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

I agree.

While I get the principle ‘higher land value means you are wealthier means this is a form of wealth tax’…

… what it ignores is that you get a lot less house in HCOL areas - and then are going to be doubly penalised for that.

My house is very small, but it was very expensive because it’s in London. It’s not quite what one would imagine a million pound property to look like….

One aside to this which could be positive - removing stamp duty. As this is a terrible tax.

So someone living in a large house in SE England might have a house worth £1.5m. They will have paid a load of stamp duty on that house and in order to buy it will be in a job paying lots (and lots of tax). Same home, same job up north. Wages 2/3rds London wage, house prices 2/3rd London amount, far lower income tax and stamp duty paid. The person living in the south is facing paying another tax despite paying far more tax already. Does this strike you as fair?

The difference is that Burnham has explicitly endorsed a specific policy proposal for an annual property tax at 0.48% of land value. So I think your post is unfair. This is not scaremongering.

Because you're already suspicious of him just because he's a Northerner. "Ooh, he's going to pick on all the Southerners". A land tax based solely on region rather than the value of the land would be totally illegal, but that won't stop you hurling the accusations. What next? He wears a flat cap? Has a whippet? Drinks builders' tea?

If only - unfortunately my house in East Anglia will not sell!

Sure because what we absolutely need are taxes which will disproportionately affect working families and massively discourage older people from downsizing

Flee, the Northerners are coming

Maybe, like the Roman Empire you could build a great big wall, this time from Kings Lynn to Gloucester - keep the Northern Tribes out. We could call it The Daily Mail Wall …

You will see us coming down the M6 with our faces smothered in gravy to hide our identities as we invade your nice villages.

I'm not sure how it will be introduced but if in theory it replaced stamp duty, it could make it easier to downsize. Currently if you downsize, you have to find a chunk of money for stamp duty upfront. With lvt, instead you'd see your land value bill go down. So it could incentivise downsizing more than the current system which makes any move very expensive up front.

As a renter in London I’m wondering how this tax will inevitably be passed onto me on top of my already extortionate rent.

However, I think we should get rid of stamp duty because it’s completely stupid so it this replaces it I’m happy.

Also this is how it’s done in most of the US instead of high income taxes which makes sense to me.

Sticky Toffee pudding for sure, and some Everton mints on the side

Look, I know we don't want them to find out how pretty it is up here (and we have nicer water) in case they invade, but let's not over-egg it.

Those with the broadest shoulders etc. etc. It will be a vote winner. Who doesn't want someone else (in the south east) to pay for their services?

There is a Clacton resident with £5M

One suggestion is the top 20 odd % will pay more than currently and everyone else less. That sounds like taxing the rich to me, especially when you bring second homeowners and empty properties into the mix, which on the outline I read suggested that they would pay double.

I mean I agree that a land value tax needs to replace stamp duty, but the way they’ve implemented it in some EU countries I’ve lived in is that it’s decided per parish pretty much. So Westminster will have a much % of land value tax than say Hull. That would eliminate the regional inequality of a flat rate.

Would it make much difference? Stamp duty is related to value and value is also related to how big a plot you have, and land is also more expensive in places with expensive housing. Or you think it will be at a much higher level than stamp duty? He could just raise that rather than reinventing the wheel. But it would be a government decision not just his, unless he's going to try to emulate Trump.

Is he not going to decant Westminster to Manchester City Hall? I wish he would frankly.

Shouting “Ecky Thump” .. as we wave our strings of Black Pudding around our heads

That website says second home owners should pay a higher rate. I found an article that said 0.96%.

I heard a rumour someone had booked out the big room at Stubshaw Cross Labour Club every day till May 2029 and asked for bleachers to be put on the dance floor.

West Mids here, if the land tax is 0.48% as is being suggested I will be nearly £1,800 better off per year.

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This policy change isn’t necessarily to raise tax but to make tax fairer and boost growth. Stamp duty is a terrible tax. It stops people moving house which given our limited housing stock prevents people from living where best suits them. It prevents people from moving to get jobs too and so is terrible for growth. Stamp duty needs to be binned. Land value tax - taxing everyone every year, not just those who have the temerity to want to move house which given- makes so much more sense.