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Britons Pay Highest Property Taxes In The World: Charges Like Stamp Duty Mean We Fork Out £60Billion A Year

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http://www.dailymail.co.uk/news/article-2489554/Britons-pay-highest-property-taxes-world-Charges-like-stamp-duty-mean-fork-60BILLION-year.html

The taxes are worth 4.1 per cent of Britain’s economic output

Britons pay more in council tax, inheritance tax and business rates

Think-tank report criticises Lib Dem proposal for mansion tax

Britons pay higher property taxes than any other country in the developed world, forking out around £60billion a year, a report reveals today.

Charges like stamp duty, council tax, capital gains tax, inheritance tax and business rates are higher in the UK than any of the 33 other members of the Organisation for Economic Co-operation and Development (OECD).

The taxes are worth 4.1 per cent of Britain’s economic output, compared to an average of 1.8 per cent across the OECD. In Germany, it is only 0.9 per cent.

No wonder George needs to get the housing market moving, it's clearly critical to the UK economy... All that tax on property and we are still utterly fecked!

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http://www.dailymail.co.uk/news/article-2489554/Britons-pay-highest-property-taxes-world-Charges-like-stamp-duty-mean-fork-60BILLION-year.html

No wonder George needs to get the housing market moving, it's clearly critical to the UK economy... All that tax on property and we are still utterly fecked!

Spot on, the whole economy is just geared to buying and selling as many things to each other in a ponzi scheme with banks and the government in the middle taking a cut from everything.

Why else do they want as many mothers as possible working, paying for child care, school leavers all going into higher education and encouraging people to buy and sell the same houses for ever more money paying taxes along each step of the way. Totally insane way to run a country.

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Posted from another thread.

Telegraph is leading tonight with a story on British paying most tax on property sales in developed world.

Written by a political editor ...

Looks like scrapping stamp duty might be on.

Ed Conway (@EdConwaySky) tweeted at 10:36 pm on Wed, Nov 06, 2013:

Haven’t seen Policy Exchange paper the Tel front page refers to but I presume what it refers to is this OECD chart http://t.co/KrdN0cBMxk

(

Ed Conway (@EdConwaySky) tweeted at 10:39 pm on Wed, Nov 06, 2013:

Slight warning: I think half the “Recurrent taxes on immovable property” is business rates, so not strictly on homeowners; rest council tax

(

)

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http://www.dailymail.co.uk/news/article-2489554/Britons-pay-highest-property-taxes-world-Charges-like-stamp-duty-mean-fork-60BILLION-year.html

No wonder George needs to get the housing market moving, it's clearly critical to the UK economy... All that tax on property and we are still utterly fecked!

For the average person this is story is pure propaganda.

1) Stamp duty is a one-off tax only when you move. How often does that happen on average? Boomers who have lived in the same house for 25 years haven't paid it in a long time. The burden is on the young with growing families or workers needing to move on new jobs.

2) Council Tax pays for services and council workers' pensions.

3) Inheritance tax is only a concern to some people once in their lives.

4) Business rates have a weak relationship to residential home "owners" via increased prices when they buy from a bricks and mortar shop.

Edited by Eddie_George

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"council tax, inheritance tax and business rates"

These are not what I'd call property taxes.

council tax - paid by occupiers, often tenants

inheritance tax - paid by people who inherit - not by the occupier! - payable on all assets, not just property

business rates - paid by occupiers, often tenants

So the property owners pay nothing! Weird kind of property taxes!

Shouldn't a property tax be a tax on OWNING property?

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http://www.policyexchange.org.uk/images/publications/taxing%20issues.pdf

A look says : Council tax £25 billion, Business rates £25 billion.

http://www.policyexchange.org.uk/publications/category/item/taxing-issues-reducing-housing-demand-or-increasing-housing-supply

Sypnosis actually sounds OK. It's as if the Daily Mail has taken a small part totally out of context..

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Stamp duty is a tax on buying & selling property, it’s not a tax on ownership.... Council tax is a tax on occupying a residential property; business rates are a tax on occupying a commercial property: both are paid by tenants, not owners. We have no taxes on property ownership....

Therein lies the problem... <_<

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Shouldn't a property tax be a tax on OWNING property?

Unfortunately our tax system is weighted so that wealth/asset owners don't need to pay very much tax, but income earners have to contribute massively (a cynic might think that was to stop them getting wealthy and diluting the asset owning minority).

Before someone quotes a 90% of tax comes from top 1% type stat ... that's not what I'm talking about.

You can achieve massive wealth in this country and effectively stop contributing tax revenue - especially if you start offshoring gains.

It should especially not be possible for 3rd generation decedents of individuals who achieved wealth to live like this, and in many cases have a disproportionally loud voice within the ruling class on policy (see how quickly Mansion Tax got dismissed the first time it was discussed - when any rational citizen would think it's an idea at least worth discussing).

When the ladder gets pulled up too far - the young stop aspiring - which is ultimately bad for everyone.

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"council tax, inheritance tax and business rates"

These are not what I'd call property taxes.

t

Stamp duty is a one off sales tax.

Business rates is a tax on undertaking activities at a premises for non domestic purposes - albeit that the tax is linked to a notional rental value. However its paid for by the occupier/tenant - not the owner so most landlords pay little or no rates.

Council tax is a tax for the provision of services. If it was a true property tax then people living in houses worth £250k in outer London would not be paying £150 a year more than someone living in a £50m house in Belgravia.

Perhaps the argument should be why is someone in a £50m house in Belgravia (band H) only paying £1350 a year in property tax?

Inheritance tax is a wealth tax applied to all assets - not just property.

So as you say its BS.

Also why is the profit on the sale of a main home not taxed - but you can pay up to 50% on profits made from your savings or shares?

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