Value tax

Letter: Sunak documents underscore case for property value tax

I’m sure pensioner Richard Caring (“Ivy owner told to take down mansion windows”, Report, May 28) will be grateful for Rishi Sunak’s £500 help with his house’s heating bill mansion in Kensington. Will he qualify for more than a £400 family discount? As a billionaire, I imagine he owns more than one house.

The tenant of a studio apartment in Weymouth, on the other hand, can get relief of just £400, but their council tax bill is then £1,277.16 lower than Caring’s.

It may seem strange to foreigners that in Britain those who do not own property pay property tax. In fact, our only annual property tax is levied on corporate-owned homes.

Council tax is, like its unpopular predecessor the “poll tax”, a charge imposed on residents for services provided by local authorities. As there have been no reassessments in England and Scotland since its introduction in 1993, any improvement in services affecting a small locality will not result in an increase in the municipal tax bill. But it will increase local housing prices and rents.

Commercial properties subject to commercial tariffs are reassessed every five years, taking into account the extension to seven years, so local improvements will eventually result in higher “taxable values” and higher bills for occupants – usually tenants. tenants – whose landlords will also raise rents if the market supports it.

It is time for the property value tax to replace the council tax, business taxes and all property taxes in order to remedy the dysfunction of the property market.

It can even help Caring businesses.

Carole Wilcox
Secretary, Labor Land Campaign
Christchurch, Dorset, United Kingdom