Labour is reportedly contemplating the reintroduction of a mansion tax in Rachel Reeves’s upcoming Budget, which could result in average homeowners facing annual payments of thousands of pounds. Concerns have been raised that Reeves may advocate for this tax following the Conservative Party’s commitment to eliminate stamp duty.
Kemi Badenoch highlighted property taxes in her recent conference speech, making a strong promise. A recent poll indicates that nearly two-thirds of the British public support the removal of this tax, with backing from supporters of all four major political parties. This development has fueled speculation that the Chancellor, who is trying to address a projected £30 billion shortfall in public finances ahead of the Budget, may announce significant reforms.
The International Monetary Fund has called for a revision of property tax, and the Treasury has not dismissed reports suggesting that an annual charge based on property value is under consideration. This could satisfy Labour MPs who have been advocating for “wealth taxes” to finance increased spending. However, it could also mean that households would be required to pay substantial amounts each year, depending on the specifics of the proposals.
Credit to : UK BULLETIN