'Mansion Tax' could hit 300,000 high-value homes

'Mansion Tax' could hit 300,000 high-value homes

Briefly

"More than 300,000 properties could fall within the scope of a new 'Mansion Tax' being prepared for next month's budget, according to leading housing market analysts. The Labour Government are understood to be developing plans to tax homes based on house prices, particularly those valued above £1.5 million or £2 million. While no final announcement has been made, economists and industry researchers say the available evidence points towards an incoming 'Mansion Tax' forming part of Chancellor Rachel Reeves's Autumn Budget."

"The Institute for Fiscal Studies (IFS) has said that additional property taxes could raise several billion pounds annually, helping to close what it estimates to be a £20 billion gap in the public finances. It added that taxing wealth tied up in property would align with the government's goal of focusing new charges on those most able to pay. Tom Bill, head of UK residential research at Knight Frank, said: "The government has been examining ways to make property taxation fairer and more progressive. A tax on homes above £1.5 million or £2 million would deliver a stable annual income stream and is more predictable than transaction-based taxes such as stamp duty.""

"The Treasury is understood to be weighing two possible structures. One would introduce an annual 1% levy on the portion of a home's value above £2 million, meaning a £2.5 million property would incur a £5,000 yearly charge."