According to reports in The Times and Guardian the Tory-aligned Bow Group is proposing a 1% annual levy on the value of all homes to replace four existing taxes – council tax, inheritance tax, capital gains tax on house sales and the BBC’s licence fee.
The Bow Group’s Mark Wadsworth’s ‘progressive‘ proposal would see the first £70,000 of a house’s value go untaxed. Thereafter the 1% annual levy would kick in. The average homeowner in the north would pay £509. This is based on the £129,000 price tag for the average northern home. With average house prices in London at £307,000, however, the average London homeowner would pay nearly five times as much – £2,370pa.
11.45am update: MARK WADSWORTH HAS NOW POSTED ON YOURPLATFORM – DEVELOPING HIS ARGUMENTS AND RESPONDING TO THE COMMENTS BELOW.