Reeves plan to tax houses over 500k PART TWO

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I am not the OP from the OP!

What do you suggest doing about it?

@BIossomtoes did you miss where I asked you first?

You saw the hysteria when a perfectly reasonable change was made that removed £150 from pensioners who’d never miss it, do you seriously think any government without an electoral suicide wish would touch pensions now?

They have touched pensions though by moving the age out. Agree with you re the hysteria of means testing winter fuel.

Life expectancy is actually reducing now because we have a diabetes and obesity epidemic.

Even better!

I agree no Government planned for the rise in pensions
They should have forced employers to pay in to private pensions a long time before 2018

That should have been introduced at least in the 60s

Significant worse - plenty of time to prepare, right? Do your bit.

Do I understand correctly that this would replace council tax? Or would it be in addition?

And those in rented - particularly social housing - would be exempt from any new “council” tax and wouldn’t have to pay anything at all? That would be utterly unfair.

So many of you seem to be related to rich pensioners. I find that bizarre. My grandparents were all council house renters and lived pretty much hand to mouth their whole lives. My parents had a modest income and I fully expect the care home fees will swallow the small house eventually. It’s not that I don’t know rich pensioners exist, I see some of them in the local market town to me having lunch abd shopping in the high end shops. I just don’t see this vast proportion of rich pensioners that get discussed on here. The amount of people related to older people who are permanently on a cruise is strange.

The proposal is that there will be two taxes. ‘Council tax’ will become a different tax that goes to local government and rises in line with massive current yearly inflation. Then for those in the south east that have houses over 500k as standard we will pay the first tax and a second tax which will go to central government.

After compulsory employer contributions in 2018 anyone born in 2000 will have the full benefit of that
( although obviously it’s the public sector that get top grade payments and not the private but nevertheless)
So
It won’t be till those 2000 births reach pension age that everyone will have the benefit of a decent private pension
Although private pensions are still not guaranteed or backed up by the state if there’s a crash. That’s another area still very much a problem
So 2070 then ( assuming the age doesnt rise after 2044 which it probably will )

The funny thing is my FIL was never rich during his working life. He was in the army and then worked managing properties for the army and veterans. He had engineering training in the army, but not qualifications. MIL worked minimum wage retail jobs. However they both had very good final salary pensions and now to very well. I would guess they have far more disposal income in their pensions than they ever did when they worked.

Good for them! I’m absolutely delighted there is someone out there keeping the economy going and using shops.

@EvangelicalAboutButteredToast
Only my FIL had a private pension as he worked on the railways. The other three ( inc my parents ) plus aunts and uncles didn’t. None of them worked for the state and all very much minimum wage.
So all they had was the state pension
My dad in fact thought he’d worked to 72 but he didn’t know his exact date of birth till probate sent us down a black hole and it seems he was actually born 10 years earlier than he thought. So he worked to 82
He did have a small Irish pension from working down the mines in Ireland until age 40 though. Nothing once he moved to England

If any of them had moved to free up money it wouldn’t have been possible due to lack of suitable and affordable properties
So I don’t know any wealthy pensioners

The tax is on property owners so rents would go ip

Students will be the hardest hit as their properties are exempt
That means higher student loans and a life of paying them off
and round and round we go

Noooooooo !! My council tax is going to be £4k next year. That plus a property tax - I read about £4k again on £700k house (and that’s a flippin’ 80s box where I live) - £8k a year? aaaaargggh!!

After compulsory employer contributions in 2018 anyone born in 2000 will have the full benefit of that

Do you realise how low most private pension contributions are?

It won’t be till those 2000 births reach pension age that everyone will have the benefit of a decent private pension

This has got to be a joke?

The additional tax is on the 200k over £500k
Where did you read these figures ?
There's a lot of conflicting information out there I could equally be wrong

Oh yes I’m well aware how low private pensions are. It’s still more than than nothing though
Im not saying they are great at all. I’m in the private sector and had 5 pensions when you had to get a new one every time you moved practice. That’s stopped now that new employers have to pay into your existing pension and can’t refuse. I’ve lost 3 of my pensions along the way in management fees because new employers insisted on theirs only
Only the public sector have good employer contributions

This would be replacing stamp duty so no, people would not be paying stamp duty when they bought their house.

Yes, it is very good for them. I am glad they can have a long and comfortable requirement. I don't however see why no one is allowed to bring their pensions without being accused for blaming the elderly

It also underscores why investment in childcare is so important. Society needs to encourage people to have children to keep paying for those pensions/ health/ social care costs!

What usually happens is the government leaks information about the next raft of tax rises pre-budget and when it happens we are grateful it’s not as bad as we thought so don’t react to handing more money over.

I just can’t see that they will make moving part of the process as they know directly they do that people won’t move. It makes more sense to me that they will go after the second home owners and holiday let owners first and all our holidays will go up. They’ll no doubt implement a version of the mansion tax and alongside that they will do a watered down version of the stamp duty change.

Other articles state the £500k threshold being sited is nonsense and will be much higher

Perhaps a far higher stamp duty for second homes and a 200% council tax throughout the country for them too

Then higher again stamp duty and council taxes for non residents

Doesn’t that pretty much make it a tax on London and SE?

Exactly
With the more expensive properties in those areas yes it is

It's not a tax for the sellers. It is the person buying the house that would be paying the tax.