It almost seems as though the politicians had an acceptable idea but suddenly realised what they are saying. The effect on them personally would be unpalatable and they have suddenly decided to backtrack by 'rubbishing' their own idea

Well chaps we have a good idea about raising more revenue - but oops.. we are going to be in the firing line. Unfortunately we have already gone live with the message so now we need to discredit it to get ourselves off the hook

What on earth is the flaw in removing the cap on domestic rates and charging everyone irrespective of location or property the same fixed annual percent on the value of their house? The value of their house would be determined by the last recorded purchase price on Land Registry; which means there can be no argument about value

There are many benefits from such an approach:

  • Asset rich/cash poor people who have had their house for many years would only be charged on the original purchase price of the property 10-20 years ago
  • Equitable - everyone would be treated in the same manner and pay the same proportion of their property value. No free-ride for high value properties
  • Simple to collect with no challenges to valuations - after all you bought it at the price recorded in Land Registry
  • Easy to change the rate percent universally
  • With some 'Tax Avoidance' schemes (or IHT wheezes) the only tangible asset is the persons residence and to collect tax (rates) in this manner each year would be one way of mitigating the eventual avoidance

Of course the downside is that those with expensive properties would suffer an additional burden but surely that is recognised one as of the attributes of purchasing this type of property

There we have it! - the only hurdle to charging the same percent all round for rates is the will of the politicians; after all none of us would want them to be out of pocket

Tags: | Categories: UK Government

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