Commenting on Nick Clegg’s call for a 1% levy on properties worth more than £2m, Mark Littlewood, Director General at the Institute of Economic Affairs, said:
“This is deeply unfair. The UK already faces some of the highest property taxes in the western world when stamp duty, council and inheritance taxes are taken into account. A mansion tax would act as a double tax, whereby people pay tax on their incomes and are then taxed again on the houses that they bought with that income.
“Such a levy would also disproportionately penalise those who bought houses many years ago in areas where property prices have risen rapidly. Assets do not always equate to incomes. This tax would adversely affect cash-poor pensioners whose main asset is their home. It could force these people to sell their family homes due to inflated tax bills.”
“Whilst the Deputy Prime Minister is right to consider an overhaul of property taxation, he should not act in an ad hoc, politically motivated manner. Creating new taxes is not the fairest solution.”
Notes to editors:
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