Greengates Builders Merchants Accrington, Lancashire Asks “Is This Fair”?
Nick Clegg will today demand new taxes on multi-million pound homes in the forthcoming budget to “provide desperately needed help for millions of ordinary people”.
The Liberal Democrats want to introduce either a one per cent levy on properties worth more than £2 million, or new council tax bands on expensive homes, the Deputy Prime Minister will say. He suggests the money raised could be used to cut income tax.
In a speech today, he will say there should be an additional “modest contribution” from the very rich.
“Either in the form of a mansion tax: a one per cent levy on properties worth more than £2 million, applied to the value over and above £2 million. Or they could introduce new council tax bands at the top end, affecting properties over £2 million.
“Right now, there are properties for sale for tens of millions of pounds around Regent’s Park. Whoever buys them will pay the same in council tax as a family living in a three-bed semi in Lewisham.”
Mr Clegg will laud the increases in the tax-free personal allowance which benefits anyone earning less than £100,000 and will suggest that extra money raised from the property taxes could be used to reduce income tax.
This will provide “desperately needed help for millions of ordinary people. Nothing could do more to demonstrate a commitment to greater fairness in our tax system,” he will say.
The Conservatives are opposed to new property taxes because it would lead to an intrusive revaluation of properties in England. There are also concerns that although it may initially hit those with properties worth £2 million, over time house-price inflation would mean it affected more householders.
Also, many of those with expensive properties are pensioners, who are so-called “asset rich but income poor”, and may be forced to sell their family homes if they cannot afford the extra tax bills.
“So what do you think? Should this get the go ahead?” Asks Greengates Builders Merchants Accrington, Lancashire.