Labour to hit £3m homes with £10k mansion tax

Labour to hit £3m homes with £10k mansion tax

Labour mansion tax plans could include substantial rise for homes over £3m

THOSE OWNING PROPERTIES worth more than £3m will be hit with tax bills starting from £10,000 under a Labour government, according to research by the Institute for Fiscal Studies.

Under the party’s mansion tax plans, homes worth between £2m and £3m would attract around £3,000 in liabilities, but properties worth above £3m will take a far greater hit in order to make up the £1.2bn Labour intends to raise for its NHS policy, City AM reports.

Shadow chancellor Ed Balls (pictured) added those earning below £42,000 but live in high-value homes would be able to defer payment until the property changes hands. Overseas investors, however, would receive with rather more substantial bills, he confirmed.

The party is yet to announce further mansion tax bands, but a sizeable step up is expected above £3m in order to reach the £1.2bn earmarked, according to IFS economist James Browne.

According to research conducted by property website Zoopla in April, Londoner would account for the bulk of receipts, with two-thirds coming from just three boroughs. More than a third (36%) would be sourced in Kensington & Chelsea, which boasts 18,600 properties worth more than £2m.

The boroughs of Camden, Kensington & Chelsea and Westminster would account for 67.2% of the total yield.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

Professional Services Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine

Accounting Firms Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021

Making Tax Digital Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource