Off Topic The Politics Thread

[Goldhawk-Road]

It will be ‘interesting’ to learn how that is actually going to work.

Obviously the sales price, minus associated selling costs, can be fairly easily and accurately calculated.

However, the ‘cost’ of the property for CGT purposes will be far more difficult to quantify and determine.

Owners may have lived there for decades, extended, altered, installed new fittings etc. Records (paperwork, paperwork etc) may not exist etc. to calculate the taxable profit.

I wonder if rather than apply CGT, they would implement a Sales Tax, say 5% of the net proceeds.

Either way, it won’t be popular

Good points, Taff. I suppose in theory the calculation for CGT on primary residence will be the same as for a second home now. But you're right it will be more involved on a primary. What are ordinary maintenance expenses and thus not deductible, and what are improvements? Labour won't be content with 5%. They'll put CGT to 40% on all capital gains. Potential seller will delay until the tax is reduced or abolished on primary homes.

 

[Goldhawk-Road]

It’s a scare story Taff, don’t be suckered by this black ops Tory propaganda. There won’t be any tax on sales of primary home, as this would be incredibly regressive even for Starmer’s Labour, it’s not a tax on wealth, and there is already a purchase tax (Stamp Duty).

Given that when Starmer was asked on Panorama whether there would be CGT on sole residences, he refused to answer, and independent economists agree that government departments are facing cuts of between £10 bn - £20bn, that can only be funded by tax or borrowing, on what is your confidence based?

 

[Taffvalerowdy]

It’s a scare story Taff, don’t be suckered by this black ops Tory propaganda. There won’t be any tax on sales of primary home, as this would be incredibly regressive even for Starmer’s Labour, it’s not a tax on wealth, and there is already a purchase tax (Stamp Duty).

Second homes attract 28% CGT already for higher tax rate payers (18% for basic rate). These rates might (indeed should) go up to at least match income tax rates.

I suspect (and hope!) that you are correct re the taxation treatment of Principal Private Residences - it would be hugely unpopular to say the least.

That - or a Sales Tax - could even place some borrowers in a state of negative equity (actual or technical).

The housing market is slowing down as it is - something like this would only serve to worsen the situation.

I suspect that you are correct that CGT will increase - possibly/probably in line with Income Tax rates: meaning earned income and unearned income are treated equally.

 

[sb_73]

Given that when Starmer was asked on Panorama whether there would be CGT on sole residences, he refused to answer, and independent economists agree that government departments are facing cuts of between £10 bn - £20bn, that can only be funded by tax or borrowing, on what is your confidence based?

It’s a regressive tax and would be much more unpopular than even increases in income tax. Anyway, as we all know all of Starmer’s plans can be funded by already announced revenue plans and the magical economic growth that he will conjure up.

 

[Goldhawk-Road]

It’s a regressive tax and would be much more unpopular than even increases in income tax. Anyway, as we all know all of Starmer’s plans can be funded by already announced revenue plans and the magical economic growth that he will conjure up.

So your vehemently expressed confidence is based on hot air...

 

[sb_73]

So your vehemently expressed confidence is based on hot air...

Hard to convey sarcasm in print, to some people anyway.

Might be increases, or new, CGT in other areas though. Share trading for example.

 

[Taffvalerowdy]

I suspect that we can all expect large increases in Council Tax - Labour in Wales has already started the process

 

[Quite Possibly Raving]

So your vehemently expressed confidence is based on hot air...

You honestly think any govt would be willing to put capital gains on main residences?! That would be complete suicide. Much less controversial than what May suggested on social care and look what happened in 2017.

 

[Taffvalerowdy]

You honestly think any govt would be willing to put capital gains on main residences?! That would be complete suicide. Much less controversial than what May suggested on social care and look what happened in 2017.

Personally, I don’t think anyone would do so as it would not only be politically’fatal’ to do so, but as I wrote earlier, it would be too complicated and difficult to assess.

However, I ‘fear’ that a Government with a landslide majority could well feel emboldened enough to levy a Sales Tax on the net proceeds: starting off with a small percentage until people just ‘accept’ it.

Hopefully I’m wrong.

It was interesting earlier this afternoon in the gym at Llandarcy - within in the Neath and Swansea East constituency, a strong Labour heartland - that of the group of guys discussing the upcoming election myself included, not one wanted to vote for either Labour or the Tories.

The feeling was that people didn’t want to vote for Labour because they were concerned what they will do in power, yet no one wanted the Tories to remain in office.

None of the above was the preferred choice

 

[Goldhawk-Road]

You honestly think any govt would be willing to put capital gains on main residences?! That would be complete suicide. Much less controversial than what May suggested on social care and look what happened in 2017.

There's a difference. May put her social changes plan into her manifesto. Starmer realises the less he says in the manifesto, the better. But he has declared that he doesn't mind making enemies, and when asked to rule out CGT on primary residences, he would not do so. He'll be desperate for money to fund his priorities and he can't borrow. Yes, I absolutely think he'd raid those nasty profits that homeowners can make selling their homes.

 

[Quite Possibly Raving]

There's a difference. May put her social changes plan into her manifesto. Starmer realises the less he says in the manifesto, the better. But he has declared that he doesn't mind making enemies, and when asked to rule out CGT on primary residences, he would not do so. He'll be desperate for money to fund his priorities and he can't borrow. Yes, I absolutely think he'd raid those nasty profits that homeowners can make on selling their homes.

Well, each to their own in that case.

 

[sb_73]

Lib Dem’s the only party to try to contact me directly so far. I think all candidates get one free mail shot to send their leaflet to all potential voters. The leaflet says absolutely nothing but at least they have made an effort. To be fair to the Tories they only discovered their candidate’s name at the end of last week, haven’t had time to find out what he thinks.

 

[sb_73]

Loads of countries meet to discuss peace for Ukraine but refuse to talk to Russia. They also ‘reject’ a nuclear threat to Ukraine, which is a novel form of defence. Not sure how effective it would be in practice though.

It’s a war of attrition with no end at sight. At some stage they have to talk. The sooner the better.

Zelensky’s official term as President expired last month, but the Ukrainian constitution says no elections during wartime. So as long as the war continues he stays in place. Hmmm.

 

[Uber_Hoop]

https://x.com/timmyvoe/status/1801952581914161489?s=46&t=IY6M0zI1h1T3HNaXabWIhQ

 

[Stroller]

Wes Streeting on the Kuennsberg show this morning gave the game away a little. When challenged with the fact that the Nuffield Trust says that Labour's manifesto plans don't go far enough towards fixing the NHS and social care, he said 'A manifesto is not a plan for five years of government'.

It's a starting point.

 

[sb_73]

Wes Streeting on the Kuennsberg show this morning gave the game away a little. When challenged with the fact that the Nuffield Trust says that Labour's manifesto plans don't go far enough towards fixing the NHS and social care, he said 'A manifesto is not a plan for five years of government'.

It's a starting point.

Why bother with a manifesto then? Just say we don’t want to scare the markets so we won’t tell you what you are voting for.

 

[bobmid]

Have the Tories just given up on this election? Had stuff through the post from every party except them. It all goes straight in the bin mind so maybe they are progressing with the net zero stuff.

 

[Star of David Bardsley]

Have the Tories just given up on this election? Had stuff through the post from every party except them. It all goes straight in the bin mind so maybe they are progressing with the net zero stuff.

I’ve had a Labour bloke come to the door just to count voters and seen the local candidate for Hamas blaring music out of a van in the wrong constituency but nothing else. Very little signage for anyone in Brighton or Hove. Even the Greens.

 

[Quite Possibly Raving]

Have the Tories just given up on this election? Had stuff through the post from every party except them. It all goes straight in the bin mind so maybe they are progressing with the net zero stuff.

I've not had a single piece of literature from anyone yet. Safe Labour seat but would have still expected something by now.

 

[kiwiqpr]

https://x.com/timmyvoe/status/1801952581914161489?s=46&t=IY6M0zI1h1T3HNaXabWIhQ

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