And now comes the new "basement tax"

[AtW]

"Wealthy London homeowners planning to dig underground extensions beneath their properties will be hit by Britain's first "basement tax" in a fresh crackdown on so-called iceberg homes.

Under new rules enforced by Westminster on Friday, residents will have to pay an average of £8,000 to get planning permission for basement extensions, which are often hugely unpopular with neighbours.

The size of the fine will be decided by the council and will depend upon the scale of the project and the likely disruption it will cause.

The tax so far only applies to homes in the London borough of Westminster but if the policy is a success it is thought the basement tax could spread throughout the capital if other councils follow suit."

Source: UK's first 'basement tax' to clobber wealthy homeowners building iceberg extensions 

Yeah, £8k one off fee will show 'em

[DimPrawn]

That's £8K per month or what?

[AtW]

That's £8K per month or what?

"to get planning permission"

Just add a square inch to the plan to make it worthwhile in tax free increase in property value

[centurian]

Given the cost of these basement extensions can run into millions, then 8K is a rounding error.

[AtW]

Given the cost of these basement extensions can run into millions, then 8K is a rounding error.

Even if it was increase in annual council tax of £8k per year it would not be a deterrent, and why should it be deterred? Let 'em build underground extensions, at least in this case they are investing money rather than just buying property and sitting on it.

[NickFitz]

How low can these people sink?

[Milkyway]

So the govt calls this a tax/fine because these constructions somehow affect the neighbours, etc. Fair enough.
But the moment the person pays that 8K fine to the govt., they are OK to construct it and the neighbour's problems (or whatever reason they put this fine in the first place) due this construction, magically goes away???? I really don't understand this

[AtW]

So the govt calls this a tax/fine because these constructions somehow affect the neighbours, etc. Fair enough.

It would ONLY be fair if the neighbours were getting THAT money!

[Milkyway]

It would ONLY be fair if the neighbours were getting THAT money!

Thank you... Indeed, that is what I was coming to, as you can see my frustration in understanding as to how the govt taking the money helps the neighbours in sorting out the issues they would have had with this.

This is similar to bank fines... The fines that banks pay to govt. because they have caused inconvenience or damaged something for the customers, goes nowhere near the affected customers. It goes straight to the govt. and god knows where it goes afterwards.

I will never understand the concept behind all this, I think.

[AtW]

This is similar to bank fines... The fines that banks pay to govt. because they have caused inconvenience or damaged something for the customers, goes nowhere near the affected customers. It goes straight to the govt. and god knows where it goes afterwards.

Apart from PPI tulip.

Of course this month later will be taken from ALL customers of banks, including those sensible enough not to get PPI ...