Chaotic Budget tax rises revealed - industry reaction - Introducer Today

Contributing sentiments towards policy:

60% : This comes as no surprise, given it has been such an effective stealth tax already.
55% : We've had to hand over an extra £89 billion in income tax this year - compared to 2021/22 - as a result.
55% : "You also pay a higher rate of capital gains tax when you cross into paying higher rate tax, and your dividend tax rate rises as you cross each income band.
54% : As a result, she is creating in England what she is calling the "High Value Council Tax Surcharge" or Mansion Tax, which means that properties worth over £2m will pay a surcharge of £2,500 and properties worth over £5m will pay a surcharge of £7,500.
53% : These will both be paid by the property owners in addition to the current level of council tax, but there will be a consultations on options for "support or deferral".
52% : And from April 2027, a 2% increase will be imposed on basic, higher and additional rates of property income tax, increasing them to 22%, 42% and 47% respectively.
52% : "However unwelcome any tax increase, the certainty which this provides will allow buyers and sellers to formulate plans which have been put on hold over recent months.
52% : Someone earning £50,000 this year will pay £8,165 more in tax over those three years as a result.
51% : "More properties will inevitably get dragged into the mansion tax net, which means the proportion of terraced houses, flats and semi-detached homes will grow over the years, particularly in the capital.
51% : "It means that every pay rise will mean more people paying more tax, and more tipping over into paying higher rates.
49% : Of particular relevance to the property industry: The Chancellor is imposing a Mansion Tax on more expensive properties because - she says - "a Band D home in Darlington or Blackpool pays just under £2,400 in Council Tax - nearly £300 more than a £10m mansion in Mayfair".
49% : Fiscal drag has hauled over 6m more people into paying income tax, and 3.36 million more into paying higher or additional rate tax.
49% : When you start paying higher rate tax, your personal savings allowance shrinks, from £1,000 for basic rate taxpayers to £500 for higher rate taxpayers, and disappears altogether for additional rate taxpayers.
47% : "However, it is likely to have a disproportionate impact on second home markets which are already dealing with an increased stamp duty surcharge and the doubling of council tax in most cases.
47% : "According to the OBR report the government has extended the freeze in the tax thresholds to 2031 - even longer than had been expected.
46% : " - Jeremy Leaf, north London estate agent and a former RICS residential chairman: "Mansion tax change seems more political than anything bearing in mind the relatively little additional revenue to be raised and the likely deferred payment date.
45% : It's not just the tax on earnings that's affected.
44% : What we would rather have seen for council tax is a complete rebanding with greater laddering to avoid cliff-edge rates and continued fiscal drag.
43% : The UK already pays the highest percentage of property taxes among OECD countries.
42% : " - Lucian Cook, Savills head of Residential Research: "After what must have been the most prolonged exercise in kite flying in the run up to a Budget, the introduction of an annual tax surcharge for properties worth over £2m, at levels somewhat lower than many will have feared, is probably the least worst outcome for owners of prime property.
41% : The tax will come into effect in 2028.
40% : " - Nick Leeming, Chairman of Jackson-Stops: "What concerns me is the greater economic consequences beyond the Chancellors tax grab, leaving £2m homeowners who are mortgaged having the potential to slip into negative equity as prices realign.
38% : " - Sarah Coles, head of personal finance, Hargreaves Lansdown - "An income tax hike was the most feared change in the Budget - worrying 16% of people, 20% of Millennials, and 25% of higher rate taxpayers, so the Budget made millions of people's worst fears a reality.
37% : The OBR says: "The costing incorporates a small negative impact as a result of the pass-through of the tax increasing rents and property tax receipts, which is more than offset by a reduction in house prices reducing other receipts.
37% : The term 'mansion tax' will increasingly feel like a misnomer.

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