Anyone else in the South East worried about Andy Burnham bringing in a land tax?

[Beachbooks]

With it looking likely that Andy Burnhan will be the next PM, I was interested to see if anyone else in London / the south east were worried about potential tax raises specifically around the land tax rather than stamp duty ?

A lot of my friends who live locally are worrying that he will make the land tax for the South East so high in proportion to other areas of the UK that it will be financially very difficult to afford but then also extremely difficult to sell!!

BTW we have very standard house and garden but we live in an expensive area

How is the land value tax calculated? If the high-value land becomes devalued because you can’t sell any houses on it because the tax would be so high, does that then reduce the land value and the tax?

You forgot the pudding.

A proper pudding, not one of those fancy desserts.

Spotted Dick, or Eccles cakes.

You should put yourself forward for PM. I’d actually vote for one or two of those…

A trio of deserts, Chorley cake, eccles cake and a slice of Manchester tart

I can't get het up about it. We live in SE. Moved a few years ago into a newer house (built 2005) vs our 1970s previous home. They are identical in terms of size, bedrooms. Current one has a small garden. Old house was D, currently one is F. Current one was £35k cheaper. So it's already a lottery.
We now pay £4k a year. We will likely pay that regardless of the method of calculation cos the local authorities have to raise the money to pay for local sevices.

We’re in an expensive outer London area, but with a pretty titchy garden, so TBH I’m not too worried.

Burnham has been keen to replace council tax (and possibly stamp duty) with LVT for about 20 years so I think it is quite likely to happen. All the projections that I have seen show a few hundred thousand wealthiest households paying a couple of grand more per year than now. Sounds politically doable.

You can do a calculator to find out the proposed amount you'd pay (or not pay if you rent).

https://fairershare.org.uk/counciltaxcalculator/

For god’s sake. Everyone is scared of the northerner! Hilarious. I hope he does target “the south”. And I hope he refers to you as “the south”. I’ve been sick of anything north of Watford being described as “the north” for the last his knows how may years 🤦‍♀️

One thing overlooked here is that those living in SE / London have the very least disposable income of all regions of the UK. Wages are high but tax on those wages are high too, and the price of housing is huge too. So the UK already gets a huge amount of tax from those in the SE compared to what those workers have to live off after tax and housing. A further tax? Why? Because those living there are NOT as rich as those in the north.

Don’t be ridiculous, the VAT on private schools has made conscription the remaining students there uneconomic.

So how would this affect farms and small holdings ? I have a small holding and live in an area where farmers are struggling generally.

Agreed, and I'm a lifelong Southerner who owns property in the South East.

Watching some of my contemporaries and the OP getting terrified about this is mildly amusing. People thought they could get rich quick forever by purchasing a life essential such as property, instead of creating wealth through jobs , or investing, or taking career risks.

Wash your mouth out, it’ll be pans of scouse.

Why? It is designed so that valuable properties that haven't had their tax value updated for 25 years start paying their fair share. Everyone else pays less.

We sold a 5bed house in SE for £860k and moved to a 4bed house in W Mids for £690k. Our CT went from £3.5k pa, to £4.5k.

I’m not bothered about the rumoured Land Tax. Stamp duty is a ridiculous tax and something needs to change.

What did Dandelion & Burdock ever do to you?

This is not about taxing the rich.

The King of the North is going to crown Lisa Nandy as his Queen (Deputy PM) and have Wigan running the country. The North is taking over

He needs to keep us people in Makerfield sweet though to prove we weren't a stepping stone

Just keep reading the Daily Telegraph. They will list loads of things to keep wealthy home owners in the SE awake at night. Usually under a headline featuring the words "nightmare" or "attacked". Non of these will actually happen

People have already paid above the odds for properties in the SE - why is it "fair" that they should additionally be taxed more? No-one is "living off unearned wealth" while they live in their overpriced 3 bedroom terraced houses in London. I would love to live in a cheaper part of the country but my job and that of DH (in medicine) ties us to London and the hideous house prices. We are not all investment bankers and it wouldn't be great for the SE if we all upped sticks and moved to more affordable parts of the country.

Nothing, Dandelion and Burdock is my chippy can of choice but I know its a bit marmite so vimto would be the safer option for the likes of Macron and Trump

It might be time to leave the country folks...or sell up and buy a flat.

Race to the bottom now.

How often will they revalue the properties? If a town becomes a hot spot and people bid up prices, does everyone's land tax go up?
If you put an extension on, or if your flat goes from leasehold to freehold, or if a new runway is announce over your back garden, how soon does that feed into what you pay?

The website says;

The rate will remain fixed at 0.48%, if house prices rise as they have historically then the amount paid will rise inline with the average rise across the last three years. If house prices are flat then the PPT will be unchanged. If prices fall you will pay less. The system acts as an automatic stabiliser, in tough times your bills would feeze[sic] or fall.

This is a tax cut for around 19 million households. Across the country, the tax would see HM Treasury gain £5.6 billion in surplus revenue.

but they don't say how they know the value of every house. A new office of house pricing that monitors and inspects?