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PricedOut Discussion
Subject: Very uneven playing field on taxes.
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slicedcake


Activist
Activist
Posts:467


09/08/2009 12:34 AM Alert 
Lots of land is used for horse businesses and pastimes.  Land that is desperately needed for housing for people.


[/quote]
http://www.tax-news.com/archive/story/Buy_A_Horse_And_Save_Tax_xxxx24422.html

[i]
[/i]Unfair tax advantages on inhertance tax, business tax allowances/dodges etc.

[i] In addition, those that base their stud farm on land that they own may also be able to claim agricultural property relief for inheritance tax (IHT) purposes, meaning that 100% of the agricultural value of the land and buildings used in connection with the stud could be IHT exempt.[/i]


It's difficult to know whether posting this will highlight a housing related problem or make it worse!   Lots of people will rightly question the fairness of this tax loophole.

Magrathea


Activist
Activist
Posts:477


31/10/2009 11:53 AM Alert 
The heart of the problem is not the inheritance situation, but that the land is not taxed and it should be because land ownership creates externalities.
slicedcake


Activist
Activist
Posts:467


07/11/2009 6:41 AM Alert 
Hello Magrathea, it's good to read your forum posts. 
slicedcake


Activist
Activist
Posts:467


07/11/2009 6:47 AM Alert 
I aggree with you. It seems to be unfair and uneconomic that the tax take is from excessively high income tax, VAT etc. The sum of income tax and national insurance adds up to 30% of "income" for the typical person, 40% for those with a higher income..   too high.
Magrathea


Activist
Activist
Posts:477


11/11/2009 12:33 PM Alert 
Posted By slicedcake on 07/11/2009 6:41 AM
Hello Magrathea, it's good to read your forum posts. 

Hello sliced - Good to see you again too. This forum has a special place in my affections. It is a real pity, the activity on it is so low

Bedsitter


First Timer
First Timer
Posts:1


11/11/2009 2:12 PM Alert 
Speaking of tax, can anyone explain why landlords are allowed to claim 100% mortgage interest relief against their rental profits ?
james armstrong


Concerned Citizen
Concerned Citizen
Posts:30


14/11/2009 5:40 AM Alert 
on land tax, htere are as always pros and cons. on variation i propose ios to tax land, in land, not in cash. There is provision in the town planning and compulsory purchase act to cpo land- and, here is the edge, at below notional value. i.e below the increase in value which land attracts on the day it receives planning permission for development. land is the key issue in housing supply and prices and rents. It is monopolised against all the tenets of markets, economic analysis ,welfare, equity and fairness but is only given lip service as in Office of 'Fair' Trading. I think this is worth pursuing and contesting with OFT etc. It is radical and will engage the most entrenched and powerful land, political and constitutional interests. It is also just and I think theway forward, so inevitable.
james armstrong


Concerned Citizen
Concerned Citizen
Posts:30


14/11/2009 5:40 AM Alert 
on land tax, htere are as always pros and cons. on variation i propose ios to tax land, in land, not in cash. There is provision in the town planning and compulsory purchase act to cpo land- and, here is the edge, at below notional value. i.e below the increase in value which land attracts on the day it receives planning permission for development. land is the key issue in housing supply and prices and rents. It is monopolised against all the tenets of markets, economic analysis ,welfare, equity and fairness but is only given lip service as in Office of 'Fair' Trading. I think this is worth pursuing and contesting with OFT etc. It is radical and will engage the most entrenched and powerful land, political and constitutional interests. It is also just and I think theway forward, so inevitable.
slicedcake


Activist
Activist
Posts:467


14/11/2009 7:02 AM Alert 
Is there still a "monopolies commision"?  Do they have a blind spot where land is concerned?  
Magrathea..  What "externalities" did you have in mind?
plainservice


Activist
Activist
Posts:139


12/01/2010 5:14 PM Alert 

I surprised a debate about land tax is going. It seems to me that people simply want to tarmac this country end to end. What will it gain? It seems that people want mansion style homes with a swimming pool and sauna. If you want that go to America, Canada or Australia they have plenty of land. 

No one speaks of what happens if we keep building on farmland?. Has anyone ever though about impact of Climate Change on food production?

How about the future with dwindling oil and gas supplies, there will be more pressure on land for biofuels (i.e. grow crops to burn for fuel) and wind farms. Also reduction of land means we don't have enought land for tree to counteract CO2.

And thinking that TAX is a solution is nuts. What do you think the government will do with the money?. My local council spends thousands of pounds on hiring celebrities for their xmas party and they have awarded themselves a huge pay rise. And tax to pay for MPs duck pond?.

I do think that TAX should be fair, but I don't think that it should hurt entreprenuers. For instance, I was watching TV earlier today and saw a guy sell his pharmacetucal business and bugger off overseas to save on capital gains tax and inheritance tax. Why is n't the tax situation favourable to keep entrepreneurs in this country creating wealth. If you own a business, you also own premises i.e. land. . So any land related tax impacts businesses.

It sounds to me that most people don't have a clue about tax, it is a real pain in the a**. Certainly, if you are on PAYE, you are not touched by the complexity of our tax system. I have heard the tax books would reach a height of 5ft.

In my view, there have been significant failures in housing and finance policies and the government should have made every effort to stop house prices going up. It would have been better to tackle the root cause, rather then dealing with the symtoms of the current economic crisis and also with prices too high that people cannot get on the housing ladder.

Magrathea


Activist
Activist
Posts:477


13/01/2010 5:17 PM Alert 
Plainservice, entreprenuership and production already pays the rent on land. Making productive activity pay the government for land rather than private landowners (who are not in reality providing anything) will not increase their costs. In fact, if taxes are taken from land rent the taxes that fall on production can be eliminated or reduced. What in effect is happening is that an entirely passive and parasitic economic role (the purely passive rent collecting dimension of landownership) is cut out and replaced by government who then do not have to levy damaging taxes on production for funding
Magrathea


Activist
Activist
Posts:477


13/01/2010 5:21 PM Alert 
Sliced, the externality of land ownership is the restriction its ownership presents to others. Think of it this way - if people buy land and as a result the price rises, this presents an increrasing problem / cost / restriction to (especially) those who do not own land.

slicedcake


Activist
Activist
Posts:467


26/01/2010 12:49 PM Alert 
OK, I aggree.  It's a term that I rarely use.     

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