Member Since: 14th May 2002
10th Oct 2012
Mansion Tax & Council Tax
It seems to me that any additional tax needs to be fairly simple to administer & collect;
The problem with a Wealth Tax is that there are large areas of subjectivity and any general wealth tax will be more trouble than it is worth; Tax on the bricks & mortar alone is comparatively straight forward - as long as the assessment & collection is done via Council Tax systems and NOT HMRC. ( Anything involving HMRC will involve adding 500 pages to any Tax Manual and ensure IT meltdown)
Without having to revalue all domestic dwellings, we could simply have new/additional Council Tax bands for properties valued at (say) £1.5m outside London & 2.5M inside London and the Local Councils can collect the cash and reduce their reliance on the Central Coffers.