Why is it that so few chancellors ever consider the effect of their decisions on taxation on housing?
The obvious answers are political ones: housing is near the bottom of the list of priorities; no chancellor can afford to alienate the homeowning majority; and any changes to the tax system inevitably create losers as well as winners.
As George Osborne puts the finishing touches to the Budget, speculation continues about several measures that could have a huge impact: a long-overdue clampdown on stamp duty avoidance (Osborne has already committed to this – see my blog for Inside Housing here); extra council tax bands (a distinct possibility); and a mansion tax (advocated by the Lib Dems but supposedly ruled out for now by David Cameron). Yet all of the ideas are about raising revenue for tax cuts elsewhere. There is no suggestion of the more general reform of property taxation that is so badly needed.
So George Osborne will come down ‘like a ton of bricks’ on people who avoid stamp duty by buying homes through offshore companies. What took so long?
The chancellor confirmed in TV interviews over the weekend that the loophole beloved of celebrities, rock stars and the global super-rich will be closed in the Budget on Wednesday.
Read the rest of this post on Inside Edge, my blog for Inside Housing.
Anyone who has followed the debates about housing benefit cuts and the Welfare Reform Bill will probably have been thinking the same as me during the debates this week about the mansion tax and child benefit.
Surely we heard exactly the same arguments about ‘fairness’ and ‘family’ in all the debates over the last year about welfare reform and housing benefit cuts?