'Mansion tax' could wipe £150,000 off top-end homes in London targeted by Reeves Budget

Contributing sentiments towards policy:

56% : "And so from 2028, I am introducing the High Value Council Tax Surcharge in England."
54% : "HMRC and the OBR (Office for Budget Responsibility) assumed forecasts are that the extra tax due on these will be reflected fully in property prices," he stressed.
52% : "Property prices will fall by the expected stream of tax payments due to be paid on those properties.
51% : The charge, being introduced from April 2028, will sit on top of usual council tax and will be applied to property owners, rather than tenants.
51% : "Currently, a Band D home in Darlington or Blackpool pays just under £2,400 in council tax, nearly £300 more than a £10m mansion in Mayfair.
50% : One in four of the homes impacted by the new levy are in just three London boroughs; Kensington and Chelsea, Westminster and Camden, according to the Institute for Fiscal Studies.
50% : The Government estimates that fewer than 1% of all UK properties will be subject to the additional tax but that it will raise more than £400 million in 2029-30.
47% : The "mansion tax" could wipe £150,000 off the value of multi-million pound homes in London hit by the new levy announced by Rachel Reeves in the Budget.
46% : So, high-end homes in the capital, wider South East and other parts of England would see their value fall by what could be calculated as a multiple of the annual "mansion tax".
45% : The cut to the value of properties will not be a simple multiplication of annual "mansion tax" charges, but a complex calculation taking into account future effects on properties, including inflation.
45% : " Stuart Adam, senior economist at the Institute for Fiscal Studies, said the value of properties hit by the mansion tax would fall by the "stream" of payments due under the new levy.
45% : " Mr Adam explained further that there had been "quite a bit of talk" that the "mansion tax" could lead to a big fall in property transactions which he doubted would happen if everyone knew what the valuations of properties were going to be.
43% : " In her Budget speech, Ms Reeves emphasised that she saw the mansion tax as tackling an imbalance in the property taxation system.
41% : One property expert said the multiple of the annual "mansion tax," which could be used to estimate the blow to the value of homes, could be 20 or more.
37% : But he stressed: "What might do that is uncertainty around valuations and particularly the properties that look like that they may be around the thresholds, between the different bands, then there is a risk that the uncertainty about what tax liability is going to go with that property means that sales of those type of properties around the threshold go down in the run-up to the introduction of the tax.
34% : It also said there could be disruption in parts of the property market, particularly for homes around "mansion tax" bands, due to nervousness about whether they will be caught by the new levy.

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