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Share your dilemmas and get honest opinions from other Mumsnetters.

Reeves plan to tax houses over 500k PART TWO

442 replies

soupyspoon · 19/08/2025 15:23

I am not the OP from the OP!

OP posts:
Thread gallery
12
SadTimesInFife · 19/08/2025 19:19

nearlylovemyusername · 19/08/2025 15:32

Grrrr, typed a post on Part I only for it to be full

So
What does the UK spend on welfare – and how much will it rise?

"spending on disability benefits is forecast to jump to £56.3 billion by 2029/30, up from £41.4 billion in 2024/25.
Spending on Universal Credit will reach £99.0 billion, up from £87.8 billion."

It's £26bn annual increase in four years time. This is UC and PIP and child benefits, not pensions.

In parallel:

Ed Conway: Something odd is happening in the markets - with no compelling explanation | Money News | Sky News

UK borrowing costs are rising due to external factors, no matter what RR does

Isn't this obvious that it doesn't matter what we do with taxes, we can't sort this country out until welfare system is sorted? it's such a basic that tax receipts fall after certain point of hiking rates, e.g. here
Capital gains tax receipts fall after big cuts in allowances

Bring back the workhouse!!

Or copy Singapore.

SunnyPrague · 19/08/2025 19:20

PaddlingSwan · 19/08/2025 16:06

The welfare system and the NHS have grown exponentially to cover areas that they were never intended to address. Any attempt at reducing the present scope of either, will be perceived as "cuts".
If I were to play benevolent despot I would look at increasing personal tax allowance to GBP24k for everyone. Those on benefits would get the 24k tax free and nothing else. I would also ensure that married couples (blanket term to include those in civil partnerships), where one half was not working, would get the full 48k tax free sum.
I would then tax all earnings above the 24k at 20% blanket rate across the board. No increments or complicated structures.
I would reduce NI contributions to a rate that covered a minimum state pension on retirement, the age for which would have to reduce anyway once all the boomers have died off, so let's set an arbitrary age of 63 for both women and men. I would encourage private pension provision.
NI contributions would also cover the original minimum NHS provisions for health and dentistry. I would set up an additional insurance-based scheme to cover health and dental care over and above the minimum provisions, which would probably have to be compulsory and based on something like mortality tables in the first instance.
I would also renationalise water and power services as well as transport and impose a maximum cost per unit, according to how the utility is provided.
At the same time I would impose a review on rented accommodation and set maximum rents per area, according to the size and condition of the properties. Landlords would be licensed and could only increase the rent on their properties if they upgraded to the next level of required property standards.
Not sure of the current regulations for new-build housing in the UK, but I would apply minimum insulation and heat source standards as well as things like triple-glazed windows.
I would try to de-politicise the education system and reduce the sizes of schools/classes according to the birth rate, which must be known and therefore its data used for planning and provision.
I would also organise schools, so that classes were according to ability for most subjects with dedicated SEN classes per year.
Core subjects would be the usual suspects of English and Maths together with Geography, History, Chemistry, Physics and Biology as well as 1 foreign language. In addition, Food and Nutrition would be compulsory for everyone and Sport would be included in the curriculum on 4 out of 5 days per week.
I would reduce the number of universities and the number of students, but would make higher/further education free for those whom it would benefit.
I would also re-introduce national ID cards (I have one for the country I live in). People may well be horrified, but they are jolly useful, particularly if you need official photo ID. You could also use the data (anonymised, of course) for planning purposes. ID cards would be compulsory for everyone living or intending to live in the country.
As for multi-national corporations, they would all be required to be taxed on the revenue generated in the UK, no creative accounting or off-shoring, with a minimum turnover/tax expectation.
I'd better stop now before I get too draconian!

Edited

I AM VOTING FOR YOU

suburburban · 19/08/2025 19:20

Arran2024 · 19/08/2025 18:59

I am in my 60s with a three bedroom house in a London suburb. We are thinking of downsizing but I was told by an estate agent that it will cost me £65k to move - that's stamp duty on the new property, estate agent fees, removal fees legal fees. If I now have to pay a tax on top, that's going to be the end of that - we will stay put.

Yes likewise

RR has an absolute cheek

CaveMum · 19/08/2025 19:25

Retirement flats are notoriously bad at holding value and can be very difficult to sell. Of course if you’ve shuffled off your mortal coil it’s not your problem, but I’ve heard horror stories of families being pursued for the service charges by management companies after the death of a relative while they struggle to sell the flat.

Arran2024 · 19/08/2025 19:29

soupyspoon · 19/08/2025 19:06

What would you downsize to given youre in a 3 bed already? What would the difference in cost be, if you ignore the cost of moving for a minute?

Because Im looking at a 2 bed bungalow, its the only one I have found near my mum, its only 80k less than they could get for their house!!!

What would be the point!

I would move to a two bedroom. We have an office, an extended kitchen, 2 bathrooms, a dining room, a big garden. It's in a sought after area, in the catchment for good schools. We would want to release equity - but not at the expense of £100k plus!

Letgoofmyblank · 19/08/2025 19:36

twistyizzy · 19/08/2025 18:45

Or the fact he's part funded by private healthcare owners 🙄

How is he part funded by healthcare owners?

I think it’s great that he is ploughing money into private services to get waiting lists down, aren’t you? It’s a good use of public money. The Scottish government refuse to do any such thing and as a result over 5,200 people have been waiting more than 2 years for a simple outpatient appointment. The number of people waiting more than 2 years in England is 1% of the Scottish figure.

Letgoofmyblank · 19/08/2025 19:41

Bruisername · 19/08/2025 19:13

The problem is that employers don’t want to come here - so how do you make the workforce attractive? By subsidising it.

plus people with eg adhd - the vast majority need support (and medication unfortunately isn’t a cure) and the government doesn’t want to ask employers to do that

add in the high value jobs are going to non uk/eu nationals (over the last 10 years the grads on my works scheme have gone from 90% uk uni graduates to 40%) we have a huge employment crisis

putting up the ni didn’t help that

they need to row back on their promise and increase IT, CT and VAT by a small amount

What support do people with adhd need?

Absentmindedsmile · 19/08/2025 19:42

Letgoofmyblank · 19/08/2025 19:41

What support do people with adhd need?

You know, £400 a month and a free car support. That does the trick.

soupyspoon · 19/08/2025 19:45

Bruisername · 19/08/2025 19:14

It can be very hard to sell the flat when you inherit and you will still be on the book for the service charge

Very good point

OP posts:
Bruisername · 19/08/2025 19:48

Letgoofmyblank · 19/08/2025 19:41

What support do people with adhd need?

It’s a spectrum - but most just need employers to be a little understanding with adjustments.

the biggest issue is no support in schools though - and that’s across the board - we’re not educating kids for the modern world anymore

BIossomtoes · 19/08/2025 19:51

soupyspoon · 19/08/2025 16:45

Well no one would ever sell then!

And not everyone wants that in a house, I dont. I like a breeze coming through the house I like fresh air. I dont want small windows either and I dont want the look of my house compromised.

Our house is 400 years old and listed. There’s no way the listing would allow the changes to “modern standards”. We don’t have cavity walls for a start. We do still have a layer of rushes under the floorboards though.

ilovesooty · 19/08/2025 20:06

twistyizzy · 19/08/2025 18:37

Unfortunately this bunch seem to reward incompetence! If they were Tories, Reeves and Starmer would have been out months ago

How would that have been achieved, exactly?

ilovesooty · 19/08/2025 20:12

Absentmindedsmile · 19/08/2025 19:42

You know, £400 a month and a free car support. That does the trick.

What a nasty ableist post.

twistyizzy · 19/08/2025 20:13

ilovesooty · 19/08/2025 20:06

How would that have been achieved, exactly?

Ask the Tories

CatherineHowardsad · 19/08/2025 20:15

PaddlingSwan · 19/08/2025 16:06

The welfare system and the NHS have grown exponentially to cover areas that they were never intended to address. Any attempt at reducing the present scope of either, will be perceived as "cuts".
If I were to play benevolent despot I would look at increasing personal tax allowance to GBP24k for everyone. Those on benefits would get the 24k tax free and nothing else. I would also ensure that married couples (blanket term to include those in civil partnerships), where one half was not working, would get the full 48k tax free sum.
I would then tax all earnings above the 24k at 20% blanket rate across the board. No increments or complicated structures.
I would reduce NI contributions to a rate that covered a minimum state pension on retirement, the age for which would have to reduce anyway once all the boomers have died off, so let's set an arbitrary age of 63 for both women and men. I would encourage private pension provision.
NI contributions would also cover the original minimum NHS provisions for health and dentistry. I would set up an additional insurance-based scheme to cover health and dental care over and above the minimum provisions, which would probably have to be compulsory and based on something like mortality tables in the first instance.
I would also renationalise water and power services as well as transport and impose a maximum cost per unit, according to how the utility is provided.
At the same time I would impose a review on rented accommodation and set maximum rents per area, according to the size and condition of the properties. Landlords would be licensed and could only increase the rent on their properties if they upgraded to the next level of required property standards.
Not sure of the current regulations for new-build housing in the UK, but I would apply minimum insulation and heat source standards as well as things like triple-glazed windows.
I would try to de-politicise the education system and reduce the sizes of schools/classes according to the birth rate, which must be known and therefore its data used for planning and provision.
I would also organise schools, so that classes were according to ability for most subjects with dedicated SEN classes per year.
Core subjects would be the usual suspects of English and Maths together with Geography, History, Chemistry, Physics and Biology as well as 1 foreign language. In addition, Food and Nutrition would be compulsory for everyone and Sport would be included in the curriculum on 4 out of 5 days per week.
I would reduce the number of universities and the number of students, but would make higher/further education free for those whom it would benefit.
I would also re-introduce national ID cards (I have one for the country I live in). People may well be horrified, but they are jolly useful, particularly if you need official photo ID. You could also use the data (anonymised, of course) for planning purposes. ID cards would be compulsory for everyone living or intending to live in the country.
As for multi-national corporations, they would all be required to be taxed on the revenue generated in the UK, no creative accounting or off-shoring, with a minimum turnover/tax expectation.
I'd better stop now before I get too draconian!

Edited

I would agree with most of above, but I would reintroduce polytechnics. And night classes for adults.
But as a child I didn’t like sport but loved dance and gymnastics, but I had to endure netball. I love yoga and Pilates and HIIT. So would like that type of workout available instead of football and netball.

Absentmindedsmile · 19/08/2025 20:24

ilovesooty · 19/08/2025 20:12

What a nasty ableist post.

Not at all. PIP is a wonderful thing for those that need it. Unfortunately a Lot of people who do not need it, get it. And that costs the uk tax payer millions if not billions.

It is not ‘ableist’ to call out scammers.

You can try that one in attempt to shut down debate, but it doesn’t wash any more than calling a sex realist a bigot.

We will have debate and people will challenge things without prejudice.

ilovesooty · 19/08/2025 21:44

Absentmindedsmile · 19/08/2025 20:24

Not at all. PIP is a wonderful thing for those that need it. Unfortunately a Lot of people who do not need it, get it. And that costs the uk tax payer millions if not billions.

It is not ‘ableist’ to call out scammers.

You can try that one in attempt to shut down debate, but it doesn’t wash any more than calling a sex realist a bigot.

We will have debate and people will challenge things without prejudice.

Your comment about £400 and a free car is nasty, and your assertion that ADHD is not a disability is ableist.

Bamboozled72 · 19/08/2025 22:01

No more income tax rises. Sick of people expecting middle earners to pay more and can barely survive the cost of living. Plus ridiculous disincentives for people higher up the income scale. Tax bands frozen for years while cost of living soars. Benefits need to be reduced. Reeves tried this and her back benches wouldn't allow it. I know it's unpopular and unthinkable to say on here but I do know families with higher monthly pay than us due to benefits. Bloody insane when you work 40+ hours a week.

Fretfulmum · 19/08/2025 22:04

I’ve just been doing the maths on this proposal. We are planning to move in 2026 (can’t before then, for reasons). If we have to pay the 0.54% above £500k as an annual property tax, it would take us 10.5 years to break even to the same amount of what we would have paid if we paid the stamp duty tax upfront as current. BUT we would have to pay this property tax every year for as long as we live in the house, so we would be MASSIVELY overpaying overall compared to current.

So this is like having a leasehold house with the government as the freeholder. The house would never really be ours as we would have to pay this tax for the rest of our lives living there hoping we can still afford it when we’re 80? We are f**ked.

Absentmindedsmile · 19/08/2025 22:06

ilovesooty · 19/08/2025 21:44

Your comment about £400 and a free car is nasty, and your assertion that ADHD is not a disability is ableist.

Not at all. PIP is a wonderful thing for those that need it. Unfortunately a Lot of people who do not need it, get it. And that costs the uk tax payer millions if not billions.

It is not ‘ableist’ to call out scammers.
You can try that one in attempt to shut down debate, but it doesn’t wash any more than calling a sex realist a bigot.

We will have debate and people will challenge things without prejudice

Bamboozled72 · 19/08/2025 22:11

@Fretfulmum asset seizing by stealth. We will all be equal but some will still be forced to work harder than others. Tories are the same. I hate them way more than Labour. They had 14 years to sort things out and did nothing. The fact is the rich are fine and people on benefits are fine. Middle earners are a nuisance and should be put in their place. No political party has the will to sort the country out realistically. They get booted out after 4 years and the whole useless cycle starts again. I'm older now and tired. I have no desire to play these games anymore. I just feel extremely sad for the young who will never have anything unless they're born in to wealth.

ilovesooty · 19/08/2025 22:16

Absentmindedsmile · 19/08/2025 22:06

Not at all. PIP is a wonderful thing for those that need it. Unfortunately a Lot of people who do not need it, get it. And that costs the uk tax payer millions if not billions.

It is not ‘ableist’ to call out scammers.
You can try that one in attempt to shut down debate, but it doesn’t wash any more than calling a sex realist a bigot.

We will have debate and people will challenge things without prejudice

So you said before. I don't agree with you. Copying and pasting your statement again makes no difference.

Letgoofmyblank · 19/08/2025 22:17

Bruisername · 19/08/2025 19:48

It’s a spectrum - but most just need employers to be a little understanding with adjustments.

the biggest issue is no support in schools though - and that’s across the board - we’re not educating kids for the modern world anymore

Yup, we need more state run specialist schools as ADHD and ASD grows. Having SEN children in mainstream schooling is damaging the education of both the SEN kids and the non-SEN kids.

What people with ADHD don’t need are PIP and carers.

EvangelicalAboutButteredToast · 19/08/2025 22:25

Out of interest who will be valuing the houses to decide their worth?

EvangelicalAboutButteredToast · 19/08/2025 22:27

Also houses will fluctuate in price depending on market conditions/local area changing/interior or exterior being in need of repair. Are these houses going to have yearly valuations, particularly houses like the one I live in which when last valued was around 500k. Has it gone up or has it gone down? Who decides? Maybe it will be valued on the price we bought it for 12 years ago.