Plans for a ‘Mansion Tax’ which will include three-bedroom homes in London and South East

It is claimed that the proposed ‘Mansion Tax’ will affect ‘almost exclusively’ homeowners in the south east of the country.

Labour has said that if they are voted in, they will tax wealthy homeowners an average of £15,000 a year, each to fund the NHS.

The mansion tax plans could generate more than £1.6 billion in additional revenue for the UK each year, which Labour want to utilise to employ 36,000 new doctors, nurses, midwives and care workers.

Many experts have reacted to this saying London and the south east will be shouldering the cost. With more than 100,000 homes to be affected by this new levy, it has been claimed that this will not be a ‘mansion’ tax, as many three-bed family homes will be affected.

It has been estimated that this new tax could eradicate almost £1 billion from government revenues which could result in wealthy investors being deterred from buying in London.  The plans could cause ‘a significant leakage’ in government income from stamp duty, inheritance tax and capital gains tax.

The industry has reacted to Labour’s plans with disapproval stating they proposals will injure the growing property market. Whilst others have suggested that the ‘mansion tax’ is in fact a ‘property tax’ with different name to suggest extreme wealth and decadence will be penalised over the ordinary man. But in reality, many more of us may find we are, officially, living in a mansion by 2025.