PROPOSALS put forward by both Labour and the Liberal Democrats for a mansions tax would see Londoners contributing £1bn to the public purse annually.
The burden, according to Zoopla research, would fall almost entirely on the capital, with two thirds of the total derived from just three boroughs, City AM reports.
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.
The Liberal Democrats have already pledged to introduce the levy should they win the next election, with chief secretary to the Treasury Danny Alexander noting he expects the move to “release a wee bit of steam” from the top of the market.
Zoopla spokesman Lawrence Hall said: “Homeowners in London and the south east already pay the lion’s share of UK property taxes… implementing an additional charge based on an arbitrary threshold would only serve to further distort the market.”
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