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Families would be better off £435 a year if Rishi Sunak reformed the property tax, Tory MP says

HOUSEHOLDS would be better off on average £435 a year if Ministers introduced an improved property tax rate.

Prime Minister Rishi Sunak are urged today to separate existing taxes and introduce a new home tax – which campaigners say will help solve the cost of living crisis.

Rishi Sunak has been urged to reform property tax

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Rishi Sunak has been urged to reform property taxCredit: Reuters

Calls for the new Property Tax rate would lead to 76% of households becoming well-off – with each Red Wall home being more than £1,000 a year better off.

The move backed by the Fairer Share team will end the obligation to stamp and council tax and put an end to lower-value homes that pay more than expensive homes.

They say families living in a £100,000 home in Easington, Durham constituency, pay 1.4% of the home’s value in town hall tax each year.

The rate is around 52 times higher than the 0.03% rate that the £6.2million house in Westminster would have to pay.

Estimates suggest that the policy will raise £4.5 billion from foreign landlords, empty house and second house.

Overseas ownership in England and Wales and tripled to 250,000 over the past decade, which often drives down local households.

Former Tory minister Lord Willetts has previously backed the move to put more homes on the market.

The move could free up 600,000 homes for those looking to buy in the UK.

Tory MP John Stevenson and vice-chair of the Northern Research Group, said last night: “If we want to fix the housing market so that more young people can have a home of their own, then ministers. should seriously consider the taxation of high figures by foreign investors in the UK.

“The best way to achieve this may be through a Proportional Property Tax, which frees up homes all over the country.”

Andrew Dixon, founder of Faire Share, said: “The government is under increasing pressure to tackle the housing crisis and ensure foreign homeowners pay fair property taxes.

“Introducing a Prorated Property Tax will mean lower bills for the majority of UK households while the surcharge on these purchases will result in hundreds of thousands of homes being billed. marketed to UK residents.”

A Government spokesman said: “The annual house price tax will mean soaring bills for many struggling working families and pensioners who have already saved and improved their homes. I don’t plan on making these changes.

“We are providing around £12 billion worth of support this financial year and beyond to help families cover living costs.

“We are cutting General Credit downsize to ensure paid work, freeze taxes and fuel to reduce costs, and provide targeted support to help households pay their energy bills. “

Rishi Sunak says ‘we are dealing with a huge amount of uncertainty’ with PM still not ruling out further restrictions

https://www.thesun.co.uk/money/17439229/families-to-be-435-better-off-each-year/ Families would be better off £435 a year if Rishi Sunak reformed the property tax, Tory MP says

JACLYN DIAZ

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