Talks continue over Labour and Liberal Democrat plans to introduce a ‘mansion tax’ on properties worth £2 million and above.
If implemented, the tax would raise £2 billion from residents in expensive properties, most of which are located in London and the South.
The so-called ‘mansion tax’ would be charged at 1% on properties worth £2 million, rising to £35,000 and above on the highest-value properties.
The Conservatives argue that the proposed tax would bring in less than anticipated unless the wealthiest home owners were charged at extremely high rates. They claim that the Labour and Lib Dem Parties have overestimated the number of qualifying UK properties, consequently overestimating the economic benefit such a tax would bring to the economy. The Tories put the number closer to 55,000.
However, Labour and the Lib Dems defend their 70,000 – 75,000 estimate and insist that the mansion tax would bring in the full £2 billion; money they say they would use to reinstate the 10p bottom rate of tax for people on lower incomes.
As the debate rages on between the different Parties, the mansion tax is proving to be a battle ground for the hearts and minds of the voters in the 2015 general election.
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