Me house is me pension

[AtW]

For the Govt...

“ British homes could be the new source of billions of pounds in much needed revenue for the Government in the form of a wealth tax, following the economic devastation of the coronavirus pandemic.”

How would a wealth tax work and what would it look like?

[Mordac]

The Social Market Foundation, a think tank, has called for new taxes to be levied on increases in the value of homes.

[Whorty]

For the Govt...

“ British homes could be the new source of billions of pounds in much needed revenue for the Government in the form of a wealth tax, following the economic devastation of the coronavirus pandemic.”

How would a wealth tax work and what would it look like?

Can't see it happening as MPs are not likely to tax themselves any more than they need to. Also, a tax like this would be quite short lived if the tax stalls the price growth and hence the cost of administering the tax would be greater than the revenue returned from the tax.

Too many Brits have their wealth in their home, so can't see many voters supporting this unless the start of the tax is quite high (can't see the full story behind the pay wall so not sure on the details).

Fair to say, nothing to see here. As you were.

[AtW]

CGT on real estate should be easy to administer - just take % from difference between new sale price vs previous as recorded in the Land Registry - take money at source too, like stamp duty before money even reach seller.

Fair, easy - but won’t happen.

New annual wealth “levy” on houses though...

[jamesbrown]

CGT on real estate should be easy to administer - just take % from difference between new sale price vs previous as recorded in the Land Registry - take money at source too, like stamp duty before money even reach seller.

Fair, easy - but won’t happen.

New annual wealth “levy” on houses though...

What happens if you bought a flat above a kebab shop and added a conservatory?

[AtW]

What happens if you bought a flat above a kebab shop and added a conservatory?

CGT is levied on selling, not buying (like stamp duty)

[Whorty]

CGT on real estate should be easy to administer - just take % from difference between new sale price vs previous as recorded in the Land Registry - take money at source too, like stamp duty before money even reach seller.

Fair, easy - but won’t happen.

New annual wealth “levy” on houses though...

Add into it money spent on the property to bring it up to standard, so increase in value may not be just inflation. If you don't allow this then no one will ever want to bring derelict properties back to market. So no, not that simple.

Property would need to be index linked. Doing this still sees an increase, but it's not as dramatic as Gigi and his chip on their shoulder ilk think it is.

Also, what about when house market corrections take place - to keep things equitable we should then allow people to get a tax rebate off the government.

Nah, can't see it happening with private main residence properties and it's pretty much already there for 2nd + homes.

[jamesbrown]

CGT is levied on selling, not buying (like stamp duty)

Yes, but you sold it with a conservatory. Are you going to levy capital gains on the £2.99 profit you made on your plastic conservatory?

[jamesbrown]

If you don't allow this then no one will ever want to bring derelict properties back to market. So no, not that simple.

This. Quite complicated, actually. In comparison, a wealth tax is fairly straightforward (and proven in many other jurisdictions) - but that won't happen either.

They aren't going to faff around with any of this nonsense when they already have an oven-baked vote loser ready to go - dramatically reduced tax relief on pensions contributions for higher earners.

[AtW]

Yes, but you sold it with a conservatory. Are you going to levy capital gains on the £2.99 profit you made on your plastic conservatory?

I’d levy much more after aggressive tax investigation into suspected tax fraud (£2.99 is clearly false valuation, affects stamp duty too).

VAT is taken on items worth 10 pence, no reason why CGT can’t be taken on £2.99, zero extra admin cost if done at transaction stage for which you paying already, overpayment (due to CGT allowance) can be claimed back via tax return