Sir, Philip Collins’s thought-provoking article (Opinion, Apr 1) rightly highlights the Asquithian concept of taxation — avoid imposts on work and effort, target idle wealth.
There is, however, no need for a mansion tax. All that is needed is a long-overdue reform of the Council Tax system (last updated 1991). The present banding, as he points out, aligns fairly well with properties now worth up to £1 million falling within the original Band H. A complete revaluation of all properties, coupled with an indefinite extension of banding with no value limit, would generate a much fairer impost and impose a tax on foreign-domiciled property owners enjoying near tax exemption in the UK.
My council tax amounts to around 0.27 per cent of property value. Many householders with houses of less value suffer much higher percentage levels. A new national levy of, say, 0.3 per cent of value on all properties would probably generate a similar sum but would have a much fairer spread across taxpayers. Applying progressive tax principles, a higher rate of say 1 per cent for all properties over £1 million value could be applied and thus achieve the objectives of both Philip Collins and Vince Cable.
Michael Pointer Brentwood, Essex Sir, Of course it was crass of Vince Cable to have used the term “mansion tax” but the principle is sound and the practical concerns articulated by Alice Thomson (Mar 30) can be overcome.
Such a tax years ago would have done much to stem rampant inflation of prices at the top end of the market. There would be no need for expensive valuations as tax could be levied on the basis of the most recent purchase price of each property, updated annually by an appropriate index.
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It would be important for the tax to apply to all owners regardless of domicile. There could be discounts where a property is the main home and has been lived in by the owner for, say, ten years.
Ron Jacobs Farnham, Surrey