Chancellor rules out expanding mansion tax to £1.5m homes

Summarised from City AM's report · Updated 11 Oct, 14:13 · Archive

John Healey has ruled out widening the mansion tax to cover homes worth £1.5m.

John Healey has ruled out widening Labour's mansion tax to cover homes worth £1.5m. The Chancellor had been considering lowering the threshold from £2m as the Treasury sought extra revenue to fund cost of living support. Former chancellor Rachel Reeves announced the tax raid on homes worth more than £2m last year.

The planned levy will not come into force until 2028. It will charge owners of homes worth between £2m and £2.5m an annual sum of £2,500, rising to £7,500 for homes worth £5m or more. Expanding the threshold to £1.5m could have tripled the number of suburban London homes paying the tax, according to analysis. Estate agents have warned that the measure is already distorting the housing market.

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• Healey rules out expanding mansion tax to £1.5m homesJohn Healey has ruled out widening Labour’s so-called mansion tax to cover homes worth £1.5m, following warnings that the tax change would hammer middle-class homeowners in the capital. The Chancellor had been considering widening its council tax surcharge to cover homes valued at £1.5m or more, as the Treasury seeks extra revenue to fund cost [...]City AM · 11 Oct, 13:57

In this story: John Healey · Rachel Reeves · Labour · London

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