Panic over mansion tax
SUGGESTIONS that the Government may introduce a mansion tax on homes worth more than £2m have met with opposition.
Nigel Lewis, analyst at Primelocation.com says: “If the coalition think taxing house sale transactions over £2m will raise the same or more than the 50p rate of tax, then they may be sorely disappointed.
“Some 1,500 £2m+ homes were sold over the past year in the UK, a turnover of £3bn, and even if the Government were to raise stamp duty to say 20 per cent, this would only bring in revenue of £600m. When taxes are raised, so is people’s desire to avoid them. It would be much easier to avoid a mansion tax – by not moving.”