Stay up to date with notifications from The IndependentNotifications can be managed in browser preferences.AllNewsSportCultureLifestyleAndy Burnham is reportedly considering a significant overhaul of property taxation, advocating for a land value tax (LVT) to replace both stamp duty and council tax. This concept, which the Mayor of Greater Manchester first championed in 2010, aims to make homeownership more accessible for those with limited financial backing and to reduce tax evasion.While not an immediate priority, the move to tax assets rather than transactions appears to be on Mr Burnham’s agenda, according to Tom Bill, head of UK residential research at Knight Frank. Mr Burnham supports a proposal from campaign group Fairer Share, which suggests a levy equivalent to 0.48 per cent of a property’s value.Mr Bill praised the proposal’s simplicity and the logic of scrapping stamp duty, which he noted hinders social and economic mobility. However, he questioned whether the primary goal should be maximising tax revenue rather than pursuing overtly political aims. He warned that the plan would likely be unpopular, with landlords, developers, overseas buyers, and second-home owners facing increased costs.He added that similar stamp duty approaches since 2014 have curbed activity in high-value areas, suggesting that "politicising the housing market feels like an approach that’s been tried and failed." Mr Bill also raised concerns that the process could lead to higher rents due to fewer available properties, alongside significant implementation costs.Tim Stovold, head of tax at accountancy firm Moore Kingston Smith, told the Financial Times that "a tax of this type will reduce property values when introduced."In fullWhat Andy Burnham as prime minister might mean for your mortgage, taxes and moneyThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in
What are Andy Burnham’s plans for property tax – and how will it affect me?
Stay up to date with notifications from The IndependentNotifications can be managed in browser preferences.AllNewsSportCultureLifestyleAndy Burnham is reportedly considering a significant overhaul of property taxation, advocating for a land value tax (LVT) to replace both stamp duty and council tax. This concept, which the Mayor of Greater Manchester first championed in 2010, aims to make homeownership more accessible for those with limited financial backing and to reduce tax evasion.While not an immediate priority, the move to tax assets rather than transactions appears to be on Mr Burnham’s agenda, according to Tom Bill, head of UK residential research at Knight Frank. Mr Burnham supports a proposal from campaign group Fairer Share, which suggests a levy equivalent to 0.48 per cent of a property’s value.Mr Bill praised the proposal’s simplicity and the logic of scrapping stamp duty, which he noted hinders social and economic mobility. However, he questioned whether the primary goal should be maximising tax revenue rather than pursuing overtly political aims. He warned that the plan would likely be unpopular, with landlords, developers, overseas buyers, and second-home owners facing increased costs.He added that similar stamp duty approaches since 2014 have curbed activity in high-value areas, suggesting that "politicising the housing market feels like an approach that’s been tried and failed." Mr Bill also raised concerns that the process could lead to higher rents due to fewer available properties, alongside significant implementation costs.Tim Stovold, head of tax at accountancy firm Moore Kingston Smith, told the Financial Times that "a tax of this type will reduce property values when introduced."In fullWhat Andy Burnham as prime minister might mean for your mortgage, taxes and moneyThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in
