Proposed tax on £1m+ homes

The Liberal Democrats plan to rebalance the tax system by targeting rich homeowners who live in properties worth more than £1m. The new tax of 0.5% would be payable on an estimated 250,000 properties and raise more £17bn a year. The Lib Dem leader, Nick Clegg said: “It affects 1% of property owners in this country”. The tax would mean owners of a £1.5m home would pay an extra £2,500 a year in tax. For a £4m property, the figure would go up to £15,000.

Clegg said they would use land registry documents to establish the value of homes. The details of the new policy will be set out by Vince Cable, the party’s Treasury spokesman, in his speech to the Lib Dems’ annual conference in Bournemouth.

21st September 2009