Labour’ proposing a new property tax

[littlebilliie]

I’ve mulling over the “floated” new property tax, they plan to abolish stamp duty and tax on the sale in fact, adding capital gains to principal properties.

also to introduce an annual new tax on properties of £500k and above.

Labour is really going come unstuck as property as in the UK this is one of the cornerstones of financial stability. This could be a real Truss moment for Labour.

If there’s a sudden new tax on selling properties we may see the movements of property slowing down considerably.

Elderly homeowners could be discouraged from selling at this point as they may be moving through different properties as they downsize into sheltered accommodation and then into a care home this could completely slow the whole market down and an obstacle to sale.

Also if it’s perceived that property below £500k isn’t going to be taxed we could see an absolute rush to buy those properties which of course would increase demand and increase the value.

Any thoughts on this?

Usual Labour theft. It's not their money. And it will be spaffed at the government of Mauritius who have lowered the taxation of their own people as a result of the nice income being received from us.

Labour need to start cutting spending properly although it's possibly too late for the country now.

I did love Dominic Cummings' description of our Chancellor as "Non functioning" although would prefer it not to be true, really.

We are just about to move and pay a metric fuck ton of stamp duty. Anyone want to bet that that WON’T be taken into account if they do scrap stamp duty and create some new tax???
It’s legalised theft but I wouldn’t mind so much if it wouldn’t just be pissed away.

Also all those properties in “Trust” for their family are going to have a nasty shock when the trustees have to pay this tax

Will they have to pay though? There are houses in wrappers of ltd companies to dodge stamp duty. Essentially you buy and sell a company but the house remains owned by the same company so any capital gains won’t be realised . I’d assumed trusts would be similar.

From what I read, if you have recently paid stamp duty you will be exempt.

I feel like everything left to be said in this was discussed on last week’s threads. Has there been any “new news” on it recently?

For how long?

Labour will not take the opportunity to tax us twice? Well, more than twice since I’m paying that stamp duty with already taxed income.
I hope you’re right but I can’t imagine it!

The whole thing is only a labour thought bubble at the moment, no detail and may very well not happen at all.

But they've had 14 years to work out a plan. How odd that they seem to be governing on the hoof with no clear idea of what to do....

Capital gains tax on one's residence will also eat into the amount available to people to pay for care when they're elderly. Resulting in a bigger bill for the state down the road.

Unless assisted dying takes off, like it has in Canada.

Will they be taxing but to let landlords multiple times for each property?

Just more labour theft economics.

They seem determined to grind the country to a standstill.

I would think that's why it got legislated in such a rushed manner, with the reduction in the state care cost in mind. There won't be the money for the infrastructure, and proper protections in place to make sure that decisions are made for assisted dying carefully enough. God help us.

As the policy will probably be scrapped before it even comes in I wouldn’t worry about it. As for how long my Crystal ball is out of order at the moment.

Why would it be scrapped? The lefties will love it. Redistribution of wealth.

Why is it odd, it is what they have always done. Float the idea in the press, see the negative reaction and withdraw idea. They do have form for this!

I wonder if they will allow the cost of the mortgage (i. e. interest paid) to be included in the cost of the house, in addition to purchase price.

The £22 billion black hole has since turned into a 41 billion since Labour came to power, they can't reduce the welfare state bill because that gets voted down, they've promised not to increase taxes on working people so they have to find the money elsewhere.

But so many people paying this new tax (if it comes in) will be working people?

So, if I bought a doer upper and sunk 40 k into it, and that’s all I have, my house, I can pay capital
gains when it sells for more? Because if that’s the case I’d rather pay stamp duty since in my next move be moving to a cheaper area and buying a cheaper house. My house isn’t “wealth” it’s a bog standard small home.
Id also rather they stopped dicking about and just put a bit extra tax on earned income across the board, rather than trying to find ways to avoid regular taxation and in the process shafting the hospitality industry, farmers, and young people trying to get their first jobs.

https://www.moneysavingexpert.com/news/2024/10/pensions-liable-inheritance-tax-2027/?fbclid=IwQ0xDSwMZdLpleHRuA2FlbQIxMQABHoCtJ70wszTaIpepHlB1uASPKFBIrkvqnMYHjR4Mi8HejjAjdpL8YtcsXL1K_aem_oWlwaCpA_bRkW1Uyudr8fw

this was a depressing little read earlier ☹️

I imagine there isn’t much in the south east worth less than £500k, gif know how people will pay this tax on top of everything else.

Of course there are! The SE town I live in has hundreds under 500k. Most terraces and many smaller detached/semi-detached houses and bungalows are 475 and under.