This is Ritchie’s latest idea about how the State really owns everything. That you only actually gain property rights if you’ve paid the correct tax on it.
It’s piffle, of course, but the aim is always to work out why he’s spouting piffle.
So, imagine that you own the most expensive house in Downham Market. You fail to pay the tax due. Perhaps the Land Registry fee, maybe council tax. Some tax that applies to that property. Does HMRC then confiscate the property? No, they don’t actually.
They might, possibly, pursue you so far that you end up having to sell the house. Or push you into bankruptcy for not paying your tax bill so that the administrator sells your house to pay the tax bill.
Let’s say the bill is £1,000 and the house sells for £200,000.
What happens to the £199,000?
Well, actually, it goes to you. Minus the costs of the whole process presumably. But the balance after you’ve paid that tax debt is indeed still your property. And the courts, HMRC, the government, everyone, is very clear indeed upon this point. Even if you are being dunned for the tax due your property is still your property: that is, the system expressly insists that property rights are independent of your tax status.
You can indeed be forced to sell “property” in order to pay a tax bill. But you will never have your right to that property confiscated for non-payment of tax. Therefore property rights do not depend upon having paid tax.