George Osborne mulls over higher sales taxes for multimillion pound London homes
Higher taxes on the table after last year's stamp duty rise didn't cut enthusiasm
Higher taxes on the sale of multimillion pound homes in London – many of which are bought by wealthy foreign investors – are being considered by George Osborne ahead of next month’s Autumn Statement.
The Chancellor is examining the capital’s buoyant property market – where prices continue to soar far ahead of the rest of the country – as a potential source of extra revenue.
Last year’s rise to seven per cent in stamp rate duties on the sale of houses worth more than £2m has made no difference to the booming trade in luxury properties.
Coalition ministers believe the sector could withstand the imposition of higher taxes – a move advocated by the Liberal Democrats.
One possibility is a further rise in stamp duty rates on the most expensive houses, it is understood.
Another is introducing capital gains tax on foreign buyers of the British properties, who are currently exempt from the tax.
Treasury sources stressed reports of extra tax demands on the purchasers of high-end property was speculation and no decisions had been taken by Mr Osborne.
He faces the challenge of finding more than £1bn and the move on multimillion pound properties is attractive to ministers as it would be politically uncontentious.
Mr Osborne is looking to cover the cost of two conference policy announcements by the Coalition partners at their annual conferences – the Tory promise of tax breaks for married couples and the Liberal Democrats’ commitment to free school meals for all infants school pupils. Each policy has been costed at around £600m.
- 1 Scottish independence: Ireland since 1919 is a lesson for Scotland in what a Yes vote means
- 2 Thailand deaths: Pair's bloodied bodies found naked on Koh Tao beach
- 3 Lego breaks out of the toy box and heads for the gallery
- 4 Julian Assange and Edward Snowden join piracy mogul Kim Dotcom’s political campaign in New Zealand
- 5 Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Thailand deaths: Pair's bloodied bodies found naked on Koh Tao beach
Jihadi John': MI5 may have identified Isis militant who killed David Haines but options limited
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Scottish independence: Police will be on high alert on Friday whatever the result
David Haines beheading: David Cameron says Britain will hunt down Isis 'monsters' shown in video murdering aid worker
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Scottish independence: Yes campaign feels the heat as Alex Salmond's NHS claims come under furious attack
£23m Birmingham cycle scheme is attacked by Tory councillor for not catering to the elderly
Salmond accused of laughing off national debt with ‘what are they going to do: invade?’ joke
£40000 - £45000 Per Annum + benefits: Clearwater People Solutions Ltd: Project...
£350 - £425 Per Day: Clearwater People Solutions Ltd: Project Manager - 3 mont...
£18000 Per Annum: Clearwater People Solutions Ltd: ***EXCELLENT OPPORTUNITY FO...
£85 - £130 per day: Randstad Education Chester: Year 3/4 Teacher - Daily Suppl...