Reeves plan to tax houses over 500k PART TWO

[soupyspoon]

I am not the OP from the OP!

I have no idea and won’t it all take forever?

@Julen7 @EvangelicalAboutButteredToast they wouldn’t need to be valued. The property tax only applies once the house is sold so the asking price will count as the price they use for basing the tax calculation on. All existing houses won’t be affected by the property tax over £500k

I am guessing some government agency will decide but no one will accept the valuation if it comes with a tax attached. Surely everyone will appeal the price slapped on the house? I just can’t see it working without total uproar.

I thought a previous poster linked to a proposal where people needed to pay an annual tax if their house was over 500k.

This is yet another tax on families and the young. They will pay FAR more over their lifetimes with this tax. Their houses will never feel like their own even when mortgage free

Thats a really good point. So this will breed an explostion of 'valuation companies', fleecing the home owner and tax payer for every penny for upgrade and renewal valuations.

Public money going to private companies again

Socialising losses and privitising gains.

@soupyspoon this is the link to where all this has stemmed from https://www.ukonward.com/wp-content/uploads/2024/08/Onward-A-Fairer-Property-Tax.pdf

improvements to houses won’t be taken into account. Only the price at which the house sold for will be used to base the annual property tax off. So in theory, it’s best to buy a very run down house for as low as possible, then improve it yourself. But you’ll be paying the annual tax for a lifetime, even on your deathbed (if over £500k)

What about pension credit? How many pensioners are getting this? And yes it is a benefit.

There you go:

https://commonslibrary.parliament.uk/research-briefings/cbp-10139/#:~:text=In%20August%202024%2C%201.36%20million,and%20180%2C000%20were%20pensioner%20couples.

Who are you to say what other people need? PIP is the one benefit with an almost zero fraud rate, unlike most of the others. It is also the one that requires you to jump through hoops to prove you qualify while snotty outsiders make the sort of comments you make.

What is the obsession with ADHD on a thread about tax on house prices?

it seems, that’s how many on here want it to go!!

This. 💯

@PaddlingSwani would vote for you said form one tiny error… pleas when you are PM can you put art and creative subjects high up in your lovely schools, the arts are a huge overlooked industry that generates huge revenues for our country with your designers and creatives leaving in droves.

I just got my question answered within the document. I’m reading the whole thing just thinking F U C K. I can’t imagine how this will go down. Particularly if they take the less popular route of implementing this tax immediately and particularly if they target holiday homes and short term rental properties immediately with double the tax owed. It will be like throwing a hand grenade in.

From what I heard on radio 2 today this would be nationalising housing stock and would wipe out freehold, we would all effectively be government leaseholders.

if you can’t pay your tax a charge would be put on your house so when you do move sell or die the government will take their taxes.

I think much like private school changes this will have the opposite effect and people would sit tight, the market will crash and nobody will be buying upwards, no large homes £1m plus homes will sell, and no foreign buyers would buy so they will sell up and flood the market with expensive London flats and homes for sale which with create a surplus and drive down prices.

I don’t know why people have problem with pensions? People worked throughout the years and then after retirement started getting payments. They paid taxes, contributed to economy. We cannot expect old people to work till age 100 or live in streets. They worked all their lives, how can mumsnet have such contempt for old people?

@PaddlingSwanill try again will spell check on.

I would vote for except for one tiny error… please when you are PM could you put art and creative subjects high up in your lovely schools.

The arts are an overlooked industry that generates huge revenues for our country and talented designers and creatives are leaving the UK.

See it all the time on here its dreadful. I cant wait until those people become old, they'll be donating their pensions wont they? They'll all downsize into a dog kennel wont they?

Also all the threads about 'my mother wont do this or wont do that, or insists on doing this or insists on doing that' - all the people now will get old and just allow themselves to be bossed around and controlled by their children wont they?

Previously, l worked as a support worker, supported people with physical and learning disabilities to claim pip, as well as giving every day support.The person has to have recent medical supporting evidence to support the claim.They have to prove they have a disability and it’s on going.They get reassessed every 2-3 years, which is basically going through the whole process again of reapplying. Many people don’t claim because it’s so intrusive and very stressful.
It’s laughable, how some people think it’s so easy and just given to people, when that’s really not the case at all.

Which means people like me in a £850k home simply won’t ever move, unless I’m downsizing, so the market will totally stall on all homes above £500k.

@reversegear exactly- we will all be leaseholders with the government as freeholder. There will be no retirement as how will we continue to pay property taxes on mortgage free homes? The taxes rise in line with inflation and who knows what else they’ll add to it in the future. Look at the US- they protest and protest for property taxes changes. It is causing major problems over there.

if the Onward Report isn’t followed in full, and eventually we will all pay the property taxes regardless if we’ve been living in the same house for decades, then the only positive I can think of is that it will encourage older people to downsize to free up family homes for families.

Agree with you. Posters who are defensive about the ever inflating welfare bill tend to single out pensioners for some reason.

If you’re a regular on MN you’ll know that, this doesn’t just apply to pensioners, MN has contempt at the disabled and lump them in with the unemployed who can work.Pensioners, don’t just get their pension, many get disability living allowance, which isn’t reassessed, as well and pension credit, housing benefit and no not all have paid into the system.

I didn't say anything that implied contempt. I was just pointing out that when people talk about cutting the benefits bill they often don't realise how much of the expenditure is on pensions and related benefits, and the financial implications of that.

And I'm a pensioner myself.

Exactly