Investment - Articles - Comments on Chancellors introduction of new Mansion Tax

Steve Sands, Private Wealth Leader at Mercer said: “This proposed property tax will not yield the results the Chancellor wants.  It is expected to be very costly to administer and could put the brakes on high-end property values, which could reduce inward investment and stagnate the wider housing market.  In the vast majority of cases, it is likely to penalise people whose houses have risen in price but are cash poor.”

Rob Hillock, Head of Personal Financial Planning Broadstone: “The Chancellor’s introduction of a ‘Mansion Tax’ on houses valued above £2 million will likely prompt many homeowners to get an up-to-date valuation of their property wealth. It has the potential to create market distortions as homeowners look to reduce the value of their home to avoid additional tax or prompt some to downsize to smaller, cheaper homes. The OBR notes in its comments that the reform could see price bunching below each of the four new price bands as homeowners look to minimise their tax liability.”