Taylor Scott International News
Mansion tax plans could affect 775,000 homes over 25 years An assessment of the proposed Mansion Tax by Knight Frank suggests that its revenue targets will not be met at the current proposal for a £2m threshold and that in order to raise the targeted revenue, the value threshold for the tax would need to be reduced from £2m to either £1.5m or £1.25m. The tax would be levied largely on London and the South East of England where 86% of all £2m+ properties are located. Liam Bailey, Head of Research at Knight Frank, said that assuming historic rates of property price growth, the number of properties affected by the tax will increase from 55,000 homes – currently worth £2m – to 775,500 over the course of the next 25 years. “Our calculations point to the real threat of the mansion tax threshold being lowered substantially in order to meet the revenue targets of the political parties,” he said. “Even if the threshold is not lowered, it seems a fair assumption – given that it has remained at £2m since 2009 – that it would not be raised in line with future house price inflation thereby substantially increasing the number of properties affected by the tax. “Over the past 10 years house prices have risen by 69%. Assuming a similar rate of growth in the future, all houses worth more than £1.2m today would be paying a mansion tax 10 years from now, meaning that the number of homes covered would nearly triple from 55,000 to 157,300.” Taylor Scott International
Taylor Scott International, Taylor Scott
