AIBU to think a £2m homeowner should pay mansion tax?

[LadyJos]

Anyone read the Telegraph Article about the 93 year-old man paying mansion tax on his £2m Richmond Home he bought for £15,000? AIBU but isn't £15,000 to £2m a fairly good return over 60 years, and shouldn't he pay some tax at the end? I can't help thinking since the home is mortgage-free, he has options here to pay the £2500 a year...
‘I’m a 91-year-old veteran about to be dragged into mansion tax. This is wrong’
www.telegraph.co.uk/money/property/house-prices/91-year-old-about-dragged-into-mansion-tax/

Yeah.

What a magnanimous favour.

In London?

if people are sat on a £2m asset, they have options to release equity. I have very little sympathy for anyone with equity pleading any sort of poverty.

This. He may be asset rich and cash poor.

The envious people in cheaper areas will also pay eventually. These taxes always come around for all. Just wait and see. Be careful for what you wish for.

Hello, I mean all people. I don’t own a €2m house so I don’t qualify for mansion tax. I don’t particularly enjoy contributing tax on my other income and investments. I’d rather keep it - I think that’s quite human. But I stop short of feeling sorry for myself because I recognise I’m quite lucky, earn well, etc. I don’t mean to sound holier than thou. I’ve got a thousand faults. But I don’t think my paying a lot of tax is unfair, no.

I doubt you will be as quick and happy as selling your own home because of a new tax.

Well at this rate many are heading for poverty. This is like theft and I went to A & E this week 8 hrs wait even thought we pay 45 percent income tax and all sort of taxes they come up with. I refuse to pay more for this shit show,

I think in his position you can be unhappy about the tax and unhappy if it means you sell your home, while also recognizing that having these options is a luxury in itself and you remain comparatively lucky compared to a lot of society.

Both can be true.

Although we’ve not actually identified anyone who has to sell their home because of mansion tax? Not even Telegraph man?

It’s really quite patronising to say those who are not thrilled about paying yet another tax are “feeling sorry for themselves”. I don’t feel sorry for myself at all. I would however like some clarification as to how this will work for people like me, who have literally just paid 6 figures in stamp duty. I don’t think that is unreasonable or self pity in any way.

I think I’ve specifically said I too would be unhappy. I wouldn’t feel sorry for myself. You sound the same. Unhappy about it, seeking clarification, but not extending that into howls of unfairness.

So I don’t think I’ve linked the two.

I fail to see how having to sell your home to pay yet another tax is in any way shape or form a "luxury".

Or how it could possibly be fair in any level.

But no one's selling their home in this case. That isn't a thing that is happening to the couple interviewed or anyone liable for the tax

Interesting. I think being able to afford an unexpected cost is a luxury. Selling, downsizing or releasing equity is different from that unexpected cost making you destitute. That optionality is why you build assets in the first place.

But unless I’m mistaken, no one is in a position where theyve downsized, released equity or sold because of this, right?

No, because it’s not due to be implemented until April 2028.

It hasn’t come in yet? I don’t doubt it is having an effect on the properties some people chose to buy.
But I also agree with pps, this will trickle down to all properties in the not too distant future.

Gosh I am surprised at the amount of people supporting the man. He’s accumulated wealth - and as other people have posted he paid A LOT all those years ago. Seems only fair to pay his way - it’s capital gains isn’t it? Ok if he can’t pay it now (though I bet he can) then defer til his death. No need to kick him out of his home. Unless of course he’s left the house in trust and then avoids tax.

I’d like to get to a point where we collectively agree that SOMEONE has to pay for our public services and NHS and all that. Ideally, fairly…

I have a female relative out there. She loves it.

an unfair tax added by the governement is not "an unexpected cost".

No one should have to spend a penny on an unfair random tax.

The top 10% of earners pay over 58% of income tax, up from 50% in 2000. The bottom 50% pay 10% of income tax, which is a reduction since 2000.

so arguably fairness would be taxing lower and middle earners more like many countries do.

Progressive taxation is based on individuals ability to contribute.

Why on earth would you tax the poorest more?

Why punish success?

You mentioned your 'very wealthy husband' wants to live in the UAE to avoid paying tax. If it's so much better to live somewhere like that why are you in the UK?
Are you wealthy, or is it your husband's money?

I may not be “very wealthy,” but I do pay a lot of tax, at the top end of the higher rate tax banding.

I can confirm I don’t feel “punished” or indeed “robbed” by paying more than lower earners.

Not if it's mortgages to the hilt they don't