Lib Dem tax targets million-pound homeowners

Liberal Democrat shadow chancellor Vince Cable today outlined plans to target
high net worth individuals with a 0.5% annual levy on homes valued at more than
£1m. The proposed tax would rake in £1bn, which would go towards taking the four
million people earning less than £10,000 out of taxation. However, the party
acknowledged that it would need to find a further £15bn to finance any such

The 0.5% rate would apply only to the surplus value of a property beyond £1m,
meaning an annual levy of £2,500 on a home worth £1.5m. Nick Clegg suggested the
move would go some way towards rebalancing “one of the most unfair tax systems

The move is likely to be seen as a bold attempt by leader Nick Clegg to set
out spending plans which offer a significant difference to those of Labour or
the Conservatives in the run up to the election.

Vince Cable suggested on Sunday that the Tories would raise VAT to 22.5% or
even 25% if they were elected, saying “No-one does political cynicism better
than the Tories. They pose as tough guys cutting spending sooner and deeper than
anyone else. But we have just exposed them as committed to a massive £53bn of
extra spending – more than the total defence budget”

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