Labour plans for mansion tax subject to criticism

By in

UK Labour leader Ed Miliband said his party plan will give an additional £2.5bn into the UK National Health Service by 2020, which he expects to raise via a mansion tax on properties valued at over £2m, a new levy on tobacco firms and a crackdown on tax avoidance by reducing loopholes used by large firms that move profits out of the UK.
UK Labour leader Ed Miliband said his party plan will give an additional £2.5bn into the UK National Health Service by 2020, which he expects to raise via a mansion tax on properties valued at over £2m, a new charge on tobacco firms and a restriction on tax avoidance by reducing loopholes used by large firms that move profits out of the UK.

During his speech Miliband said Labour would give the healthcare services a financial push, something it without question is in need of. However he forgot to mention deficit and immigration issues in the course of opting to speak without notes or prompting.

However Baker Tilly’s senior tax partner, stated analysis suggests the mansion tax as outlined would not necessarily be able to plug the gap in NHS funding. ‘There are also questions as to how this would be introduced. Would homeowners have to make an annual declaration of income, or would it simply follow from the tax return?’

Miliband also failed to talk about what protection will be in place for individuals who are asset-rich yet cash poor, nor for those who might own a £2m property but have a large mortgage. Another issue that has been raised is the situation where one person owns a single £4.5m house which would be subject to the levy, but what about those whose property wealth of £4.5m is spread between properties throughout the UK all less than the value of £2 million. Is this reasonable?