| Topic: | Re:Re:Re:Re:CEBR figures and effects of a Mansion Tax | |
| Posted by: | Paul Green | |
| Date/Time: | 01/05/15 10:48:00 |
| Tom, I haven't run through all the numbers but there has been a significant increase in top end stamp duty rates, so any previous estimate of lost revenues will inevitably need to be revised upwards Also, you seem to be confusing people's homes and financial assets. You cant argue that there is some netting out of mansion tax and stamp duty. Many people live in their homes for a long time, 20-30 years in some cases, and have no desire to sell. To suddenly and randomly tax them because the value of their home has gone up, with no consideration of their ability to pay, the size of their mortgage etc is lunacy. It is a badly thought out tax High end property is very illiquid, you only need to see sentiment change a bit for a £10m home to become a £5m home, they are only worth what someone will pay and if you put of the marginal buyer, as well as push more property onto the market, you can have a dramatic impact. Whether that amounts to a crash remains to be seen, but the impact is already evident and will only increase if the policy is implemented. The thing that has really inflated asset prices is zero interest rates. When these go back to 5%, asset prices will fall. Will people then get their tax refunded...? There is also simply no clarity on how the annual charge and threshold will evolve. My bet would be the threshold will lower and the charge go up, just as has happened with all the other taxes ever introduced in this country. |