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12

Figure 4: Additional council tax revenue generated from a 100% council tax premium on properties in

England unoccupied for over six months, £mns

Source: VOA, Empty homes organization, Cebr analysis

As the reform produces its desired impact of encouraging more owners of empty homes to sell, rent, or

inhabit the properties additional proceeds resulting from the measure will decline over time. However,

the increase in the number of transactions resulting from the reform will generate GDP boosting activity

(e.g. renovations, furniture purchases, hiring movers) and in turn tax receipts (e.g. VAT from furniture

purchases, stamp duty from the housing sales). As such, the exchequer will benefit in other ways over

time.

A criticism of the proposed Mansion Tax is the unfair burden it would place on London and the South

East. An earlier Cebr report found that of the 96,592 total UK homes that would be subject to the tax in

2016 95% are in London and the South East. In contrast, as is shown i

n Figure 5,

the additional council

tax revenue from empty homes would be drawn from all English regions more fairly, with no single

region accounting for more than 21% of the receipts.

150

170

190

210

230

250

270

290

310

330

2015-16

2016-17

2017-18

2018-19

2019-20

£ million

© Centre for Economics and Business Research for the FairHomeTax Campaign Feb 2015 commissioned by Howard Cox