The Labour government is expected to impose new property taxes in the upcoming Budget on 26 November. Rachel from Accounts is expected to fund Labour’s spiralling spending and debt bills by substantially increasing the taxes paid by those who live in Hampstead & Highgate.
Labour is considering a massive tax hike on Hampstead & Highgate homeowners by abolishing the longstanding exemption from Capital Gains Tax on your home.
Labour wants to target homes in Hampstead & Highgate valued above £1.5 million. Currently, the average terrace house in Hampstead & Highgate is valued at around £1.6 million* (*source: Rightmove.com). Those on average incomes could be required to pay a tax bill of £180,000** when they sell their home.
New House Values Tax: Additionally, Labour is also rumoured to be considering a new House Value Tax (HVT). Rachel from Accounts has yet to suggest a rate, but the Institute for Fiscal Studies has recommended between 0.5% and 1%. Even at 0.5%, Camden residents could see their Council Tax replaced by an annual HVT bill that is 300% higher than the current Council Tax.
Does this Government really not understand that governments don’t generate wealth, “wealth is generated by free enterprise”? Higher taxes reduce the incentive to work, invest, or take entrepreneurial risk.
Deputy Chairman (Political) Hampstead & Highgate Conservative Association
Conservative Candidate for Kilburn
Note: ** Example based on an average house property sold, where the seller originally bought the property for £600,000.
