Landlords with high value properties in a portfolio may be caught by what looks like an expansion of the mansion tax.
The Tomes reports that Labour may extend its Mansion Tax to properties worth over £1.5m from the current £2m.
£2m is the current threshold at which owners will from 2028 pay the High Value Council Tax Surcharge or HVCTS – commonly known as the Mansion Tax.
The tax will be charged at £2,500 annually for homes in England valued at £2m or more, with higher charges applying above £2.5m, £3.5m and £5m.
There are 134,000 homes in England estimated to be valued at or above £2m.
But The Times says the government is actively considering lowering the price threshold to £1.5m.
The paper estimates this would mean 271,000 homes would be hit with the tax.
Two government sources have told The Times that a “live discussion” is taking place on how to include the change in the Budget to be delivered by Chancellor John Healey on October 28.
The new Chancellor must find some £10 billion to balance the books in the Budget. It is believed that this proposal could generate £800m a year.
A government spokesperson tells The Times: “As has always been the case, decisions on tax are a matter for the Chancellor to set out at fiscal events, rather than routinely commenting on rumour, speculation or proposals.”
This article is taken from Landlord Today