people either to never move, or move away from SE/London.

I'm glad that there is finally something that isn't negatively affecting areas outside the SE but does she actually understand that 500k isn't much down here - 3 bed terrace at best.

75% tax on what exactly?

Badenoch and Farage aren't in power though are they? So they don't really need to. Labour are in power so they are the ones who have to come up with solutions

Why didn't you mention Lib Dems as not having a solution either?

I guess this is "unfair" to the people who have already paid their stamp duty. Say "Mary" moving to London already has moved and forked out £40k in stamp duty and then will have to pay it again annually. No easy solution to that in the transition period.

I wish the focus would be on growing the economy instead of increasing taxes on individuals again and again. That would benefit both the country's and the individual's budget. Forcing people to increasingly have less money just perpetuates the issue as noone wants to spend money.

No we wouldn't be far better off but Brexit is costing the UK approx 42bn a year and is the direct cause of millions of migrants/dependents coming to the country, even now net migration is 450k per year.

Is also one reason companies are relisting in NY etc, thats damaging the 'city.

Hence the need to raise taxes so much.... which the Tories also had to do.

Drawing down the pension. As you perfectly well understand. Can we please stop making this personal? It’s getting tedious.

im trying to think how she could make herself any less popular. Revisiting the poll tax? Window tax? Bringing back the tea tax? Apparently in 1535 there was a tax on beards - that would raise some capital.

I think it is a good idea. It will potentially impact us but something has to be done and it might help slow the ridiculous house price boom.

@EvangelicalAboutButteredToast 🤣

🙈 ok @blossomtoes I’d take that up with the Institute of Fiscal Studies, who published that information.

The article I read about this said that the tax wouldn't apply retrospectively, i.e. would only kick in when someone moves house.

Just because they’re the IFS doesn’t mean they can’t be wrong. They should have checked their facts.

https://api.parliament.uk/historic-hansard/commons/1975/apr/21/23-income-tax-charge-and-rates-for-1975

Hence my post about decimating the housing market. Slow hand clap to her.

Sorry - the above post is a reply to this one.

I don't think there is any detail.

Nobody knows what is being proposed.

I don't understand, pay 75% tax on what?

That's not your average 3 bed terrace. It's a massive four floor property with one rather large bedroom not counted as it is being used as an office.

I still think it is overpriced though. I'd be interested to see what it actually sold for rather than what the asking price was.

Its not really a proposal. Its the normal thing governments of all colours do which is put an idea out in the media and watch the public's appetite for it.

They wont get any clarity from this thread!!!

But it's instead of stamp duty.

The idea - by the way - comes from "a centre-right think tank". Make of that what you will.

I would expect the main parties hoping to form the next Govt to at least show some idea how they would govern differently... LD's do have policies, hence no need to inc them....

The next election is, at most, 4 years away but could be at any time.

I’m sorry, but you are so wrong it’s hardly worth a convo.
Let’s respectfully disagree.

And again. What is the likelihood of a government bringing in a tax that might happen in the future that people can avoid by not selling. Not likely. Outright lie. As a sop to people who the government doesn’t lie. Baffling

Your pension when you draw it down - you know, the thing you were talking about in your post that I quoted. 🙄

Agreed!

And all the data from polls show Labour is in trouble. Can't come soon enough!
But none of the other parties have to pay out plans until it's called.
Labour however have a country to run now and obviously don't have a clue either!