The British middle class is dying out. The government introduces a new property tax

The new – and very controversial – real estate tax, which will replace the stamp duty, will hit the hardest working ones, which after years of the Harks could afford to buy their own homes. Minister Rachel Reeves must face a sharp criticism of the proposal of the new tribute, which would be subject to houses and apartments worth over 500,000. pounds.

Labor party so far does not come out patching a hole (almost black) in the British budget. According to estimates, the fiscal patch would have to be around £ 50 billion. At the same time, during the election campaign, they promised that under no circumstances would they raise their hands to the finances of working people, excluding raising, among others social security contributions, income tax or VAT. However, there was no real estate tax, and the government was shocked by his teeth.

As “The Guardian” informs, House owners worth over 500 thousand pounds would have to pay “proportional property tax” every year. The construction resembles a catastral tax. What would it look like in practice?

Currently when purchasing real estate over 125,000 Pounds only pay a stamp duty. Her rates are:

• 2 percent from real estate worth 125,000, pounds,
• 5 percent from 250 001 pounds,
• 10 percent from 925 001 pounds,
• 12 percent from 1.5 million pounds.

In the Think Tank onward report for the government, it was suggested to change stamp duty rates to 0.54 percent. from real estate worth over 500 thousand pounds plus an allowance of 0.278 percent from real estate with a value of over 1 million pounds. An annual tax at 0.44 percent would also be imposed separately on the owners. House values up to 500 thousand pounds, whose minimum rate would be 800 pounds per household.

There are also reports that The new tribute would only cover those who would like to buy/ sell and buy a new property. Those who remain in their “old” house would still be subject to earlier solutions. However, according to experts, the exit is unsatisfactory – it would discourage future buyers. And yet the goal set by the government was quite the opposite – he was intended to encourage the British to move to a smaller area, if they could not be able to maintain a larger one.

All these ideas, instead of stabilizing the situation on the British real estate market, swing it even more. No wonder that the opposition thunders. – Keir Starmer and Rachel Reeves promised not to raise taxes for working people, and then introduce a tribute from employment, on which the average British household will lose 3,500 pounds. Now, after unsuccessful reforms of the social care system and catastrophic management, they are preparing to repeat – emphasizes Mel Stride, treasure chancellor in the shadow office.

According to the senior advisor for economic policy at the Tony Blair Institute for “Daily Mail” James Browne, although replacing the stamp duty with tax is justified from an economic point of view, it would be politically difficult.

This will hit primarily people who have assets, e.g. in the form of real estate, but have too much cash. If the tax came into force, they would have to pay a higher tribute. In the second option, they will not release the property and will not move to the smaller, because then the tax would “catch them”. And so bad and so bad – he adds.

ed. aw

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