- Joined
- May 22, 2012
Rachel Thieves at it Again....
Yes, taxes in the UK are reaching eye-watering levels, with certain vehicles getting taxed at over £5k for the first year and even EVs now paying £195 for year 1, when they were free before.
Now the target seems to be (again) those who have worked hard and relieved themselves of their greatest financial burden, the mortgage.
It has been revealed that in her Autumn Statement in October 2025 a homeowners' annual tax is to be introduced. This is basically a levy paid annually to the local authority in the form of a secondary council tax based on the market value of the property. It is planned to be 0.25% per annum on homes valued up to £500,000 and 0.5% on those greater.
So that means if you own a 300k home outright you will pay £750 per annum on top of your council tax bill. If your home is worth £1m the bill will be a whopping £5000. Provision is also made to prevent avoidance for example remortgaging to buy non-property related goods.
It appears the purpose of this annual Property Owned Outright Payment is to bail out local authorities who are increasingly reliant on emergency money from the treasury having run up huge debts and therefore being unable to meet legal requirements for road maintenance and school building upkeep amongst other things.
When questioned about this proposal, a treasury spokesman stated:
"It's really a free hit for the nation to assist the financing of local expenditure. When you consider that on average property values increase year-on-year at an average of 4%, a mere fraction of that paid annually results in no net loss for the homeowner while bolstering local resources without the need for central government to borrow more money. A good comparison is when you earn 4% interest on a savings account and pay tax on any gain in excess of £1000, at your basic rate. People accept this so why should it be unacceptable to pay tax on a 4% rise in your home's value? The Property Owned Outright Payment is an innovative answer to the shortfall in local funding."
Yes, taxes in the UK are reaching eye-watering levels, with certain vehicles getting taxed at over £5k for the first year and even EVs now paying £195 for year 1, when they were free before.
Now the target seems to be (again) those who have worked hard and relieved themselves of their greatest financial burden, the mortgage.
It has been revealed that in her Autumn Statement in October 2025 a homeowners' annual tax is to be introduced. This is basically a levy paid annually to the local authority in the form of a secondary council tax based on the market value of the property. It is planned to be 0.25% per annum on homes valued up to £500,000 and 0.5% on those greater.
So that means if you own a 300k home outright you will pay £750 per annum on top of your council tax bill. If your home is worth £1m the bill will be a whopping £5000. Provision is also made to prevent avoidance for example remortgaging to buy non-property related goods.
It appears the purpose of this annual Property Owned Outright Payment is to bail out local authorities who are increasingly reliant on emergency money from the treasury having run up huge debts and therefore being unable to meet legal requirements for road maintenance and school building upkeep amongst other things.
When questioned about this proposal, a treasury spokesman stated:
"It's really a free hit for the nation to assist the financing of local expenditure. When you consider that on average property values increase year-on-year at an average of 4%, a mere fraction of that paid annually results in no net loss for the homeowner while bolstering local resources without the need for central government to borrow more money. A good comparison is when you earn 4% interest on a savings account and pay tax on any gain in excess of £1000, at your basic rate. People accept this so why should it be unacceptable to pay tax on a 4% rise in your home's value? The Property Owned Outright Payment is an innovative answer to the shortfall in local funding."
