Tag Archives: mansion tax

The Independent View: Location, location … taxation? The benefits of a locally-driven mansion tax

A tax on high-value property is a long-standing Liberal Democrat ambition, yet one which remains controversial. If and when it is adopted by government, it must be directed locally if it is to address key concerns.

The chief benefit of a mansion tax is to discourage purely speculative housing purchases. Falling demand for luxury property from prospective owners unwilling to pay tax on homes they are not inhabiting would encourage a greater focus from developers on homes affordable to the majority.

Of particular concern is the 70% of newly built homes in central London bought by non-UK residents in 2013. Existing housing stock in an under-supplied market must be used more efficiently. Combined with other new taxes on such property and a strengthening pound, the effect of a targeted mansion tax could be especially strong on ‘non-dom’ owners.

This complements the inherent advantage of a mansion tax. By taxing value arising from features inherent to the property such as its location or design rather than endogenous decision-making by economic agents, it avoids the negative incentive effects associated with income tax. 

Posted in Op-eds and The Independent View | Also tagged | 37 Comments

“What I need is what I think the Liberal Democrats are proposing” says Labour’s Peter Mandelson on Mansion Tax

Well, well. Who would have thought Peter Mandelson of all people would back a Liberal Democrat policy over a Labour one?

The Guardian has the story:

Speaking on Newsnight on BBC2, Mandelson said he favoured finding new ways of taxing property in Britain. But he added: “I don’t happen to think that the mansion tax is the right policy response to that. I think it’s sort of crude, it’s sort of short-termist.

“What we need is what I think the Liberal Democrats are proposing and that is the introduction of further bands that relate to different values of property within the council tax system. That’s what I would like to see. It will take longer to introduce, that’s true, but it will be more effective and efficient in the longer term than simply clobbering people with a rather sort of crude short term mansion tax.”

Mandelson is the latest senior Labour figure to criticise the party’s plan to impose a tax on properties worth more than £2m to help raise £1.2bn towards the £2.5bn costs of a new “Time to Care” NHS fund. This is designed to support 20,000 more nurses, 8,000 more GPs and 5,000 more care workers by 2020.

Posted in News | Also tagged and | 52 Comments

Opinion: Council tax reform is better than the Mansion Tax

The November 2014 AdLib makes interesting reading. Amongst other issues, it set me thinking about the Mansion Tax. It is axiomatic of any decent society that those most able to pay should contribute the greatest amount towards the cost of maintaining it; especially in respect of social costs.

This seems to be an unpopular concept with many on the right of politics, who would presumably see themselves as paying more; while those on the left may be tempted to adopt it as an unthinking mantra, without considering the practical implications. Nevertheless, we must find fair ways of making the better off pay their fair share.

Posted in Op-eds | Also tagged | 17 Comments

Jeremy Browne hits out at “arbitrary” mansion tax

Jeremy Browne - Minister for Crime PreventionIn today’s Times (£), Jeremy Browne slams the Lib Dem plans for a mansion tax:

Plans to introduce an “arbitrary” mansion tax on expensive homes will “undermine the fundamental principles of private ownership”, a former Lib Dem minister has warned.

Posted in News | Also tagged and | 72 Comments

Opinion: Making property tax fairer

Mansion Only - Some rights reserved by Gerg1967One of the issues that we heard frequently on the doorstep in Haringey in the run-up to the Council elections was fear over the mansion tax. Many of our wards are in nice leafy areas, where the ridiculous rises in house prices over the last year have left some relatively modest family homes pushing up to the £2m barrier. A retired builder who had bought his home for under £50,000 forty years ago told me that he would never vote for us …

Posted in Op-eds | 35 Comments

LibLink: Vince Cable: Smell the coffee, Boris. The Mansion Tax has slipped in already

Mansion Only - Some rights reserved by Gerg1967This story appears under the byline of a “Daily Mail Reporter” which is a bit odd, because I don’t think they’ve let any of them into the Cabinet yet, and certainly not any who oppose the Tories. The reference to “my Cabinet colleagues’ kind of gives the game away that it’s our Vince who has taken on Boris over the Mansion Tax. Now, there’s another debate I’d like to see alongside Nick vs Nigel. Vince vs Boris. One day, maybe..

Anyway,  Vince started by pointing out that action was taken in the Budget to tax corporate property buying:

One less publicised move was a crackdown on people using high-value property to make easy capital gains from property inflation and then dodge tax, hiding behind a corporate façade.

At a time when families are desperate for housing, thousands of luxury flats sit empty in tower blocks along the Thames. The Government is stopping this abuse by charging a penal rate of stamp duty and a charge on the property value – a mansion tax.

Posted in LibLink | Also tagged , and | 8 Comments

Higher-rate tax and Danny Alexander’s time-limited dead body

This was the couldn’t-be-clearer headline in the Mirror today, atop an interview with Lib Dem chief secretary to the treasury Danny Alexander:

danny alexander mirror headline

Defiant Danny Alexander today opened up a fresh rift within the Coalition Government by vowing to block Tory plans for yet another tax cut for the rich. … His comments will enrage Conservative MPs who are pushing to slash the rate from 45p ahead of next year’s General Election. It comes just days after David Cameron refused, on three occasions, to rule out cutting tax. But

Posted in News | Also tagged , and | 31 Comments
Advert



Recent Comments

  • User AvatarRoland 27th Sep - 1:45am
    Rebecca, Tim's speech and the webinar are not primary sources. Given it seems you are more familiar with this material and specifically the OECD report...
  • User AvatarManfarang 27th Sep - 1:10am
    Jayne “BJP workers have sacrificed their lives for the cause of democracy. Violence is not the right road to democracy. Ahuti must be discussed at...
  • User AvatarLorenzo Cherin 27th Sep - 12:53am
    Stevan I see your point in this , but my view is if those like you or I or any of us who have ever...
  • User AvatarStevan Rose 27th Sep - 12:20am
    The problem is, Lorenzo, that you and I and 97% of this Party have no influence to insert radical elements, new ways of working and...
  • User AvatarLorenzo Cherin 26th Sep - 11:33pm
    A lot of good sense in the words above from Tony H, Stevan Rose and Tim Hill, different though they are in views. My view...
  • User AvatarLorenzo Cherin 26th Sep - 11:26pm
    Rebecca , very good to see you on here, you have not been regularly commenting , I liked your previous contributions and considerable knowledge on...