Property tax alternative to stamp duty wins backing from…
At least 18 MPs have come out in favor of a new proportional annual property tax that would be levied on the current value of homes.
The TPP, advocated by a campaign group called Fairer Share, would replace council tax, which is currently based on 1991 property assessments, and would also replace stamp duty property tax.
The campaign wants the TPP to be introduced at a flat rate of 0.48% of property value, and describes it as a new tax which would “raise a £5.6billion surplus for Her Majesty’s Treasury and is a way for the government to overhaul a deeply regressive regime”. and unfair system.
It is claimed that such a move could lead to lower bills for 77% of the country, with the average household likely to be better off by £556 a year – however, bills would rise significantly for almost a quarter of households.
The Fairer Share campaign says replacing the stamp duty with the TPP would “remove a barrier to home ownership for millions of young families and make it easier for older households to downsize. Our proposed TPP would instead spread the stamp duty burden over 23 million homes, which would mean that instead of one big tax bill each time someone buys a home, the tax is spread over the period of ownership.
MPs supporting him are evenly split – nine Labor and nine Conservatives. Among the MPs, the most prominent are Tory Kevin Hollinrake, the former chairman of the Hunters estate group, and former Labor shadow chancellor John McDonnell. There are also several Conservative, Liberal Democrat and House of Lords members in favour, as well as the Labor Mayor of Greater Manchester, Andy Burnham.
The tax would include a surcharge for owners of second homes and foreign owners of property in the UK, raising an additional £4.5billion, advocates say.
The campaign has commissioned a poll of 4,000 people suggesting the introduction of such a tax could determine who wins the so-called ‘red wall’ seats in the next general election – seats won by the Conservatives in 2019 and allocated to them giving a substantial majority in the House of Commons.
One of the supporting MPs – Hartlepool Conservative Jill Mortimer – writes on the Fairer Share website: “The absurdity of the council tax system is such that households in my own constituency currently pay an average of 1.31% of the value of their property each year, while for residents of Westminster the burden of tax council tax rates are only 0.09% In other words, council tax rates in Hartlepool are higher than they are for comparative strips in many other parts of the country, often much richer.
“Even with the rebates, council tax will still be a system that favors millionaires over millions. By taking bolder steps to minimize council tax pain, the Chancellor would steer the leveling program to a place where it can make a real difference to voters’ wallets today rather than a decade from now.
“To meet the needs of Red Wall voters and beyond, the government could overhaul the outdated council tax bracket system, which is based on 1991 prices and favors taxpayers in areas with low tax brackets. real estate rose the most. This would be a necessary step in the right direction. We should look closely at the possibility of abolishing council tax and replacing it with a fairer system.
Last year the Daily Mail, citing unnamed government sources, said a version of the PPT was being considered by the Treasury but dropped when it was discovered that a quarter of households paying higher bills were mainly at the heart of the Conservatives in the south of England.