The Rest Is Money 187. Is It Time To Impose Capital Taxes On Our Homes?
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Jul 6, 2025 This discussion features Tom Tugendhat, Conservative MP and former Minister for Security, who draws on his diverse background to explore radical solutions for the UK's housing market. He challenges the notion that homeownership should remain untouchable while asking whether homes should be taxed as capital gains. The conversation dives into how to better allocate wealth for economic growth, reflects on the rising distrust among younger generations towards traditional financial structures, and argues for tax reforms aimed at tackling economic inequalities.
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Housing Dominates UK Wealth Growth
- Over 70% of British people's wealth increase in 30 years comes from housing, unlike the US where it's mostly investments.
- This creates economic distortion favoring property over business growth and innovation.
Align Capital Gains Tax Policies
- Align tax treatment of capital gains on housing and equities with a large lifetime exemption to avoid distorting investments.
- This encourages diverse investments in property or businesses without penalizing either.
Young Generations' Changing Mindset
- Younger generations lack property obsession due to lack of access and different pension expectations.
- They focus on creativity and talent but lack capital to realize potential, hindering economic growth.
