Reeves’s ‘mansion tax’ makes ‘no sense’ and could lose Treasury money, former IFS chief warns
Proposed ‘mansion tax’ makes ‘no economic sense’, expert says
- The Chancellor is reportedly planning to introduce capital gains tax on the sale of primary residences above a certain value.
- This proposed measure aims to help plug a reported £40 billion hole in the public purse.
- Under the mooted plans, higher-rate taxpayers could face a 24 per cent levy on gains, while basic rate taxpayers would pay 18 per cent, a significant departure from current tax-free sales.
- Property experts warn that such a tax, potentially starting at a £1.5 million threshold, would stall high-value housing sales and disproportionately affect older homeowners and those in London.
- Critics also suggest the change could lead to an exodus of wealthy individuals from the UK and create disincentives for homeowners to sell, disrupting the housing market.