Perhaps instead of “mansion tax” in the UK, reforming Council tax

The majority of deputies of the Parliament of great Britain believe that instead announced a “mansion tax”, which is going to enter for expensive real estate, it would be more appropriate to revise the annual local municipal tax on real estate – “сouncil tax”.

Many believe, “council tax”, a municipal tax that is paid by property owners to clean up the area, funding local schools and other needs of municipalities, has long been outdated and requires change and revaluation.

For the introduction of a “mansion tax” is the labour party which can come to power through elections in 2015. The “mansion tax”, which was initiated by the labour party began in 2012, is for the party one of the slogans in the election campaign.

In the opinion of the majority of deputies of the current Parliament, the order of payment of municipal tax, which is now obsolete and is calculated according to the real estate prices that was in 1991. In 24 years, inflation in the housing market in the UK reached a value of 160% to 400% depending on the type of property and its location.

The essence of legislative initiative that the revaluation of residential property throughout the country in accordance with the new prices will lead to increased revenues in municipal budgets municipal tax and lead to a more equitable distribution of the tax burden in contrast to the “mansion tax”, which will be concentrated only in London and can greatly affect the investment attractiveness of the capital of the United Kingdom, and accordingly, have a negative impact on the entire construction industry, which only began to gain momentum after the financial crisis.

Changes in the tax system, revaluation of the housing stock will be easier to implement as the regulatory framework already established in the Local Government Act 2003.

The idea to raise the tax burden on residential property owners through Council tax has already received wide support from various political movements, especially the labour party.

Obviously, the “mansion tax” – it is rather a political trick, used by labour as a tool for political speculations in order to attract as many poor people using their class hatred of the rich. According to preliminary surveys, the “mansion tax” received a rather low support of Parliament and the reform of Council tax is much more likely to be adopted in the new year.

® Alice Morgan. 13.01.2015,

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