Is Mansion Tax the right way to go?

The Director of Plus Accounting, Peter Hedgethorne, gives his view on the proposed Mansion Tax:

More details are coming out about another proposed new tax – Mansion Tax, a special levy aimed at those with properties valued at £2m or more and now hijacked by Labour from the Lib Dems (who thought it up a few years’ ago, but haven’t been allowed to introduce it by their “partners”).

These properties have long been a target of politicians representing as they do a symbol of excess which the majority of voters are pleased to see being attacked. Like all these taxes on property (stamp duty, non-residents tax, etc.) it would distort the market and cause problems for asset-rich, cash poor people who have seen the value of their homes soar during the last few years.

Admittedly such people are not going to receive much sympathy from the majority of the population, but I think that the promise that the proceeds of the tax will be used to “save” the NHS gives further evidence that this is yet another political stunt to try and grab the headlines using apparently simple targets and outcomes without proper consideration being given to the wider ramifications.

Peter can be contacted on peterh@plusaccounting.co.uk.

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