Budget 2012: how ‘mansion tax’ would hit countryside and cities (Telegraph)

In a pre-Budget 2012 blog, Ian Cowie (Daily Telegraph) speculates on the Mansion Tax argument and refers to the CPS’s recent publication Taxing Mansions by Lucian Cook.

“What kind of Conservative Chancellor of the Exchequer would force older homeowners to choose between losing a lifetime’s memories in the family home or allowing eye-watering interest charges to destroy a lifetime’s savings?

According to the Centre for Policy Studies (CPS), a mansion tax would hit the ‘income poor but equity rich’ – many of them older people. A third of properties in London worth more than £2m have been in the same ownership for more than 10 years; 15pc for more than 20 years. The think tank forecasts that a 1pc annual charge would force many to sell but raise no more than £1bn a year.”

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Date Added: Friday 16th March 2012