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.

Agree Keeppumping

I can’t see Labour getting in at the next GE with these sort of policies

No one can plan anything and people can’t rely on that 0.48 not becoming
1/2/3 etc % before long with ‘ye olde we’re broke we need your money’
Look at student loans
Look at women can have willies
We can’t trust their common sense and critical thinking and
This policy is just another to add to the list

Absolutely, we’re in a similar scenario

What rate of increase did you use for it? It can’t stay at a flat 0.48%, surely? Council tax goes up every year…

I understand they’re banking on the market value of your house going up every year.

no doubt they’ll determine a flat percentage that property has increased in the area rather than on an individual property basis

We can have the properties we do just not rely on population increase. AI will take some jobs anyway and we already have too many NEETs.

Market house prices usually do too
Plus there’s all that extra tax on Improvements
( currently only accounted for when a property sells )

They’ve already increased the SD anyway

Every meeting is how can we tax people more - McFadden re Labour

I don’t know who they represent anymore tbh. The working class always aspired to property ownership ultimately - a bit of security. And if he wants to move to more council housing then as the freeholder won’t the council be paying the LVT!

I know my v working class colleague (gen z) hates how Labour make patronising assumptions about the working class!

One of the items on your list made me spit my tea out. 😂

" I understand they’re banking on the market value of your house going up every year."

LOL, that would make them much more clueless than even their biggest critic imagined.

Yes they’ve missed the boat on that one

I bet it was the one about student loans 😉

Hopefully they will have to own the debt bubble boat that Bliar/Broon launched sinking, that would be poetry, then they can toddle off into the sunset.

Yes, that was the one... 😉😂

But the instalments are over a lifetime.

Just another tax.

I am unsure why everyone is so in awe of AB. I always thought he was more Corbyn than Corbyn

Labour is returning to its roots.
Anyone with 2 pennies to rub together is rich and they have to give their money to the government to give to the poor who are incapable of doing anything and need to be looked after by the state

Most of the policies coming out of Labour like a lot of governments haven’t been thought through beyond what they want to happen. No one seems capable of putting themselves in another persons shoes and thinking of what the person they are going to affect will do

Like the guy on tv who was rubbing his hands together with glee at the thought of btl landlords having to pay more tax when it was announced that btl landlords wouldn’t be able to put mortgage interest against their income tax.

He didn’t consider that his rent would go up to cover the extra taxes or rents would rise because what were rented as family homes would become Airbnb’s

Just seen the latest, CGT on sale price of homes

Surely that would mean a lot of properties standing empty or people rattling around in larger places
If the house isn’t sold then no tax would be paid.

Or people just giving up and moving out of the country

How likely is it that this will come in before Labour are voted out? (And yes I voted Labour!)

Because we bought in a then unfashionable suburb 25 years ago which has since been gentrified, ours will more than double at a time when our income has massively reduced.

AB has talked about both land taxes and property taxes and more recently backed Fair share. It doesn't matter that you purchased your home pre-gentrification. There are several justifications people have put forward for why they believe it is "fair" that you pay more tax on the home you live in:

Because across MN (in no particular order):

The tax rise would likely be "capped"*

*the small print says the difference between that cap and the assess tax bill would be rolled up like a debt, with interest, and paid when you sell the property or at a later date. The devil is always in the detail.

Having a tax on profits would mean the government would have to wait.

It's fair.

The wealth you have already been taxed on should not be left in a form that others deem economically inefficient.

At the point you sell, you will still receive the uplift in value based on the house price inflation that you and others helped create.

Putting money into the roof over your head is economically inefficient.

Paper wealth is real wealth and should be treated the same as realised wealth.

Your home is in a desirable area.

It is easy to collect.

You have been bragging about how much money you have made.

You are wealth hoarding.

You are asset hoarding.

You need to be encouraged, or even forced, to move to make way for richer families who can afford to pay the tax based on the current market value of your home.

If you are a pensioner, you have had it too good.

You are blocking the housing market.

You are tying up the Government's money by not selling your home.

You won't face hardship because the Government will allow for a reasonable interest rate on your debt if you choose to defer payment until you sell.

It is acceptable for you to face financial hardship/ stress / housing insecurity to help fund general public sector spending.

It is acceptable for you to have to take on debt or sell your home to help fund general public sector spending. Not to be confused with self funding.

I can't claim the credit for these pearls of wisdom. Happy for people to add any others I may have missed.

Excellent summary

I might print that up and put it on my toilet door
so I don’t forget that I am an undeserving
How dare I think I have a right to anything

Best place for it! It's a good reminder that you cannot polish a turd.

My thoughts exactly
and as dh is a Labour voter I’ll have a second copy behind the toilet
so he can stand and admire the fruits of his voting

( although when I mentioned this morning our kids could be double tapped when we die paying 62% in IHT and cgtax even he couldn’t say that was fair …. )

apart from London prices have been falling for a while, especially at the top end

The London market has stalled. Things aren’t selling and all I see in ‘price reduced’

I wonder how it works with devolution.

So as per that site, all areas apart from London are expected to pay less. London will pay significantly more. So local areas will have more power to spend money taken from London and redistributed?
This will go down well for Labour.