Mansion Tax at £1.5m - what will this mean?

[MaureenOHara]

Does anyone have any idea what this might mean for an individual and what it might do to the market. What happened to the £2m market and will that be replicated or is it different?

I don't see why the electorate would stop voting for idiots just because the pay was higher.

Coming back to the mansion tax, as someone else said, there are plenty of landlords that have more than £1.5m worth of property ( obviously letting them out at below market rates to single mums, as per typical MN landlords ) who won’t be getting caught in this tax.
So maybe a wealth tax should also be introduced. At least a wealth tax would have to take into account debt, which the mansion tax doesn’t.

Crazy suggestion. Why is everything reducing. Did you only work for the lowest pay possible?

Ok, so can you tell me the path to growth if we carry on with the status quo and keep loading the burden on younger generations? And what further things are you going to cut for young people?

The triple lock needs to go, and the state pension needs to be means-tested.
Announce it now, start means testing in 3 years, however anyone who has paid in enough years should get something back, even if it’s only £100 a month (after means testing).
Roll NI into normal tax.

Let’s not stop at 1.5m - the threshold should be lowered to 500k - that will raise more for the exchequer.

And lets introduce a new levy on HMO’s too.

Means testing wouldn’t work with the system we have now.

what the government needs is a long term strategy of contributing a slightly higher tax break to private pensions to encourage people to build more of their own pot. The state pension should then be abolished and universal credit should then be applied to everyone regardless of age.

Landlords won’t be paying this tax though regardless - the tenant will. It is simply an extra line on the council tax bill not a tax on a landlord. If you rent a high value home, you will have to pay the tax. People on this thread seem to think only owners will be paying it.

Yes, someone could own 20 houses mortgage free that they let out and not pay it and someone else could have a stonking great mortgage on a 1.5mil house and have to pay it on a debt

Yes you can shift people to put more disposable income into health, education or pensions via tax rebates but it’s an anathema to the electorate.

It’s always tax more and more. Which increases the state burden. Madness.

The tax will be taken off the landlord.

We needed a long term solution to be introduced 20 years ago, now the wolf is at the door, we need a more abrupt solution.

Systems need to be changed.

its a council tax addition. It won’t be a separate bill.

I was talking about the wealth tax.
However, you can afford to rent a £1.5m property, you can afford to pay the increased council tax. It’s still targeting more wealthy people.

I know but people were saying that if someone owned lots of smaller houses they wouldn’t be caught but someone with a larger house would. I was merely pointing out that wasn’t how it worked. Tenants will pay the extra tax not the landlord (either by paying directly on a bill) or the landlord will put will put the rent up accordingly.

the land value tax isn’t a wealth tax at all.

Some of these properties are let out as a HMOs.

So yes, tenants will be stuffed.

HMOs should attract extra taxation.

Agree.

Making it even more expensive to rent a room doesn't seem very fair.

Write to your MP and ask them to reconsider the tax then.

HMO’s are a scourge - many are still unlicensed, and the sector is ripe for reform.

More importantly, Labour need the money for the NHS and Defence.

You believe in the NHS and Defence, right?

I suppose you could turn your house into an HMO and get government money to house asylum seekers and avoid the tax so win, win.

The government needs more money, and the only money it can get its hands on, is yours and mine.
It is correct that wealth should be taxed.
Whether the way to that tax is through high value houses being taxed more is open to question by the looks of it.

The government can easily exclude registered HMO’s from the mansion tax.

since you claim it’s unnecessary to do so.

Lies.

HTH