Ed Balls has said that Labour’s mansion tax plans would be banded, starting at properties worth more than £2m and rising with higher rates at £5m and £10m and properties worth over £20m subject to a significantly greater contribution. Mr Balls added that thresholds would rise in line with average rises in house prices to limit the number sucked into the new property tax. Labour would also ensure there was a ‘relief scheme’ so that asset-rich but cash-poor householders weren’t forced to sell their homes to pay the new tax, he said. However, critics of the plan said that levying very high taxes on the top end of the property market could leave the Treasury with less cash in falling values and stamp duty returns.
Source: The Times (24/06/2014)