Reeves considering new property tax on houses worth more than £500,000
The Treasury examines a new tax plans on the sale of more than £ 500,000 as part of the shaking of the stamp tax and the council tax.
Chancellor Rachel Reeves asked the authorities how to bring a new “proportional” real estate tax and the impact of this autumn budget. Ministers have already been informed about the proposals that can be submitted in this parliament, . Protector Reports.
Under an option, the national property tax will change the stamp tax in the occupied houses of the owner. In the medium term, a second stage can see a local real estate tax that replaces the council tax, which is a movement designed to repair the financing of local authorities.
The final decision was not taken. Treasury resources stressed that although a national tax can be implemented in the coming years, the reform of the Council tax will last longer and will probably depend on a second period.
The examination reflects the increasing pressure on the chancellor to impose more reserve taxes. Angela Rayner, Labour’s leader, urged Mrs. Reeves to take into account the measures targeting the property of property. MS Reeves is under the pressure of Labour to earn additional income without promise not to increase taxes to working people.
If accepted, the new tax would be paid by the workers who sold more than £ 500,000. The amount, based on the value of the property, the rate determined as central and collected by HM income and customs. It does not change stamp tax in the second houses.
According to Nationwide, the average house price in the UK is 272,664 in July. The existing stamp receipts from primary houses vary significantly depending on the housing market and collects £ 11.6 billion last year. Treasury officials believe that the national real estate tax will be a more stable source of income and will eventually increase a similar amount.
Unlike the stamp tax that is currently valid for approximately 60 percent of home sales and paid by buyers, it will affect only one -fifth of new tax transactions.
The proposals were informed last year with a 48-page report published by the Central-Health Thinking Corporation. Dr. Written by Tim Leunig, the couple based on property values determined the national and local “proportional real estate tax”.
Dr Leunig wrote: “These suggestions will make it easier to move the house for a better job or being close to the family as well as being more fair.
