New property tax
Discussion
What does this actually mean?..
Properties will be assessed based on 2026 valuations provided by the government's Valuations Office Agency.
I'm just wondering how they are going to calculate the valuation on my house to know whether they have to levy me with this property tax announced in the budget?
Properties will be assessed based on 2026 valuations provided by the government's Valuations Office Agency.
I'm just wondering how they are going to calculate the valuation on my house to know whether they have to levy me with this property tax announced in the budget?
I suspect there are some very stressed people in the VOA right about now trying to work out the answer to your question.
I'd imagine combine the 1991 list working down from the top, sweep up any new properties on the same roads along the way, compare that list with sale prices from Land Registry then probably ask Local Authorities to fill in any gaps from the council tax records. That lot in some order anyway, then maybe something more hands-on for the borderline ones. There's an existing appeal mechanism if you think they've got it wrong so I'd expect that to get a bit of a workout.
I'd imagine combine the 1991 list working down from the top, sweep up any new properties on the same roads along the way, compare that list with sale prices from Land Registry then probably ask Local Authorities to fill in any gaps from the council tax records. That lot in some order anyway, then maybe something more hands-on for the borderline ones. There's an existing appeal mechanism if you think they've got it wrong so I'd expect that to get a bit of a workout.
E63eeeeee... said:
There's an existing appeal mechanism if you think they've got it wrong so I'd expect that to get a bit of a workout.
That mechanism will definitely get more than "a bit" of a workout.HMG tend to forget that people with top end properties are rarely the village idiot and/or are prone to taking a kicking without putting up a fight.
I suspect they will have made a number of surveyors/lawyers very happy indeed.
ETA: just had a quick look and apparently VOA officers can only inspect with the consent of the property owner. That will make valuing more interesting properties quite onerous.
ETA: here's the actual detail: https://www.gov.uk/government/publications/high-va...
High Value Council Tax Surcharge charging structure.
Threshold (£m) Rate (£)
£2.0-2.5................£2,500
£2.5-3.5................£3,500
£3.5-5.0................£5,000
£5+.......................£7,500
Edited by LooneyTunes on Wednesday 26th November 17:52
LooneyTunes said:
E63eeeeee... said:
There's an existing appeal mechanism if you think they've got it wrong so I'd expect that to get a bit of a workout.
That mechanism will definitely get more than "a bit" of a workout.HMG tend to forget that people with top end properties are rarely the village idiot and/or are prone to taking a kicking without putting up a fight.
I suspect they will have made a number of surveyors/lawyers very happy indeed.
ETA: just had a quick look and apparently VOA officers can only inspect with the consent of the property owner. That will make valuing more interesting properties quite onerous.
ETA: here's the actual detail: https://www.gov.uk/government/publications/high-va...
High Value Council Tax Surcharge charging structure.
Threshold (£m) Rate (£)
£2.0-2.5................£2,500
£2.5-3.5................£3,500
£3.5-5.0................£5,000
£5+.......................£7,500
Edited by LooneyTunes on Wednesday 26th November 17:52
If it is just piggybacked on council tax it'll probably end up being up to Local Authorities how hard they go after the borderline ones that weren't £2m last time they sold but probably are now, and for most LAs outside London I can't imagine that's going to be many.
E63eeeeee... said:
I suspect there will be fewer marginal ones than you might think. If you start with anything that's sold for over £2m in the last 10 years for example, you'd certainly look like the village idiot arguing that obviously it was worth £2m to you but actually it's really worth more like 1.5...
True, but at that level you get weird stuff. I was offered some where there were businesses on site that would need to be (perhaps irrationally) wound up if you wanted it back as a family residence, off market stuff where the open market level wasn’t properly tested, etc.
It’s probably not going to be relevant but we a chunk of what was reported as the purchase price for ours was a payment for the former owners to move out quickly.
You then also have the non-trivial issue of the impact the new bands would have on values. The “extras” are on top of already hefty CT bills and running costs. Will definitely dissuade borderline purchasers.
LooneyTunes said:
ETA: just had a quick look and apparently VOA officers can only inspect with the consent of the property owner. That will make valuing more interesting properties quite onerous.
ETA: here's the actual detail: https://www.gov.uk/government/publications/high-va...
High Value Council Tax Surcharge charging structure.
Threshold (£m) Rate (£)
£2.0-2.5................£2,500
£2.5-3.5................£3,500
£3.5-5.0................£5,000
£5+.......................£7,500
How on earth are they going to make this work in practice?ETA: here's the actual detail: https://www.gov.uk/government/publications/high-va...
High Value Council Tax Surcharge charging structure.
Threshold (£m) Rate (£)
£2.0-2.5................£2,500
£2.5-3.5................£3,500
£3.5-5.0................£5,000
£5+.......................£7,500
Edited by LooneyTunes on Wednesday 26th November 17:52
The spread between my most recent valuation (last year) and insurer rebuild estimate spans three of those bands, and the last thing to sell nearby (2021) is nothing like mine so effectively zero comparables. I genuinely have no idea what they might do, it's almost funny tbh.
NowWatchThisDrive said:
How on earth are they going to make this work in practice?
The spread between my most recent valuation (last year) and insurer rebuild estimate spans three of those bands, and the last thing to sell nearby (2021) is nothing like mine so effectively zero comparables. I genuinely have no idea what they might do, it's almost funny tbh.
No idea. There are so many issues with it. I think they may assume that owners will just roll over if given a valuation that doesn’t seem borderline. That may or may not happen…The spread between my most recent valuation (last year) and insurer rebuild estimate spans three of those bands, and the last thing to sell nearby (2021) is nothing like mine so effectively zero comparables. I genuinely have no idea what they might do, it's almost funny tbh.
The VOA is being merged into HMRC, and is currently a total sh*tshow based on my interactions with it. I've been waiting over a year for case to be resolved and I'm owed £3k+ in overcharged council tax as a result. Even though a decision in my favour was issued months ago, I've yet to get my money back.
...which leads me to think this will be a total disaster if the VOA has anything to do with it.
...which leads me to think this will be a total disaster if the VOA has anything to do with it.
The VoA is a complete joke.
Regarding CT bands, all they have to do is use a housing inflation index + transaction price to reverse-calculate what prices were in 1991.
Instead they lark-around making people prove what their house was worth, without access to the database they have (because sales completions before 1995 aren't digitalised).
It's a scandal both for the house owner and the taxpayers funding the circus.
Regarding CT bands, all they have to do is use a housing inflation index + transaction price to reverse-calculate what prices were in 1991.
Instead they lark-around making people prove what their house was worth, without access to the database they have (because sales completions before 1995 aren't digitalised).
It's a scandal both for the house owner and the taxpayers funding the circus.
Sport_Turismo_GTS said:
Puzzles said:
absolutely, standard play book, in ten years with fiscal drag the number of houses hit will balloon but the threshold won't increase as thats a tax break for the rich
WTF are you talking about?Even if they say it will increase with inflation I’m doubtful that it will.
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