The press has mooted the idea of Capital Gains Tax on ones PPR above \u00a35million. Usually in these circumstances there is no \u2018smoke without fire\u2019. Were this \u2018fool hardy\u2019 idea to be incorporated in the first Budget of the new Tory administration, were they to be elected, this would be the first time that any government has had the temerity to trounce on the sacred ground of the middle to upper classes. It unquestionably would be another \u2018bash\u2019 against London residents, which, lets face it, is hardly a Tory heartland, since it is has been historically left leaning.
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With the residential markets, in the upper brackets, being in a parlous state already, after the ravages of the Stamp Duty hikes, this additional fiscal imposition would \u2018sound the death knell\u2019 of the London markets in London. Homeowners would not move, now for two reasons, not just one. Why on earth would you crystallise a tax gain if you didn\u2019t have to? You would just \u2018stay put\u2019.<\/p>\n
If Capital Gains Tax were imposed, at the higher level, it would be reasonable to assume that the threshold could then be lowered, at some later stage in the economic cycle, once the Chancellor felt that it was a sufficient money earner for the Treasury ad politically acceptable. If this were the case then the lower to middle income groups would certainly be threatened.<\/p>\n
I suppose the present Tory administration feels that they are in an unassailable position and if former Conservative party supporters were to become disaffected by these proposals, perhaps they would like to chose the alternative \u2018Laurel & Hardy\u2019 team of \u2018Worsel Gummage\u2019 and John McDonnell with their socialist mantras drawn straight from Marx\u2019s Das Kapital. All this is reminiscent of a bygone era in the 70s, that we all thought we had left behind long ago.<\/p>\n
The likes of Michael Foot, Arthur Scargill etc., and other socialist \u2018Nudniks\u2019 were banished by Thatcher in the 80s, with her \u2018grass root\u2019 reforms and perhaps this is why the UK is now the fifth largest economy in the world, with a vibrant growth and an unprecedented low unemployment rate.<\/p>\n
Turnover of residential property sales above \u00a35million is down by 70% and this once vibrant market is \u2018grinding to a halt\u2019 with countless other negative ramifications on other related sectors.<\/p>\n
Imposing such a tax would be the \u2018last straw\u2019 and the prevailing \u2018recession\u2019 in this sector, would soon morph into depression. \u2018Tightening the tourniquet\u2019 around the \u2018golden gooses neck\u2019 at a critical time for the post Brexit era, does not produce any more \u2018golden eggs\u2019.<\/p>\n
Even the new fresh faced, \u2018wet behind the ears\u2019, President Macron, is trying to undo the damage that his socialistic predecessor caused, by trying to reverse the effect of the penal taxes on the 20,000 French wealth creators, who have now set up home in Kensington, in order to lure them back to their Gaelic heartland.<\/p>\n
Phil, if you are still the Chancellor after the post Election reshuffle, take heed of this clear warning!<\/p>\n","protected":false},"excerpt":{"rendered":"
The press has mooted the idea of Capital Gains Tax on ones PPR above \u00a35million. Usually in these circumstances there is no \u2018smoke without fire\u2019. Were this \u2018fool hardy\u2019 idea to be incorporated in the first Budget of the new … Continue reading