Property news: Council tax should be scrapped and replaced with THIS, experts say

Council tax is a local taxation system which is used in England, Scotland and Wales.

» Top New Products

The Secret Password To His Heart
cs_image_0

Discover  The  Secret  That  Gives  You  His  Password  To  Unlock  His  Heart    and    Make  Him  Love  You.               

$39.95
Registry Cleaner Download
cs_image_1

Windows  registry  cleaner  helps  to  scan  your  PC,  safely  clean  the  errors    and    invalid  entries.           

$34.95
FootyBetter's Complete Tips Package
cs_image_2

A  Culmination  Of  All  Our  Football  Tipping  Services  Rolled  Into  One.                                                                 

$27.00
Win More Tennis Matches
cs_image_3

Strategy  And  Mental  Tennis  Ebooks  To  Make  You  A  Smarter  Player.                                                                         

$19.00
Love spells for any occasion
cs_image_4

The  ultimate  collection  of  hundreds  of  the  world's  best  and  most  effective  love  spells.                         

$25.00
Create Your Own Destiny
cs_image_5

Create  Your  Own  Destiny  without  Performing  Rituals    and    Worshiping  Entities                                               

$97.00
Aquaponics 4 you
cs_image_6

Learn  how  to  build  your  own  homemade  aquaponic  system                                                                                             

$37.00
Great Cookbooks At Discount Prices
cs_image_7

Get  Delicious  300  Mouthwatering  Chicken  Recipes,  Sure  to  please  your  taste  buds                                         

$12.95
How to Write an Ebook
cs_image_8

How  To  Write  Your  Own  Ebook(r)  In  7  Days                                                                                                                       

$29.00
Surf fishing guide
cs_image_9

The  ultimate  guide  to  get  started  surf  fishing  right  away  from  any  beach.                                                     

$19.95
Earn Affiliate Commission Now
cs_image_10

Here  Is  The  Opportunity  To  Clone  The  Entire  Affiliate  Marketing  System  Today                                               

$47.00
Learn how to freestyle rap here
cs_image_11

Learn  how  to  flow  your  own  songs  with  freestyle  rapping  here.                                                                             

$97.00

The bill sees anyone who lives in a domestic property, and does not qualify for an exemption, paying a fee to their local government authority in order to fund local series such as rubbish collection, road repairs, and transport.

The fees are based on the property value, with each property being assigned one of eight bands (from A to H), and each band having a fixed amount.

Now, experts have insisted that the levy should be cut, and a new fee being put in place.

The council tax band a dwelling fits into is based on its assumed capital value, according to property prices in 1991.

Since then, any new builds have been assigned a nominal 1991 value.

Each local council will then determine the council tax for that year, by setting Band D, and applying a ratio to different bands.

In England, the bands have not been re-set since 1991.

However, The Institute for Public Policy Research (IPPR) have now suggested ditching the current council tax set-up, in favour of a new property tax.

The think tank put forward a new levy, which is proportionate to the current market price of the property.

According to the IPPR, the current band system has lead to houses which have gained significant value in recent years being “under-taxed”.

In the IPPR Commission’s final report on economic justice, titled Prosperity and Justice: A Plan for the New Economy, it read: “Council tax is still calculated on the estimated value of homes in 1991, leaving those whose homes have gained most in value since then significantly under-taxed.”

The report went on to look at wealth inequality, as it detailed the growth in property values since 1991, the decline in final salary pensions, and the likelihood of millennial families owning a home by the age of 30.

It also addressed the increased probability of those in the UK renting privately, and how, on average, a quarter of millennial’ income is spent on housing.

The IPPR said a property tax rate of 0.5 per cent would mean the owner of an average-priced home in the UK, valued at £248,611, would see them pay an annual bill of £1,243.

This figure would generate the current amount raised through council tax, however, a higher rate would be necessary in order to sustain the same revenue generated by stamp duty paid by home buyers.

Carys Roberts, senior economist at the IPPR, said: “Council tax is a regressive tax as it falls disproportionately on those with lower incomes and wealth.

“It’s also outdated, as it’s based on valuations that have not been updated since 1992.

“A new property tax would be far more progressive, and would effectively capture increases in house prices in a way the current system does not.”

Earlier this year, Britons prepared for a council tax rise, which was the highest bill increase for 14 years, accountant group CIPFA said.

Let’s block ads! (Why?)

Post Author: martin

Avatar
Martin is an enthusiastic programmer, a webdeveloper and a young entrepreneur. He is intereted into computers for a long time. In the age of 10 he has programmed his first website and since then he has been working on web technologies until now. He is the Founder and Editor-in-Chief of BriefNews.eu and PCHealthBoost.info Online Magazines. His colleagues appreciate him as a passionate workhorse, a fan of new technologies, an eternal optimist and a dreamer, but especially the soul of the team for whom he can do anything in the world.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.