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Lib Dems back plans for new annual property tax on rich

The Liberal Democrats are backing plans for a new annual property tax that would cost homeowners with high-value homes thousands of pounds a year.

According to a report in the Telegraph, some Lib Dems are pushing for the annual charge to be levied at up to 1.5 per cent of a property’s value. Others believe the tax should be based on a site’s rental value, according to the report.

The report states Nick Clegg and business secretary Vince Cable are supportive of the idea. The tax is being promoted by a Lib Dem pressure group called Action for Land Taxation and Economic Reform, of which Clegg and Cable are vice presidents.

A Lib Dems source told the Telegraph: “A land value tax is ultimately where many in our party would like to go – particularly as it as a tax on wealth, not income. Will it be Government policy? We will have to wait and see – we are in a Coalition. But there is a good chance it will become party policy. It is the natural successor to a Mansion Tax.”

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  • William Davison Chair of ALTER 11th September 2012 at 2:08 pm

    Land Tax is a tax shift NOT an additional tax. Land Tax will not raise more revenue, preventing cuts in spending or reduce the deficit. The Tax is to replace existing bad taxes, so we would look to abolish Council Tax, Business Rates, Stamp Duty land tax and reduce income tax.

    Re “Look at what they did in Hong Kong” we are doing. Hong Kong raises between 30 and 40% of its revenue from land and property taxes and only 15% from income tax. We want to replicate the Hong Kong income tax where 60% of workers don’t pay income tax at all. The Lib Dems £10,000 Income Tax allowance, is just a first step, next is take to everyone out of tax that is on minimum wage, about £12,000.

    ALTER – Action for Land Taxation and Economic Reform
    http://libdemsalter.org.uk

  • Julian 3rd September 2012 at 4:40 pm

    And if you are asset rich but cash poor does this tax roll up and get taken from equity on death. What exam will I need to pass for that???

  • dave 3rd September 2012 at 4:14 pm

    Unbelievable! It’s a good job the LibDems will never be elected to run the country. The problem is, they might become coalition partners with Labour after the next election – and then help us all!

  • Arron Bardoe 3rd September 2012 at 3:28 pm

    It is scary they are looking at putting a LibDem near the Treasury again. Vince Clarke is not the economic guru believe.

    The Left do not know how to look after money.

  • neil336 3rd September 2012 at 3:11 pm

    They should stop at looking at ways to raise more tax, and start introducing tax cuts,tax cuts are the key to stimulate the economy and get things moving again. Look at what they did in Hong Kong

  • neil336 3rd September 2012 at 3:11 pm

    They should stop at looking at ways to raise more tax, and start introducing tax cuts,tax cuts are the key to stimulate the economy and get things moving again. Look at what they did in Hong Kong