Qualified advisers answering your
Financial Questions
call 0800 092 1245

Ed Balls outlines mansion tax


Shadow chancellor Ed Balls has announced that if Labour come into power in the upcoming general election he will introduce a “mansion tax”, having it start at £250 for homes worth between £2 million and £3 million.
Ed Balls has also announced that homes worth “tens of millions” and second home owners would pay much higher rate of the tax, which Labour has called “progressive”.
Some MP’s have expressed concern that the tax could be devastating for people who bought their homes years ago and seen their market value skyrocket, but are cash poor or on low or middle incomes. The shadow chancellor has said people who are “asset rich” but “cash poor” who do not earn enough to pay income tax at 40%, would be able to defer payment of the mansion tax until "the property changes hands".
Mr Balls has said:
“Ordinary Londoners should be protected and wealthy foreign investors must finally make a proper tax contribution in this country,”
“We will ensure those owning properties worth £2-£3 million will only pay an extra £250 a month through this new tax — the same as the average top band of council tax.
“Owners and investors in properties worth tens of millions of pounds should make a much bigger contribution.”
Conservative MP’s are opposed to the idea, and have called it “an attack on aspiration”.
The proceeds of this tax will go towards the funding of the recruitment of 38,000 new GPs, nurses, midwives and other NHS professionals.

Need financial advice?

If you have any personal finance questions related to this news article, then please contact our financial advisers. You can get in touch by asking a question online, calling us on 0800 092 1245, or by arranging a visit.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details