Council Tax 3 - As a Mansion Tax...?

Council Tax Unfair:  Council tax is already unfair to those in the lower bands or in Band H with a house worth upto say, £2 million or so.When the so-called "mansion tax" was first mooted I was confused because it sounded like "council tax" without the need for a full revaluation - I assumed that an annual lump sum on would be paid on top of whatever was to be paid with the council tax, ie by those with a house worth £1 or £2 million or more.  

Of course those with houses in the lower part of Band H would have to be sorted out. The real issue is whether we really want fairness in local taxation or not. 

The low Band H owners or occupiers can be sorted out quite easily but do we want to do so????

Policy Statement:  I reckoned mansion tax would be a weak attempt at improving the progressive nature of council tax at the highest band. However, without seeing detailed policy statement on the mechanics of mansion tax I reserve comment. 

Revaluation:  To introduce mansion tax, I understand, it has been suggested that a revaluation would be needed. Really, perhaps it could be done a different way...? 

Thus,  the Valuation Office Agency (VOA) need not revalue all dwellings but allow self-assessment by those with houses or flats in Band H (or Band I in Wales).  (Self assessment is already used extensively in national taxation, eg in inheritance tax (IHT).)

Thus, at a certain date owners and/or occupiers of dwellings in Band H select an open market value  for their property in accord with the statutory definition. That is figure is recorded in the "valuation lists" ie one of several bands, ie in  "Bands for Top Values".

New Statute: A new statute would be needed to give effect to all this - including:

• several extra Bands of ascending band widths;
• a set of council tax (mansion tax) charging rates which are progressive and increasingly proportional to Band A
• An VAO challenge system to counter mistakes of valuation, ie self assessments of capital values;
• if the property is subsequently sold at a higher figure, that figure will be used to correlate, eg allowing for inflation, the "correctness" of the self assessment.

No doubt other factors could be built in, eg help in cases of hardship:   but the intention is to increase fairness in the local taxation system.