Burnham versucht aktiv, die Gemeindesteuer und die Stempelsteuer abzuschaffen
Burnham actively looking to scrap council tax and stamp duty
Von ClumperFaz
Burnham versucht aktiv, die Gemeindesteuer und die Stempelsteuer abzuschaffen
Burnham actively looking to scrap council tax and stamp duty
Von ClumperFaz
46 Kommentare
The housing market will freeze to a standstill until this gets clarified. Who would pay tens of thousands on stamp duty if they could potentially wait it out. I know people will say the housing market will correct for the reduction in tax but not overnight.
The replacement property tax rumour of 0.48% sounds crazy. It’d absolutely rinse central London and other areas where rates are low. I get why the northern PM would do it but it’d be an interesting fight to say the least.
Good.
Having a tax which disincentives selling and buying is stupid. Almost universally thought to be a bad tax.
Council tax is also silly – based upon rates that last were assessed in 1991. Band A here pays about £1600 per annum. Band H pays 3 times that, 4800.
It’s not progressive. My house may be worth £170k but a house worth 10x of mine only pays 3 times the council tax rates.
So, wealthy homeowners only pay a disproportionate amount less compared to what I pay.
Find the balance right and it’ll slow down house prices but keep things ticking up so that negative equity doesn’t become an issue.
Now – how will the boomers take it, badly I’m guessing.
Nice of him to do this a few months after I spunked £20k on a house move.
Thank goodness! Stamp duty is an absurd tax. And council tax isn’t progressive. Will be interested to see what the alternatives are.
Replace.
Whatever happens it will screw us over. Taxes never go down.
I just don’t see it happening but by god it should.
Eliminating stamp duty and council-tax, along with reforming the absolute palaver that council funding (and care funding) has turned into will be a huge welcome change.
Having said that, 0.48% of the property value is just not going to be enough. For example, the 500k house (London-Essex borders) that I live in would mean a tax of £200/month, which is lower than my current CT!
My previous house in Cheshire worth 370k would pay £150/month, a lot less than the £240 it is now.
Not sure how that new revenue will cover the current council tax revenue.
Stamp Duty revenue I’m not too concerned about. It’s not huge in the grand scheme of things and the simple act of doing away with stamp duty will unlock a lot more positive activity in the wider economy which might be hard to quantify but should pay for itself.
Which is probably why this is not going to happen. The numbers won’t add up without it being high enough to piss off the southern Labour MPs they need to pass the legislation.
SDLT is widely hated on and I mostly agree, but what it gets right is that you can’t argue with the valuation because you agreed to meet in the first place.
I think this will adversely impact those in cities the most as properties tend to skew high value but low council tax.
Question is whether the trade off is worth giving poor people outside of cities who pay large council tax bills relative to their property value and income.
Why the UK can’t do what other countries do which is collect the big tax and then redistribute it to councils based on their needs and investments. Does this mean that Londoners will now be funding depraved areas in the UK? Yes. Might not sound fair but we are the country, and not small, independent polis
Stamp duty on your second+ home you OWN. If you’re selling your home, and buying another, you don’t pay stamp duty because you’re only owning 1 home. Have a grace period for it ofc. Noone needs 2 or 3+homes. But if you do, you pay for it.
Can he hurry up, I move into my new house next week
If you dont like your propery taxes, move to a smaller property somewhere cheaper.
Looking at you, boomers. Do you really need 3 spare bedrooms?
Sounds good , Can I get a refund on my stamp duty that I recently paid?
I am all for scraping stamp duty ( need to buy a home soon!) but not Council tax (mine is still too high!), I still want to pay for essential services, help the more elderly and vulnerable in my local borough . One day I too will be old and vulnerable
I live in the lower half of a house split into 2 flats. Most of the 100+ houses on my street are still full houses and very expensive. The difference between my council tax and the full houses on the street is very minimal. Mine is £170pcm, theirs about £200pcm. My upstairs neighbour pays the same as me, so combined the council get’s £340pcm from a property the same size as the ones paying £200. We are both lower income households. The council make more money from us than our wealthier neighbours.
As a first time buyer in London, this is ultimately going to hurt me, and like many others im not buying until i know i wont get double taxed, and what my finances will look like. i wont get stuck with a house i cant afford.
Given the speed a bill typically moves through parliament thats 1-2 years of a dead market.
The most fair system would be one where we tax the individuals in a house rather than penalising single home owners. There should be a flat rate per person.
How is it fair that a household of 5 adults pays the same as a single person or a couple, and yet will produce 5x the waste etc.
Well if he doesn’t scrap it. At least stop it from being regressive and based on relative value of the property or expected household income.
Cuts cuts cuts cuts, so how will the government fund pledges like defence spending increases?
Will he nationalize Jean factories?
Poll tax was the fairest tax in terms of usage of local services. Obviously this did not go down well. The only reasonable replacement is therefore a local income tax based arrangement. The current system is archaic and not for for purpose.
Bring back the Poll Tax, set the rate at a more equitable regional level to somewhat mitigate the current disproportionately high Council tax rates on the poorest parts of the country. Means test reductions/exemptions for those that can’t afford – account for the relief in the rate set, reassess the rate on a rolling basis to keep public finances in the black. Bob’s your uncle…
It’s potentially an authoritarian Labour wet dream if they can tie it to ID cards and access to public services…
it really feels like he’s preparing for an Election.
While I support reforming how councils gather tax, I’m not sure a blanket 0.48 is going to work everywhere. Most services cost the same per person – do it just means that in areas with lower house prices councils will have less money to spend while those in higher valued areas will be swimming in cash. Unless this tax is being collected centrally and distributed fairly from central government – but that doesn’t really stand by his vision of giving powers to the regions. If you take their source of income and make it something central government hands out, that isn’t going to necessarily mean councils will work independently – they may have funding withdrawn if central government doesn’t like that they are doing.
I can imagine this will be controversial but what more does someone paying more council tax get for their money , the bins are emptied the same, the emergency services respond the same, the roads are fix equally poorly…if people opinion is that they must earn more then make it a tax based on earnings that is ring fenced to your local authority…..just a thought
Good. Absolutely bonkers that a random council in the North East should have council tax as high as London boroughs or someone living 200m apart should pay a different rate. Sort it out.
Not sure how do I take this news?!
Being a Londoner, I think we will get stung or no benefit out of it at all. Unless someone can ELI 5..
Council Tax Band C
Single occupier discount should be 50% off also. 1 person living alone. Why do we only get 25% off?
Anyone that jas had to go near stamp.duty realises how stupid the tax is. Looking at trying to climb the ladder means is 12 grand.on top of deposit thats ridiculous
How are the tories taking this ? as so far Andy Burnham is going all the things both sides want are they getting abit discombobulated lol 😂?!
Oh, sounds just like „rates“ from 1980s – I’m old enough to remember the Community Charge, „much fairer“ as was based on usage, and how well it ended.
I just don’t know how realistic this all is, as much as I would like to see a change to the system.
Every single residential property in the country would have to be valued which could take a decade, and then there would ultimately be disputes because it would be in their best interest for the value to be as high as possible.
While it’s being drawn up would the market fall completely flat because people wouldn’t want to pay stamp duty and then pay a property tax too?
How much would all of this cost and would it be better to focus all this energy elsewhere?
Just scrap it and make everyone working pay more tax that way everyone is contributing bit like the poll tax but instead judt have it out of income tax instead to simplify it. Most monwy in councils is spent on adult social care anyway so everyone should be paying towards it anyway.
YES! Fucking stupid system for working out council tax bands. „How much your property was/would have been worth in 1991
I’m in a band C 1 bedroom flat next to Band A houses
Precisely because they existed in 1991 and my flat didnt
Is he “flooding the zone” with good ideas or something?
What would happen to council hose tennants, my understanding is they currently pay council tax but what valuation can be put on a house you don’t own and whilst a rented property the landlord would have to pay does this mean the local council will have to pay the valuation tax?
I’m not resident in UK so just curious.
Really, this would be one of the most transformative and beneficial things for Britain.
Maximum productivity and innovation come from an optimal match between person and role.
Stamp duty is one major force that seriously dissuades people moving to better-fit roles and generally looking to upskill.
Multiply by millions of people and it’s insane how much wealth we have lost from such a stupid tax policy.
Secondly, proportional tax on housing is another key force that helps towards getting optimal worker movement.
Consider London as an example. The economic engine of the country. Extremely high cost of housing makes it unattractive for so many talented people to move there, even though economically it would be great if they could. But they are unable to because swathes of London’s housing is occupied by economically inactive people who are able to live there in perpetuity at absolutely tiny ongoing cost, relative to the prime economic opportunity they are consuming.
The combination of scrapping stamp duty AND replacing it with a proportional housing tax would be so incredible for the UK long-term, it would genuinely make Andy the best British PM in living history.
He also needs to speed up the purchase of houses. The system we currently have is fucking useless.
I’d actually be interested in hearing this with some actual figures and no stipulation that stamp duty will be re introduced to cover short fall and also how will this affect investors in BTL? I’m all for having everybody own their own home but some people can’t afford to buy and some people don’t want to buy so they can move easier/on temporary work secondments etc. Stamp duty disincentivises buying to invest, full stop. Which as much as people won’t like it private landlords are needed to maintain a good competitive rental market – maintain the rental market it other ways by ensuring additional/or tax breaks to good quality energy efficient homes alongside this. Obviously a transfer of cost from the tenant to the landlord will inevitably increase rents by that amount – but if there is a reduction in council tax then it’ll be a net reduction in overall household cost. Unless you rent a £3,000,000 home of course.
Council taxes should be based on number of people living in the household or income. You do not control your own home price.
This is good, but I am also concerned as where the councils will get the money from instead?
I rent from my council and our CT goes into providing services like waste collection, funding to youth and support services and more.
So where/how is that shortfall going to be recouped?
I agree completely with scrapping stamp duty.
They should remove council tax, plus the exemption from capital gains tax or introduce a housing rate. Boomers holding onto properties they bought for 1.5x their salary to sell to young families at 6 times their salary has totally distorted the housing market.
Are these cuts costed? Any plans to reduce our biggest outgoings at all? Otherwise I would be a bit concerned
So how will Councils/ Treasury fill the void? It will just push house prices up more.
So say you bought a 3 bed house in the South East 30 years ago and the value of it now is three times what you paid for it, and the property tax is based on this value, there will be some people who can no longer afford to live in their home and be forced to sell. Is this one of the purposes of this property tax? Does feel a bit mean to essentially price people out their own home, but equally realise houses need freeing up for families etc.
Stagnation is how I feel about the UK atm. Someone brave enough to change the status quo is well needed.