The welfare bill passed, but it was chaos. A party this dysfunctional and divided cannot escape the wrath of voters at the next election, says John McDonnell, former Labour shadow chancellor
They don’t even need to increase income tax, is the thing. They could just give HMRC an extra 1bn in the budget, and HMRC would bring back 8bn thanks to all the extra investigative staff.
They could put VAT on all financial services too, that would raise a few hundred million.
But the main thing would simply be to charge CGT at the same rate as income tax. That closes all sorts of loopholes when it comes to avoiding IHT etc.
I always wondered why first homes were excluded from CGT because it creates perverse incentives in the property market where a home becomes an asset with better returns than any other investment
That’s kind of by design. Every country has a kind of ‘total value’ that effects IMF loans, World Banking, and general status.
The UK is “worth” so much more on paper because of the exorbitant price of property; politicians and homeowners want to keep it high for that reason.
It would increase rental supply if people couldn’t turn (much of) a profit by selling houses that are too big for their needs. I get your point though.
They don’t even need to increase income tax, is the thing. They could just give HMRC an extra 1bn in the budget, and HMRC would bring back 8bn thanks to all the extra investigative staff. They could put VAT on all financial services too, that would raise a few hundred million.
But the main thing would simply be to charge CGT at the same rate as income tax. That closes all sorts of loopholes when it comes to avoiding IHT etc.
I always wondered why first homes were excluded from CGT because it creates perverse incentives in the property market where a home becomes an asset with better returns than any other investment
That’s kind of by design. Every country has a kind of ‘total value’ that effects IMF loans, World Banking, and general status. The UK is “worth” so much more on paper because of the exorbitant price of property; politicians and homeowners want to keep it high for that reason.
It would increase rental supply if people couldn’t turn (much of) a profit by selling houses that are too big for their needs. I get your point though.