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Sunday, May 10, 2015


David Cameron’s better-than-predicted success in the polls will generally be seen as good news for owners of London property, as it will remove many of the uncertainties that have affected the property market over the past few months.

 

Story sourced from chestertons.com


A Conservative Government will mean:

  • No Mansion Tax
  • No rent controls or mandatory landlord registration scheme
  • No further changes to Council Tax or Stamp Duty
  • No crack-down on Non-Dom status
  • Raising of the Inheritance Tax threshold to £1m
  • Extension of the Help to Buy Equity Loan and Mortgage Guarantee schemes
  • Introduction of a new Help to Buy ISA

For landlords, the following reforms may apply:

  • Allow tenant subletting
  • Extend right-to-rent checks nationally
  • New rules to prevent revenge evictions
  • Continue to limit councils’ power to license local landlords

So what do these changes mean for the London property market?

  • Buyers and sellers of properties around and above the £2 million mark will be relieved that there will be no Mansion Tax, and this end of the market is expected to see increased activity almost immediately.

  • Mortgage markets will likely benefit as interest rates are set to remain low for some time.

  • Households with concerns about Inheritance Tax should welcome the Tories’ promise to raise the single person allowance from £325,000 to £500,000 and the married couple/civil partner allowance from £650,000 to £1m.

  • First-time buyers will benefit as Help-to-Buy should be extended and a new Help-to-Buy ISA introduced.

 

The unexpectedly swift and decisive outcome of this election has done much to lift the clouds of uncertainty and unpredictability that have dogged the property market across the first quarter of 2015. While there will still be regulatory changes to consider and challenges to be identified and overcome, they will be a lot more manageable and less far-reaching than they could have been.

 

Text sourced from chestertons.com


posted by FairHomeTax Team  10.05.15 11:56



Friday, January 23, 2015


LABOUR IGNORING FAIREST WAY TO RAISE REVENUE FOR NHS BY BACKING THEIR PUNITIVE MANSION TAX, NEW REPORT REVEALS

  • FairHomeTax UK report by the CEBR recommends a fairer and more progressive approach to property taxation
  • Works by improving existing mechanisms, like council tax, to raise billions for NHS and local services while directly benefitting nurses and public sector workers
  • Demonstrates Labour’s Mansion Tax is flawed and an ideologically driven piece of electioneering that won’t raise the £1.2 billion Miliband promises to
  • Shows that politicians from all parties are ignoring the elephant in the room – council tax – which hasn’t been reviewed to reflect changing property prices in over 20 years
  • Sets out path to a more equitable home taxation system, doing more to improve the NHS and local services, faster.
FairHomeTax UK, an independent campaigning group concerned with fairer property taxation in Britain, has commissioned the highly respected economics organisation, the Centre for Business Research (CEBR), to investigate Labour’s Mansion Tax proposals ahead of the 2015 general election. The research, published in two parts, reaches its conclusions today and the findings will come as a blow to Ed
Miliband and Labour’s much-vaunted Mansion Tax proposals. Although a populist policy, Labour’s proposed Mansion Tax is punitive and limited in its scope. It is difficult and costly to enforce, introduces more red tape and bureaucracy and is ideologically driven rather than focussed on improving public services. The first part of the CEBR report, published in December 2014, found that:

  • Labour’s Plans will kill house sales
  • Stamp Duty will fall by £2bn
  • Elderly homeowners will be hardest hit
  • Mansion Tax won’t raise the promised £1.2bn for NHS
  • Homeowners will be able to easily avoid paying Mansion Tax
  • Mansion Tax is unworkable and unsustainable 
In the latest addition to the report, published today, the CEBR and FairHomeTax sets out an alternative and more
equitable approach to property taxation by reviewing the Council Tax system. Its findings revel that:

  • The addition of three Council Tax bands above H could contribute £4.7 billion additional revenue to tax receipts in 2015-16.
  • This more than trebles the amount Labour claims Mansion Tax will raise for the NHS
  • A total income from this revised common sense approach to the Treasury and local authorities would be £25.6 billion by 2019-20
  • AND It will only cost £257 million to implement 
Like the Mansion Tax, this reformed system would shift part of the tax burden to occupants of very high value properties and those that have benefited from above average house price growth. BUT, given that the average cost of moving up one band is £350 annually, the reform is unlikely to create substantial market distortions.Under the existing system of council taxation, a resident of a property in Band A, B, and C pays on average £998, £1,165, and £1,331 respectively in annual council tax. Under the reformed system residents of Band A properties would pay no council tax, while those in Bands B and C would pay significantly reduced amounts.

As well as injecting significant funds into the NHS, this implementation of a fairer and long overdue council tax review will benefit the very people Labour claims to support - nurses, teachers and other public sector workers. The CEBR reports reveals that in key regions of the UK, Bands A, B and C houses are disproportionately occupied by public sector workers who will directly benefit from the proposes revision. A fairer system of council taxation would also help health workers indirectly by eliminating or reducing the council tax burden in the bottom three bands.Those who can pay a little more will benefit from better local services, instead of their punitive immoral unworkable Mansion Tax idea.

Howard Cox, well known Public Affairs Campaigner and Founder of FairHomeTax.uk said: "For too long politicians from all parties have ignored the proverbial elephant in the room: Council Tax. Despite massive changes in the value of British houses, it’s a quarter of a century since the council tax system was looked at. Our FairHomeTax.uk report demonstrates that a revised system - with those living in the most valuable houses paying more - would yield billions for local services and the NHS, while reducing the council tax burden for those living in the least expensive properties. This fairer, more progressive approach to property taxation compared with the proposed Mansion Tax would provide a shot in the arm to local services and the NHS through existing channels, rather than adding more red tape. FairHomeTax's report reveals that Labour's proposed Mansion Tax on the top 0.2% of houses, which could cost tens of millions to administer and would be difficult to enforce, is a far less effective revenue raiser compared with a sensible reassessment of the council tax bands. It exposes Labour’s ideologically driven and punitive mansion tax as a shameless piece of electioneering whose principle could be applied more practically, for less money in a way that directly helps the majority of working people. Parliament should debate the proposals by FairHomeTax and the findings of the CEBR as a matter of urgency before the General Election.” 



posted by FairHomeTax Team  23.01.15 12:55



Thursday, January 22, 2015


Like the Mansion Tax, a fairly reformed council tax system would shift part of the tax burden to occupants of very high value properties and those that have benefited from above average house price growth. BUT, given that the average cost of moving up one band is £350 annually, the reform is unlikely to create substantial market distortions or unfairness.  See Daily Mail's Coverage of the FairHomeTax CEBR Report on how Council Tax should be the better option to raise revenue for the NHS and Local Services. At least there should be a debate in ParliamentDaily Mail Coverage of FairHomeTax's CEBR Report
 
Daily Mail Newspaper 22 Jan 2015 Page 10


posted by FairHomeTax Team  22.01.15 06:05



Tuesday, November 4, 2014


Howard Cox Founder of the FairHomeTax Campaign

Hi, with TV broadcaster and motoring journalist Quentin Willson, I have helped stop £30bn of tax hikes at the pumps over the last 5 years through the FairFuelUK Campaign. In fact we changed Government Policy in this area, showing that cutting duty on fuel is good for GDP, jobs and inflation.
 
As a consequence of this successful campaign, I have been asked by several different interested groups and individuals to stop the Mansion Tax. As an apolitical independent I view the entire UK property taxation system as cumbersome.  I feel strongly that we should all come together to make it a fairer and more equitable system. It needs reform to generate the right level of income, not just for the NHS, but for other public services too. No one could argue with that aim, or could they?

It's important to understand why I am against Labour's Mansion Tax. Ed Ball's idea of raising more tax to help the NHS is laudable. However, Mr Osborne has "gazumped” him in his Autumn Statement and announced an extra £2bn for the NHS plus a fairer stamp duty approach. 

Labour's Mansion Tax will not work securely, or consistently, to meet their target of funding 30,000 new nurses. See why at http://www.fairhometax.uk/mansion_tax.html  Instead, by simply re-evaluating all aspects of current property taxation and to make them fairer and more progressive, this approach is the more honest option. The Tories should take note too. Anyone disagree?
 
The perceived "rich” people (and I am most certainly not one of them) already generate a huge amount of tax, investment and employment in the UK. Labour know they will not get their vote. They don't care as they are cognisant that 70% of the public agree with the Mansion Tax to fund more nurses. There is no point in ignoring Labour's emotive arguments in their left wing "politics of envy”. Their message is working north of the Watford Gap. 

What Labour doesn't get yet, is that Mansion Tax will simply not work to raise an extra £1.2bn. For example, amongst the many arguments against it, "rich” people will use skilled lawyers to avoid this taxation and make it legally impossible for it to be claimed. I have spoken with many of the 'Mansion Tax Targets' and, without fail, all would be prepared to pay more in council tax. Such a more even-handed taxation approach would bring in a wider group of home owners who would willingly (in most areas of the UK) give more in tax to help the NHS. So another tax is not needed. Why doesn't Labour and the Tories jump on this option? 
 
It's so easy to count the number of houses worth "x” and multiply this by a tax percentage take on their value. The resultant figure however, is indefinable and will be like relying on a chocolate teapot. Useless in terms of functionality and reliability! 

This ill-informed based tactic will, in fact, depress all levels of the property market and could be catastrophic on other taxes too, including those growth taxes that are generated through the housing industry, and self motivated entrepreneurs who already invest significantly in UK Ltd.
 
In common with the public, I see whingeing celebrities coming out against this tax for their own personal greed. Their input only serves to help Labour's belief that it's just the wealthy and famous who are complaining about this tax. We have to counter that belief!
 
I decided to accept the campaign challenge and to firstly get objective evidence-based explanations. Then use the findings to persuade Labour to rethink their tax raising approach. 
 
I have commissioned independent on-going economic modelling and market research companies, the CEBR and ComRes, to get a real take on the future viability of this levy. Please see the summary of their findings at http://www.fairhometax.uk/CEBR_MANSIONTAX.html with extracts published in the Daily Mail article below:
 

It's clear from these Independent professionally produced reports, Mansion Tax will most certainly not work for Labour or the NHS. 

It's time to re-think and reform all existing property taxation. Please help us to convince Labour to take this on-board and work with all Parties to raise more NHS funds using a more effective, motivational, economically stimulating and less punitive approach.
 
Please sign up, support and donate to the FairHomeTax Campaign 

Howard Cox

Founder of the FairFuelUK Campaign and the FairHomeTax Campaign



posted by FairHomeTax Team  04.11.14 18:34





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For more details email contact@fairhometax.uk Tel: 07515421611   -  FairHomeTax, 1 Rammell Mews, Cranbrook, Kent TN17 3BQ

The Campaign for Fairer Tax on UK Homes is run by Howard Cox, the founder of the FairFuelUK Campaign.  Howard Cox is a staunch campaigner for stimulating the economy, motivating consumers and fighting unfair taxation. FairFuelUK, is the Nationally Recognised Award Winning Campaign fighting for lower petrol & diesel prices and is widely accredited with stopping £30 billion of road user taxes being levied on businesses & public in this Parliament. Without FairFuelUK prices at the pumps would be over £1.60 per litre. Its time for all Parties to recognise that the family home is not the tax cash cow for their spending aspirations. A property taxation reform is long overdue.