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reddog

If Corbyn or his successor with a similar ideology becomes prime minister, could a million pound house be a liability?

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As per the title.

 

Corbyn did well on Thursday, it looks like he has solidified the Labour position on drastic tax and spend.  Surely eventually there will be a recession in the middle of an election campaign and labour will get in again.

 

But how would he or a successor tax and spend?

 

Financial assets are flexible, and can be moved easily to another country.  Even whole companies can re domicile.

 

But what about houses?  Particularly expensive houses?  These cannot move (ok, I know people have registered them offshore, but that could be stopped).

 

Are these, and even average houses a likely target for steep taxes?

 

Can that expensive property asset quickly become a liability?

 

 

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I think the vat on private school fees will hit London property too. It's not a small amount plus post-MMR has a direct affect on the amount you can borrow. 

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Corbyn will get power if he pretty much promises to crash housing. There are more renters than owners.

Too many commentators think Brexit is behind the uk's problems. But the issue is house price inflation. Thats what is politicising people mire than any other issue.

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18 minutes ago, thisisthisitmaybe said:

Corbyn will get power if he pretty much promises to crash housing. There are more renters than owners.

Too many commentators think Brexit is behind the uk's problems. But the issue is house price inflation. Thats what is politicising people mire than any other issue.

I disagree with that, voters have different sets of priorities past housing.I also think we are still a long way off someone like Corbyn getting into power. 

Labours surge in support came just as much from tactical voting, especially from London by those unwilling to let Brexit impact their own lives. Many of that vote base was on the basis of the status quo. Labours vote base is frankly just as fragmented still on Leave/Remain North/South - it's a party of bastards you can argue and much less unified than the Tory core support.   

I just as much expect labours vote base to ebb away because already John McDonnell has talked about supporting leaving the single market still. Londoners will not be liking that noise.

Now the elections over the Tories will now attempt  to proceed with Brexit and Corbyn/Labour will not be able to sit on the fence. 

Edited by casual_squash

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I find Corbyn pretty scary, I have already done quite a bit to mitigate against him or a similar successor.

 

But even I realised on Thursday night I had been way too complacent.  I think sooner or later someone with his ideas will get in, then it will be tax all the way.

 

I am actually very glad that I never bought into the UK property market.  If you think about it, it is a very very inflexible asset.  The only thing it has going for it as an asset, is it is a hedge against inflation, which will come.

 

(Obviously you can live in it as well, but that is the last thing people care about as they tell you how much their house has gone up)

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It doesn't necessarily have to be a lefty that turns the screw on tax. The state will not go away quitely.

Once the tax base shrinks sufficiently who ever is in power will try and appropriate anything within their grasp.

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If Corbyn or his successor with a similar ideology becomes prime minister then a big rise in inheritance tax is likely.

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22 minutes ago, Will! said:

If Corbyn or his successor with a similar ideology becomes prime minister then a big rise in inheritance tax is likely.

Isn't it thought the proposed "Dementia Tax" was the main reason May did poorly ?   At least the earner got to benefit from their wealth in their lifetime.

It was just balanced against those that were prudent with storing wealth, while those who spent everything in their lifetime get free old age health care.

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19 minutes ago, Will! said:

If Corbyn or his successor with a similar ideology becomes prime minister then a big rise in inheritance tax is likely.

http://www.express.co.uk/news/politics/807196/inheritance-tax-families-affected-philip-hammond-labour-jeremy-corbyn-general-election

That looks good to me. My parents house is "worth" more than the threshold. Both of them, skilled professionals, voted for Corbyn. As long as they distinguish between unearned wealth and earned wealth it's good to me. I don't care about HPI.

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16 minutes ago, Odin said:

Isn't it thought the proposed "Dementia Tax" was the main reason May did poorly ?   At least the earner got to benefit from their wealth in their lifetime.

It was just balanced against those that were prudent with storing wealth, while those who spent everything in their lifetime get free old age health care.

My understanding (and I may well be wrong) is that "Dementia Tax" unsettled voters because it involved putting a charge on people's homes while they were still living in them.  I don't think taxing people after they've died unsettles them as much, although their heirs may take a different view.

Edited by Will!

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He or his successor will go very hard along the lines of the annual tax on enveloped dwellings (i.e. companies that hold residential property).

They'll get taxed through the roof. Easy pickings and there's so much criminal money there I don't think any voters will have a problem.

If the companies decide to relinquish it then that in turn adds lots of properties to the market and pushes them further down.

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Corbyn doesn't need to come to power. The Tories can steal a lot of Labour's ideas as they now know it will appeal to a lot of people and the only other option is Labour anyway. I think we will see some form of property tax (similar to LVT) seeing as they have to find money now to pay for social care. And Labour got lots of votes even with the potential for LVT in their manifesto. It is now in the political consciousness. They will give it a wacky new name though.

Perhaps they will now do a proper review of council tax bands?

Edited by fru-gal

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6 hours ago, fru-gal said:

And Labour got lots of votes even with the potential for LVT in their manifesto. It is now in the political consciousness. They will give it a wacky new name though.

Perhaps they will now do a proper review of council tax bands?

I think this is the most likely. And it's long overdue. They did a revaluation in Wales but even that hasn't changed since 2005.

 

Edited by mrtickle

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16 hours ago, Will! said:

My understanding (and I may well be wrong) is that "Dementia Tax" unsettled voters because it involved putting a charge on people's homes while they were still living in them.  I don't think taxing people after they've died unsettles them as much, although their heirs may take a different view.

Do you mean you think they were going to part with actual money before they died? I think that's completely wrong; the charge against the house was specifically designed so that debt accruing was paid out of the estate - which would include the house. To that extent it's just like an inheritance tax.

 

 

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20 hours ago, reddog said:

As per the title.

 

Corbyn did well on Thursday, it looks like he has solidified the Labour position on drastic tax and spend.  Surely eventually there will be a recession in the middle of an election campaign and labour will get in again.

 

But how would he or a successor tax and spend?

 

Financial assets are flexible, and can be moved easily to another country.  Even whole companies can re domicile.

 

But what about houses?  Particularly expensive houses?  These cannot move (ok, I know people have registered them offshore, but that could be stopped).

 

Are these, and even average houses a likely target for steep taxes?

 

Can that expensive property asset quickly become a liability?

 

 

Will it be worth a 1m if they got in power?

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Quote

 

The World’s Unlikeliest Socialists

Kensington Palace is the official residence of Britain’s future king, William. The West London district is home to bankers, celebrities and aristocrats of all nations drawn to its immaculate Georgian squares, tasteful luxury shops and easy access to the green spaces of Hyde Park. Even in one of the world’s most expensive cities, the cost of admission is eye-watering: 1.3 million pounds is the price of the median home, with the finer places going for many times that.

Despite those blue-blooded credentials, Kensington rejected the Conservative Party for the first time ever in last week’s election. The Labour Party, led by unabashed socialist Jeremy Corbyn. Conservative Prime Minister Theresa May’s appeal to nationalism felt like a slap in the face to a district that relies on international flows of talent, ideas and money. Bloomberg

 

People's political mood and priorities has changed.

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1 hour ago, rollover said:

 

People's political mood and priorities has changed.

I actually think most of the people here are probably either

1. champagne socialists i.e they want to talk about these issues but when the realise it affects their pay they will revert

2. So far above the rest of us that they will be able to avoid any measures implemented as their income is largely offshore and they don't really pay all that much tax, they'd probably pay a little more, but in exchange for not beings stabbed in the street through revolution they think its a small price to pay.

3. They voted for soft brexit as that keeps them in the gravy train

Thanks

Rohit

Edited by katchytitle

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3 hours ago, ****-eyed octopus said:

Do you mean you think they were going to part with actual money before they died?

No.  I think voters understood that the proposed "Dementia Tax" did not involve paying money before they died, but I think they feared being rooked by the local authority if they became frail and the possiblity of being repossessed and made homeless at the end of their lives if there was a bureaucratic **** up.

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On 2017-6-11 at 0:14 PM, thisisthisitmaybe said:

Corbyn will get power if he pretty much promises to crash housing. There are more renters than owners.

Too many commentators think Brexit is behind the uk's problems. But the issue is house price inflation. Thats what is politicising people mire than any other issue.

Since when?

He might win the votes from the young but that would be played off against older people with houses voting for anything but an HPC

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On 2017-6-11 at 3:28 PM, doomed said:

It doesn't necessarily have to be a lefty that turns the screw on tax. The state will not go away quitely.

Once the tax base shrinks sufficiently who ever is in power will try and appropriate anything within their grasp.

Yeah, I agree with that, it was always hinted that May would have to put up tax after the election (that is why the manifesto was so vague)

 

No she will have to pay for both the Tory and DUP bungs.  Fairly sure tax will be going up in some form.

 

But the Corbyn give away was going to be gargantuan compared to Conservative/DUP give away.

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On 11/06/2017 at 0:02 PM, reddog said:

Can that expensive property asset quickly become a liability?

In a word....YES.

 

You dont really think Corbyn and his pals will let that kinda wealth just sit about un-taxed do you?

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The usual socialist ploys are to introduce exchange controls so as to prevent capital flight (it doesn't of course) and then to force pensions (including private ones, SIPPS etc) to be fully invested in government bonds. 

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Highly unlikely considering said person lives in such a £MILLION + house. 

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