Private schools, times a changing?

[macron]

GT03ROB said:

There will be working people in £1m houses, earning less than 100k & where are they going to find £20k from to pay that?

Roll up interest like equity release.

[okgo]

GT03ROB said:

There will be working people in £1m houses, earning less than 100k & where are they going to find £20k from to pay that?

The same can be said all the way up to £3-4m plus really.

It would be mental to do that without some kind of lever to protect people that had either been there fking ages or people that just bought. I’ve just bought a house and there isn’t that amount of slack in the budget unless I want to not save for my future.

[brickwall]

GT03ROB said:

brickwall said:

The simple method would be existing council tax (proceeds going to council) then a ‘super tax” of say 1-2% of value above £1m with the proceeds going straight to HMT. So if you live in a £5M house in Westminster, you’re about to get a big bill.

There will be working people in £1m houses, earning less than 100k & where are they going to find £20k from to pay that?

That’s why they’d set a base threshold of £1M.
So if you’re in a £1.2M it’d be (£1.2M - £1M)*(1%) = £2k/yr
It only really starts to sting at £2M above, at which point the political narrative is “we’re asking multi-millionaires to pay a few thousand extra”

[PhilboSE]

brickwall said:

That’s why they’d set a base threshold of £1M.
So if you’re in a £1.2M it’d be (£1.2M - £1M)*(1%) = £2k/yr
It only really starts to sting at £2M above, at which point the political narrative is “we’re asking multi-millionaires to pay a few thousand extra”

It’s the most insidious form of taxation. The houses I’ve bought have come from earned income on which I’ve paid the highest levels of tax. And then I’ve paid stamp duty bills running into hundreds of thousands of pounds. All of which is ok, and priced into my affordability calculations at the time. It’s egregious to come along after the event and now say “it’s only fair you pay £xx,000 more every year”. There’s just no basis for it, other than the simple minded “you’re rich, we’ll have your money”, totally disregarding the tax contribution made to get to that point.

[McGee_22]

brickwall said:

GT03ROB said:

brickwall said:

The simple method would be existing council tax (proceeds going to council) then a ‘super tax” of say 1-2% of value above £1m with the proceeds going straight to HMT. So if you live in a £5M house in Westminster, you’re about to get a big bill.

There will be working people in £1m houses, earning less than 100k & where are they going to find £20k from to pay that?

That’s why they’d set a base threshold of £1M.
So if you’re in a £1.2M it’d be (£1.2M - £1M)*(1%) = £2k/yr
It only really starts to sting at £2M above, at which point the political narrative is “we’re asking multi-millionaires to pay a few thousand extra”

What about pensioners who bought a house for a few thousand 40 years ago and are living the most meagre lives on small pensions who live in house now worth over £1million?

[okgo]

PhilboSE said:

It’s the most insidious form of taxation. The houses I’ve bought have come from earned income on which I’ve paid the highest levels of tax. And then I’ve paid stamp duty bills running into hundreds of thousands of pounds. All of which is ok, and priced into my affordability calculations at the time. It’s egregious to come along after the event and now say “it’s only fair you pay £xx,000 more every year”. There’s just no basis for it, other than the simple minded “you’re rich, we’ll have your money”, totally disregarding the tax contribution made to get to that point.

Agree. Especially as someone buying a house just now.

Those sorts of taxes would be enough to make me seriously consider this country as somewhere I’d want to stay.

[David87]

If they try and tax the house in which my children live, as well as their education, we’ll be off to somewhere else that doesn’t take the fking piss.

[castex]

Don't let the door hit you, David, on your way out.

[okgo]

castex said:

Don't let the door hit you, David, on your way out.

Any experience doing any of those things or?

[castex]

okgo said:

Any experience doing any of those things or?

Or what?

[DonkeyApple]

FishAndChips said:

At least they have now pledged to use the money raised from charging VAT on private schools to pay for these 6.5k extra teachers. Can't argue with that.

That was their time ledge from the outset. To raise £2bn and to generously use £200m to hire 1 new member of staff for every 1,000 pupils, which is already trying to be done anyway so technically SFA of the money raised is going back into educating the UK's kids. It'll get binned on slacker parents, the actual root cause of the problem facing the nation's children.

[DonkeyApple]

okgo said:

GT03ROB said:

There will be working people in £1m houses, earning less than 100k & where are they going to find £20k from to pay that?

The same can be said all the way up to £3-4m plus really.

It would be mental to do that without some kind of lever to protect people that had either been there fking ages or people that just bought. I’ve just bought a house and there isn’t that amount of slack in the budget unless I want to not save for my future.

It's a voluntary tax as obviously you could just move to a a two up two down ex local authority property in Manchester and not have to pay it.

Reality won't matter. If you exempt people in £1m+ homes just on the grounds that they were £200k homes back when they bought them and their income could never actually support a purchase at today's values then one isn't doing wealth taxation correctly. Neither income nor means to pay are pertinent.

[MrBarry123]

brickwall said:

That’s why they’d set a base threshold of £1M.
So if you’re in a £1.2M it’d be (£1.2M - £1M)*(1%) = £2k/yr
It only really starts to sting at £2M above, at which point the political narrative is “we’re asking multi-millionaires to pay a few thousand extra”

I can absolutely see this happening under SKS.

[Notreallymeeither]

GT03ROB said:

There will be working people in £1m houses, earning less than 100k & where are they going to find £20k from to pay that?

And working people in £1m houses with very considerable mortgages and little equity.

[Zolvaro]

Notreallymeeither said:

And working people in £1m houses with very considerable mortgages and little equity.

Wealth taxes are based on Net wealth, not just asset value.

[Raddors]

okgo said:

Big wealthy schools which contain the most kids on bursaries and have the best facilities that the public get a use of will easily weather it

I'm not so sure as VAT is only one part of a triple threat for some of the large schools. Removal of business rates relief will hammer big charitable schools and for those still in the TPS already paying 28.6% Er contributions will have another jump next year very likely.

[okgo]

Notreallymeeither said:

And working people in £1m houses with very considerable mortgages and little equity.

Remortgage and offshore bond the equity it is

[Ziplobb]

GT03ROB said:

There will be working people in £1m houses, earning less than 100k & where are they going to find £20k from to pay that?

this
We did not decide our house was worth £1m plus. That was the estate agents and RICS. We could afford the £20k to live there but that is no holidays, no eating out, no fast car in the garage basically no nothing. We could sell it but then both kids would have to find their own place at a rent of £1200/£1300 a month and moving out of the area where they were born, educated and their lives are because they cant afford to buy their own house because of estate agents and RICS. Our house in Norfolk or the north of england is not £1m plus either so how is that fair and equal ?

[Zolvaro]

okgo said:

Remortgage and offshore bond the equity it is

Wealth taxes normally consider global wealth so it won't matter. Unless you are suggesting Tax evasion!

[DonkeyApple]

Zolvaro said:

Notreallymeeither said:

And working people in £1m houses with very considerable mortgages and little equity.

Wealth taxes are based on Net wealth, not just asset value.

Which highlights their pure genius as everyone just gears up the on the asset being taxed and moves the capital to another location.

We all know just how stupid wealth taxation tends to be over income and consumption taxes but given Labour's potential spending requirements and the inevitable need to pay uniongeld while also potentially also not being able to get civil servants to return to working in exchange for the money they've given I'm not sure where else they're going to raise the taxes from? All the remaining wealth is in pensions alongside the artificially inflated property market.

We'll just have to wait and see but they pledged to not change other taxes nor borrowing or to act unfunded so an awful lot of money needs to be lifted from the population. None of which will come from the super affluent nor the bottom end so it does seem logical that just like school fees it'll be pitched as a levy on the 'orrible royally minted but fall hard on the shoulders of the people who pay for everything already.

The pip squeezer is currently getting a new, even higher setting.