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Thread: Should HMRC offset homeowners building insurance ?

  1. #1

    Should HMRC offset homeowners building insurance ?

    A report last week in the Telegraph informs us that in the next five years HMRC expects property related taxes to increase from 7 Billion to 18 Billion.
    The main taxes are Stamp Duty, inheritance tax on property, capital gains tax, and vat on property transactions including legal work.
    I believe that increasingly, homeowners are simply caretakers of an asset for future government revenue. If you own a 1M house, who really is the biggest beneficiary when you die ? There will be 400K IHT, possible CGT, and stamp duty of 50K ad infinitum for the next 500 years. Multiply that by at least ten or twenty for the lifetime of the house and we can see that the government, not you or I, actually own the property.
    Now imagine that the house burns down, there is no insurance, and it is not rebuilt. In the short term the homeowner is the biggest loser, however in the medium and long term it will always be the government.
    Surely if homeowners are protecting future state revenue, it is now only just that building insurance be added to personal tax allowances, up to a maximum of say 250 p a.

  2. #2
    I suspect that you are on a hiding to nothing with this idea, however justifiable it may sound to you!

    You should also bear in mind that a very large part of the value of a property is the land on which it sits, and which is rarely/never destroyed, especially by being 'burnt to the ground'!!

  3. #3
    On this basis HMRC should pay for everything such as :
    1. Bringing up children, as they are future tax payers
    2. University tuition as this will generally allow students to get better jobs and pay more tax
    They should also provide incentives for buying anything which carries VAT - they did so for the car scrappage scheme which accelerated tax receipts
    and so on !! :-)

  4. #4
    I think that there is little chance that this would ever come about. I do however think that insurance premium paid into health insurance schemes should be tax deductible as those choosing private care save the NHS money!

  5. #5
    As jon points out above, if you think that, where would it stop? Tax deductible health insurance because it saves the NHS money? By the same rationale, why not tax deductible public school fees on the grounds that it saves the state the cost of educating our children? I can see how popular that would be!

    "Should HMRC offset homeowners building insurance ?"

  6. #6
    No takers then for my proposal....yet I still maintain it is iniquitous that ordinary hard working families are acting as guarantors for Trillions in future state revenues.
    It seems perfectly acceptable for BTL landlords and commercial property owners to tax deduct building insurance, on the basis they have vouchsafed a business asset. Many then have the audacity to employ highly regarded accountants to pay no tax whatsoever.
    Looks like I'm a lone voice in the wilderness, but I may not be in five years time.

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