THE CHANCELLOR was wrong to row back on plans to impose a ‘mansion tax’ on expensive properties, according to our online audience.
Of the 123 polled, little more than a quarter – 28% – agreed with the move, amid concerns that asset-rich, cash-poor people could be caught by its introduction. The remaining 72% disagreed with abandoning the measure, noting its potential for tackling tax avoidance issues.
The ‘mansion tax’ – originally proposed by Vince Cable – would have seen a rate of 1% or 2% of the property’s value above a threshold of £1m to 2m, but both David Cameron and George Osborne ruled out its introduction.
In ruling out the tax at the Conservative party conference, Osborne said he was concerned the policy “will be sold to you as a mansion tax” before the election, and then afterwards, “a lot of the people in Britain are going to wake up and find their more modest homes have suddenly been reclassified as a mansion”.
Vote in Accountancy Age‘s latest poll:
HMRC has outlined a change in VAT policy to the treatment of dwellings that have been formed from either the construction of new buildings, or from the conversion of non-residential buildings
Let us hope that valuable asset protection vehicles are not made prohibitively burdensome or abolished in the desire to “simplify” IHT
The government is pressing ahead with changes to the way it taxes individuals with a foreign domicile
I will feel slightly awkward when I write to the client who is about to receive a large invoice from the PAYE expert, offering him the fee protection going forward