5 Sep

Mansion tax would raise far less than forecast

Mansion tax would raise far less than forecast

The much maligned mansion tax would raise far less for the public purse in the UK than previously anticipated, a new report has concluded.

Ministers first floated the idea of a taxation on properties costing more than £2 million as a way of bringing in more money from the super rich.

However, despite Labour and the LIb Dems anticipating that it would bring in £1.7 billion to £2 billion for the economy, property experts have rejected this notion, saying it would struggle to reach £1.3 billion in revenue - and that's before exemption is even taken into account.

The report published by Knight Frank said: "The main issues include the estimate of the number of £2 million plus properties and their average value. If either turn out to be too low, then obviously tax take would rise."

Other criticisms of the tax have included the fact that it would mostly affect those in the south of the country, with some 86.4 per cent of homes over the threshold in London and the south-east. Meanwhile, the most wealthy property investors who have a range of reasonably expensive homes would not be taxed on any of these that did not reach the threshold, even if they owned millions of pounds worth of property overall.ADNFCR-1222-ID-801634282-ADNFCR

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