Jump to content
House Price Crash Forum
Sign in to follow this  
fru-gal

Mansion Tax To Spark Valuation Disputes

Recommended Posts

....anyone recall when they brought in the council tax banding?.....some wanted their banding at a higher rate because it meant their house was worth more....no kidding!! ;)

Share this post


Link to post
Share on other sites

....anyone recall when they brought in the council tax banding?.....some wanted their banding at a higher rate because it meant their house was worth more....no kidding!! ;)

No, I don't remember that. I was either too young to remember or just not taking any interest. Funny how some people think though!

Share this post


Link to post
Share on other sites

Quote from the article;

Mr Gauke predicts that a mansion tax would reduce property prices, depressing the amount of stamp duty land tax and inheritance tax collected. It would also force many elderly owners – lacking liquid income – out of their homes, he has warned.

Oh no, not reduced property prices. The tax collected from SDLT and IT presumably goes towards paying housing benefit (which has risen hugely under Tories) because rents have risen, because house prices have risen. The Tories don't see that high house prices and increased tax produce an increased benefits bill necessitating increased tax ad infinitum. doh.gif

Share this post


Link to post
Share on other sites

....anyone recall when they brought in the council tax banding?.....some wanted their banding at a higher rate because it meant their house was worth more....no kidding!! ;)

The system was based on 1991 house prices - and introduced in 1992. Back then council tax was very low in comparison - so moving up a band probably cost you no more than £50 a year (so worth the kudos of a higher band e.g. E was posher than D!)

It as a very unfair system - particularly because Westminster for example has the lowest council tax due to its parking income etc.. Someone living in a £70m mansion in One Hyde Park in Belgravia actually pays typically £150 less council tax at Band H than a pensioner in a modest band D terraced house in the suburbs.

Because the values are so old there are literally thousands of central London properties in Bands B and C - the same band to which a one bed new build flat in Barking is allocated. If it was revalued now they would probably move up to Bands F or G. Its criminal!

The mansion tax is therefore fraught with difficulty - because you cannot just look at Band G and H properties as some now in Band D might even qualify in central London. Expect an avalanche of legal challenges - and lots of work for valuers as people seek to avoid it. It will probably become a huge industry.

But its coming - the government needs money and central London property is an uptapped source of riches potentially!

Share this post


Link to post
Share on other sites

LVT would be easier. Is the Mansion Tax a gateway to LVT?

I think the mansion tax - while a good start - could be very messy. You are setting thresholds based on values - a year after prices may have risen 20%. What happens if prices start to tail off - you might have been at £2.5m at the valuation date but now it would only sell for £2m. Central London prices can be volatile - and its going to be difficult to administer. And thats before you get Balls exemptions for those on low incomes (MPs) or grannies living in £5m houses who yet have no money (bar of course a £5m asset with more rooms than they need)!!!

Share this post


Link to post
Share on other sites

I think the mansion tax - while a good start - could be very messy. You are setting thresholds based on values - a year after prices may have risen 20%. What happens if prices start to tail off - you might have been at £2.5m at the valuation date but now it would only sell for £2m. Central London prices can be volatile - and its going to be difficult to administer. And thats before you get Balls exemptions for those on low incomes (MPs) or grannies living in £5m houses who yet have no money (bar of course a £5m asset with more rooms than they need)!!!

Balls has already said that the widow in a £5 million house will be able to pay the Mansion Tax upon selling up. I am sure there will be some dispensation for MP's seeing as how important and irreplaceable they are :P .

Share this post


Link to post
Share on other sites

LVT would be easier. Is the Mansion Tax a gateway to LVT?

I'd hope so but it's like hoping Universal Credit will be a gateway to a Citizen's Income. The Mansion Tax could be so fraught with difficulty and poorly adminstered that it takes Land Value Tax off the table (before it's really even on it) as a serious revenue source. Finger's crossed your more optimistic outcome is what actually happens though.

Share this post


Link to post
Share on other sites

Balls has already said that the widow in a £5 million house will be able to pay the Mansion Tax upon selling up. I am sure there will be some dispensation for MP's seeing as how important and irreplaceable they are :P .

You just wait for the election campaign - the Tories will find that nice granny in her pearls and Versace outfit who will be rolled out to say how unfair it all is. She bought my house in Richmond Park after the war for 50p - but now its worth £5m - this mansion tax is just so unfair!

Share this post


Link to post
Share on other sites

You just wait for the election campaign - the Tories will find that nice granny in her pearls and Versace outfit who will be rolled out to say how unfair it all is. She bought my house in Richmond Park after the war for 50p - but now its worth £5m - this mansion tax is just so unfair!

Kirstie Alsopp gets very hot under the corsets in support of the-granny in-the-mansion. Seems to think London is full 'of em. Sitting outside their massive houses with a penny whistle and a tin cup.

Share this post


Link to post
Share on other sites

You just wait for the election campaign - the Tories will find that nice granny in her pearls and Versace outfit who will be rolled out to say how unfair it all is. She bought my house in Richmond Park after the war for 50p - but now its worth £5m - this mansion tax is just so unfair!

Funny all these asset rich, low income pensioners in multi-million pound homes who protest about paying a mansion tax but would have no worries about accepting a nice, unearned, untaxed profit from their property when they sell. They want to have their tea-cake and eat it.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   211 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.