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Am I essentially the most resented particular person in Britain? I assumed I’d ticked all of the bins that society likes to rib you for: I skilled in actual property, labored for an funding financial institution, then in personal fairness, then as a talk-show host (a gob on a stick), and even appeared on a actuality TV present.
I do know I’m not everybody’s cup of tea; teasing is one factor, however I’ve by no means been taxed additional for it — till now, as a second-home proprietor.
From April 1, those that personal vacation houses in one of many greater than 200 English council areas making use of new laws, will face a 100 per cent council tax levy. For me, meaning my annual invoice of £4,433.68 will double to £8,867.36.
Aww diddums. I understand how this narrative goes. When you can afford a second dwelling, absolutely paying just a few additional thousand kilos in council tax is a small worth to pay? Councils are strapped, the social care invoice has ballooned and also you’ve evidently acquired cash to burn — and, whereas we’re at it, have you ever seen how excessive home costs and rents are? Take a look at the social and financial injury attributable to your selfishness.
Positive. My home, in-built 1911, is simply what’s required to resolve the nation’s housing disaster. Good luck paying for the maintenance of a property that’s endlessly demanding extra funding. As for the audacity of wanting to flee after per week of labor? How dare I’ve such aspirations.
I purchased my seaside retreat in 2012, downsizing in London to make the numbers work. My selections imply I pay extra tax, whereas holding folks in work too. There’s the second insurance coverage coverage, with 12 per cent insurance coverage premium tax, and VAT on renovations and constructing works. All wonderful. However a recurring tax that penalises since you personal one thing, paying greater than others for a similar providers, appears unjust to me.
No matter means, doubling your council tax is numerous dosh to seek out — in my case it’s equal to filling up the Aston 43 instances. And since that cash gained’t be swilling round on the lookout for a house, it’ll imply I spend much less elsewhere, impacting these companies that would profit from the additional customized.
However it’s not simply the cash that irks — although it critically does. It’s that the coverage is simply one other measure for a authorities hell-bent on disincentivising success. There’s the added VAT to highschool charges, decreased IHT reduction for farmers; elevated nationwide insurance coverage contributions for employers, and automotive tax payable on electrical automobiles — to not point out the incomprehensible tax code, that punishes anybody incomes over £100,000 with a 60 per cent marginal charge.
It’s not as if we will blame the present authorities for the modifications to council tax. Sure, they’re enacting it, however The Levelling Up and Regeneration Act 2023 was crafted by the earlier administration, which claims to assist low taxes and wise spending. Margaret have to be spinning in her grave — or a minimum of asking for a refund on her legacy at this assault on aspiration. The one factor that above all else drives an economic system to progress is being crushed by a political class who are sometimes second owners themselves, and might reclaim the brand new levy.
Aspiration drove me to work tougher. To earn extra and sure, alongside the way in which pay extra tax. Now second-home homeowners discover themselves on the backside of a rising pile of individuals offended at rising taxes and fed up.
Few will weep for us, however taxing folks for proudly owning issues others don’t have units a precedent for small-mindedness and envy. What subsequent? A swimming pool tax, a surcharge on luxurious holidays or proudly owning a walk-in wardrobe? Maybe a tax for proudly owning too many pairs of designer socks? Or a bathroom tax for these lucky sufficient to have soft-closing rest room seats? I’d higher cease giving them concepts.
In the meantime, supporters say this tax will assist remedy the housing disaster and repair native authorities funds. When you imagine that, I’ve a bridge to promote you. Will costs deflate? Maybe on the prime finish. However the incapability of successive governments over a long time to construct sufficient houses for the rising inhabitants is what’s acquired us into this mess.
As I write this, searching on the sea from my home, I realise it’s not a second dwelling — it’s my dwelling. Covid and distant work have modified how I dwell. I’m registered to vote and with the native GP right here, devoting numerous time to the group by chairing the native sports activities membership. However after all, that each one counts for naught. I’m a second-home proprietor, I’m honest recreation.
So I’ll must discover a method to mitigate the rise. I discover that Essex County Council, the authority that takes 60 per cent of my council tax, is on the hunt for a brand new chief government at a wage of as much as £228,753, plus advantages.
On second ideas, I’ll resist. I don’t want one other title in my portfolio of societal resentment.
James Max is a broadcaster on TV and radio and a property skilled. The views expressed are private. X, Instagram & Threads @thejamesmax
