Burnahm Land Tax Replacing SDLT

[maureenponderosa]

https://www.standard.co.uk/news/politics/andy-burnham-tax-london-land-value-council-stamp-duty-b1286586.html

While I think this is overall a very sensible approach, and do think Stamp Duty is a tax that discourages market movement, I’m a bit worried about this.

We moved recently. Paid £30,000 in SDLT. It will be so galling to have to then pay a stamp duty replacement tax when we’ve already paid so much in stamp duty.

I wonder how this would be rolled out. Would it apply to all purchases after a certain date or to everyone whether they’ve already paid the tax or not.

Hoping it would be the former.

Any speculations?

Headline mentions London but we’re nowhere near. Very rural. No London salaries.

So essentially they want to normalise individuals taking on debt to pay for public spending in the name of wealth redistribution.

If it is considered wrong for a landlord to exploit their position to extract more money from people with limited means, why is the same principle not applied when the state does it?

Yep. There’s a whole swathe of people who are on incomes in the SE and wherever it’s higher that just can’t afford it.

It will probably go down well with people who have been told that anyone with more than them is somehow responsible for the government not being able to help them more. Labour has been feeding those people a heavy diet of the politics of envy, ever since they came to power.

I would imagine that there would be some relief for those who have paid SDLT.

Exactly
they are marketing this proposal as helping everyone but in reality they are putting people in debt to the Government
I find it shocking that they think people can cope with the stress of being in debt.

👏👏

yes it’s hard to get more from a pot that’s running dry. People at the top can move/restructure so it is the middle that needs to be squeezed for more.

and whilst people talk about evasion/avoidance - a lot of that is VAT/cash in hand however much people would like it to be big corporates

to make Labour electable at the next election he needs to be dynamic and introducing LVT is not dynamic!!

A while ago when this hit the headlines it was stated if you’ve already paid stamp you will continue to pay the old council tax

This will replace council tax.

It's all speculation at this stage.

that's what already happening with this proposal, read this thread - people living in cheap areas are applauding

that's what already happening with this proposal, read this thread - people living in cheap areas are applauding

Page 3 | Anyone else in the South East worried about Andy Burnham bringing in a land tax? | Mumsnet

I'm not sure if I have got this right. Is this alleged new tax which combines stamp duty and council tax just for people who are moving house?

I read a piece on line that said there was to be a cap of £1200 on this new tax so £120 a month but house valuations would be done yearly.

I’m sure but it doesn’t make it more doable for a vast number in London and other. Plus it’ll impact the next generation too, those people in cheaper areas might quite like their dc to have opportunities in London.

The cap is temporary
A momentary sweetener before the burn

Yep - before you know it the rate has to increase because NHS. Thresholds are frozen bringing more people into scope etc etc

people Wilma struggle to remortgage because affordability suddenly becomes an issue and the government is the preferential debtor on your house

everyone will pay more in the long run

Only a minority are willing to accept cuts to benefits and services, and yet only a minority are willing to pay extra for these benefits and services. Grasping a few extra million from the millionaires just won't cut it. The time has come for a reckoning.

That's not how an economy works. A stagnant housing market affects tax in other ways. Freeing up the market might mean less stamp duty but increased tax take in other areas.

I did the calculations on LVT charged at 0.48% v Council Tax on a Band F house in SE Cornwall, which last changed hands when stamp duty was just 1%, and it comes out almost exactly the same amount annually. In fact, we save about £150 pa (whoop-de-doo). Mind you Cornwall Council has some of the highest council tax rates nationally.

I live in London and 0.48% of my house is over 3 times my net salary!!! Hopefully the land value is lower than my house value

I read a long piece about this somewhere and the crux of it was that it’s likely this will be introduced at some point but it will be very gradual and over a number of years so that it doesn’t disrupt the housing market.

Where we live we will almost certainly pay more than we do now if it’s implemented but I’m not going to worry about it. I reckon it’s at least 5 years away, if not 10. For a start every single house and flat has to be revalued.

but it’s a big vote winner

Great, let's have a general election and see just how much of a vote winner it is for 'Andy' then....

Having paid stamp duty a week before Rishi Sunak said it wouldn't apply for nine months and so we'd have saved thousands of pounds - no, you don't get any refund if it turns out you paid it 'for nothing'!

I’ve done similar if we moved
It equals out but only by investing the money we would have spent on Stamp and used that for the extra CTax
It would mean longer term the kids would inherit that sum though
So a better policy

Certainly fictional, do you know how much the average salary is in Warwick?