Reeves plan to tax houses over 500k PART TWO

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I am not the OP from the OP!

You’ll have to wait for a generation though because no one will have factored these costs into their pensions so they’ll all stay put. They won’t sell because once they do they’re subject to the new tax

For those in a generation they’ll be aware of the taxes and be able to plan for the costs. Therefore nothing will be any different to how it is now
Some will downsize and others wont

Meanwhile the Govn won’t raise the thresholds because we know that’s what they do and more people will be pulled into much higher taxes

That won’t take long

I hadn’t thought about retirement and how on earth anyone will be able to pay this on pensions? It just gets worse whatever angle you take on it.

I can see all of this talk and chat stalling the already awful housing market sub £500k as why would you pay stamp duty now when it maybe removed in 12 months?

Im buying a small field now so I can plonk my static caravan on it when I’m an old lady, if anyone wants to join me.

The value is only needed when you buy. So whatever you pay for your property when you buy it is the value

Not the asking price. The sold price

Only once it’s sold. If you don’t sell
you aren’t liable to this new system

By then, a new government from another party is formed and reverses this rule. All back to square one with not much improvement.

There are a lot of cities in the world with very expensive housing market and they will have decent salaries and productivity economy in those countries. Why high housing price is the source of lower wages like someone mentioned in the first one said. Like London, many big cities in the US have housing crisis but that has not stopped salaries to go up.

The real reason of slow economy is lack of interest in stem education compared to global counter parts, not enough jobs in technology, and non existent business incentives.

That’s not cost effective for HMRC
They’ll just base it on when you bought it.
If they revalue without a sale it won’t be that often simply because it’s too expensive. Perhaps once every 20years if you are still in the house.

Labour won’t bother to work out the details though. Why bother. They never do .

It’s deflecting from the long term problem of welfare costs.

Put a special tax on constituencies where there was a majority vote for Brexit. They said it was a price worth paying. Time to pay it.

It’s not deflecting.Where do you think the money comes from, for pensions, pension credit, disability living allowance and other pension related benefits?

It's not a tax on top. It is instead of stamp duty. And you would only pay if you downsized to a property over £500k

I was responding to the previous poster. Not discussing pensions but responding to why it’s always brought up when the high welfare costs are mentioned.
ie to deflect from a much more real and growing problem
The welfare cost of pensioners will decline as their numbers do, naturally. The cost of other welfare benefits are growing exponentially despite our falling birth rate.

That needs to be looked at
Falling back on blaming pensioners doesn't solve the long term issue

Nobody’s blaming pensioners or deflecting @DrPrunesqualer It’s just acknowledging, that the money for pensions, pension credit etc comes from the welfare state.
How will the welfare cost, for pensioners naturally decline? when pensioners are living longer.And there’s actually more pensioners, today than ever, which will continue to rise.As you said birth rates in the uk are low (the lowest they’ve ever been) Yet the uk is over populated, just under 70 million.How about that being looked at, addressed.

Yes it’s always the middle earners and the thrifty who are punished

You are completely correct they put in sweeping changes fuck it up as they don’t understand how people think ans behave and then some other party is going to have to reverse or clean up the mess.

While the country is on its knees, the that party gets blamed, and round and round we go again.

They should sort out the 100k cliff edge

this will create a cliff edge at 500k but living in London I have no way of avoiding this if I ever move. if I rent I’ll be bearing the cost anyway.

I’m also fed up of the increase in taxes. I went part time when I had the kids and would like to go back full time but it doesn’t make financial sense when I take childcare costs into account - I’m paying out more than the increase in net. So I’ll wait until my kids are older. We moved for DH work and rent out our house as we hope to go back - after tax we aren’t really making any money on it and if we didn’t plan to move back we would sell. It’s a real hassle and that’s with very good tenants.

and every year I see the tax I pay increase and below inflation pay rises for many years. I feel like I’m a peacock stuck in a fence with more and more of my feathers being plucked!!

It’s because they want them dead as they are deemed to be useless/pointless - except of course if they offer free childcare.

The aging population is a huge issue. Longevity has improved but the oldest are not well and take up lots of NHS resources as well as having state and other pensions for longer

UK debt is massive and the interest payments massive. Roughly £1 trilliion in 2010, £2 trillion by 2020, £2.5 trillion after Covid, now nearly £3 trillion. That is why austerity has impacted on services. Toties were just starting to reduce debt with their cuts but then Brexit happened and debt carries on going up.

I like the concepts overall - rewarding hard work and ambition. But the PIP thing - even though a disability is permenant it can change. For example - I have inflammatory arthritis, and despite meds this will gradually cause joint damage so the impact on me with increase over time, and therefore PIP will need reviewing. It also varies day to day, so what the Dr sees when they see me 2 x a year is only a snapshot, so it's hard for them to state its impact on my daily life.

Whenever anyone questions the welfare bill associated with a group in society then some ridiculous poster will always suggest that they want the old/disabled/illegal immigrants dead. The irony of course with pensioners is that most of us hope to be one someday and the vast majority of us will have very much loved parents/grandparents in that age bracket so it's obviously complete hyperbole and nonsense designed to portray sensible discussion and debate as evil and morally reprehensible.

We need to bring the welfare bill down. It isn't enough to keep raising taxes on a population and economy that is already over burdened and struggling. This will be painful and will lead to a worsenment in the quality of life of some people but guess what? Tax rises also massively impact people's lives and ultimately part of being on a society is sharing the pain as well as the good times. Pensioners as a group are some of the wealthiest people on society and it isn't wrong to look at some of their universal benefits and questions if every person of pensionable age needs them. It's common sense and doesn't in anyway mean that people want old people dead.

@EvangelicalAboutButteredToast oh my goodness don’t be so ridiculous and over the top, nobody wants pensioner’s dead!! Why can’t it be acknowledged, pensioner’s get benefits? People are living longer, so there are more pensioners, why is this deemed as being offensive to pensioners?

Of course they want them dead. It’s not ridiculous at all. The same contempt is given to the disabled and long term sick. This is what happens when society becomes destabilised and people feel poor. It goes along with compassion fatigue. Hence all the Boomer name calling. We can also lump the Karen name calling in with the misogyny that is absolutely rampant too. All of it is true even if it’s not applicable for you particularly.

Anyhow apparently all of this housing shake up will be introduced in the autumn budget. So let’s sit tight and prepare ourselves to be leaseholders to the great Labour government. What could go wrong.

To me this sounds a decent idea. £500k
feels a bit low but perhaps £700k? It is on the seller, so it prevents extreme rises for no work on the property. And i assume it would be based on a percentage of the value over £700k Trade and sales below 700k really get moving - boosting the economy.

Im very late to the thread, but im very concerned about the threshold being £500k.

DH and I have a mortgage that runs into our 70s, mid 40s now. We both work really hard to keep up with our mortgage payments, which have vastly increased since our previous fix ended.

DH particularly, has a very stressful job. It is always in the back of my mind that he could have a crash at anytime due to the stress and we would need to sell the house. We do not have wealth. A house to house a family is £500k or more in many areas of the UK, well outside of London and the SE. We have very little equity.

Our retirement ages are after the age my dad developed dementia and before the mortgage is cleared and I cannot see us being able to do it until our late 60s.

It has always been our plan to downsize when the DC leave, but i don't know if they will. My DS1 (i was a young mum) is 27 and nowhere close to being able to house himself.

The welfare bill will certainly not be going down if the pressure on middle aged, middle earning people continues to ramp up. Occupational pensions are nothing like they were. Many people like us will end up having to sell, needing to rent again (having rented almost middle age) and claiming housing benefit to cover rent in retirement.

Yes,but all of this is going to take at least till the end of the decade to implement and Reeves and her cronies will be gone by then.