SIR – Heather Wetzel claims that a new land value tax (LVT) would be “fairer”, as well as “more efficient and economically effective”, than existing property taxes (Letters, July 13).
Ms Wetzel makes only a passing reference to land prices, ignoring the impact that LVT would have on property and land values, leaving the primary residence of many homeowners worth less. Some would suffer negative equity; others would see their investment and retirement plans destroyed.
Those advocating higher property taxes appear to believe that it is fair and politically wise to devalue the most valuable asset that many people either own, are paying an expensive loan to purchase, or aspire to buy in the future.
Philip Duly
Haslemere, Surrey
SIR – Heather Wetzel suggests that demand for property distorts the economy. This is a misunderstanding of the role that price plays. The distortion comes from factors such as planning controls.
Moreover, have proponents of LVT considered the impact that it could have on social housing in city centres, or will it become another hidden subsidy from taxpayers?
Douglas Smith
Edinburgh
SIR – I understand that Andy Burnham may lower the level at which the “mansion tax” on properties is payable to £1.5 m (“Burnham’s plan for £38 bn tax raid”, report, July 13).
Let us say my wife and I own a house in Didsbury valued at £950,000, a weekend cottage in the Lake District valued at £600,000 and my deceased parents-in-laws’ flat with a value £290,000, which we rent out.
Our total property value is £1,840,000, yet we will pay no mansion tax. On the other hand, our (theoretical) daughter and her husband, with two children and a small three-bedroom house in south London (value: £1,550,000), will have to pay. On what level can this be fair?
Alastair Prain
London SW1
SIR – Presumably if the mansion tax comes to fruition, all home repairs and maintenance necessary to maintain the value of the property will be tax-deductible.
Dr Robert Seaman
Henlow, Bedfordshire
SIR – We are spending most of the summer in political and economic limbo, waiting for an unelected prime minister to finalise his arrangements for taxing individuals and businesses into oblivion. This comes on top of the catastrophically damaging legacy of Sir Keir Starmer and Rachel Reeves.
Have we really allowed ourselves to be rendered so impotent as to let this come about without challenge?
David Crigman KC
Birmingham
