Jackson-Stops reacts to Government’s proposed Mansion Tax

Earlier this month, the property industry was struck with the news of the Treasury’s plans to potentially implement a mansion tax on higher-priced homes, with sources claiming that the measure is being considered as a way of helping pay for large scale infrastructure improvements, primarily in the north of England.

These plans could be put into practice through a straight levy, similar to that proposed by former Labour leader Ed Miliband in February 2013. This policy saw Miliband propose a tax on homes worth more than £2 million and was seen as contributing to Labour’s defeat at the 2015 General Election.

The director of our Midhurst branch, Nick Ferrier, shares his insight on the news and how this would impact the property market:

“It’s disappointing to learn of another tax that will most likely have an adverse impact on property sales and values across the UK, akin to George Osborne’s Stamp Duty Land Tax adjustments. Surely tax incentives to power economic growth are preferable?

A mansion tax will undoubtedly prove problematic in its implementation, especially with value thresholds. With punitive stamp duty costs also still having a negative impact on the high-end property market in particular, this mansion tax is unlikely to be greeted with open arms. Greater Stamp Duty Land Tax reliefs for first time buyers, new homes and for families moving for economic reasons would be more welcome.

It is a pity that the government continually overlook recalibrating Council Tax Bands in the UK. They could be more accurately adjusted and would further build resources for councils at a local level who are crying out for better schools and hospitals. It’s a shame that government also cannot re-implement tax reliefs like the VAT exemption on Listed buildings repairs as this would help build a UK skill base in artisan crafts and help curate our built heritage.”

If you have any questions on how the proposed Mansion Tax may impact you and your property, do contact your local Jackson-Stops branch for advice.