Mansion tax threat greatest in London
THOSE living in properties worth £2m or more face the threat of an annual mansion tax.
The Liberal Democrats voted overwhelmingly in favour of the policy at their annual conference this week and hope to persuade their coalition partners to put it into practice.
Leader Nick Clegg says the party is targeting the super rich, but there are fears that the tax could hit family homes belonging to the asset rich but cash poor.
The Lib Dems want to levy a charge of 1 per cent on the amount of excess value of properties valued at more than £2m. The tax, proposed by Lib Dem peer Lord Oakeshott, would target one in 200 properties, heavily concentrated in the richest parts of London.