As you may be aware, there have been discussions in Parliament on introducing a so called ‘Mansion Tax’ as part of plans to increase taxes on wealth. Although the starting point has been suggested as £2 million, the lowest starting point proposed was an annual levy on all homes valued at £1million and above. It has been mooted that 1% of the property value would be payable annually, in addition to Council Tax.
I am very much opposed to the Mansion Tax as many people are asset rich, but cash poor. What’s more, as house prices rise, many hard working families will find themselves liable for an enormous annual tax bill.
Having surveyed constituents on this issues, over 2,000 people responded. 98% of respondents stated that they were opposed to the idea, many of whom said it would cause financial hardship and to move home.
As your local MP, I have fought against the proposals since their inception and will continue to do so. However, Labour and the Liberal Democrats continue to make the case for the Mansion Tax, despite the catastrophic impact it would have on families in Finchley and Golders Green. Make no mistake about it, this is another tax on London. Property prices have soared by 612% since 1991, meaning although many are high in value, they are certainly not ‘mansions’. The word ‘mansion’ suggests this is a tax on the rich. It is not. It is a tax on hard working families who have made the right decisions, worked hard, and bought their own home.
Furthermore, Labour have said that the rate at which the tax applies would rise in line with average house prices, however, what they have failed to say is that house prices in London are rising far faster than the national average, meaning more and more families locally would find themselves liable for an enormous annual tax bill.
There is also another hidden danger to Labour’s plans. In order to determine which houses would be taxed, they would all have to be valued by the Government. Therefore, even if your home is not classed as a 'Mansion', you are likely to end up paying more in tax as a result of the plans.
Your current council tax is determined on 1992 values, the last time homes were assessed. In order to determine which council tax band your home falls in to, average prices across England are used. Some people argue that all houses would simply slide up the bands equally, however, house prices in the UK have not risen equally. Even locally we know some areas have seen values rise more than others.
Whether it is the so called “Mansion Tax” – or the necessary revaluation, Labour plan to tax hard working families living in London and elsewhere. Their plans would ensure that 65% of homes locally would face paying the Mansion Tax or have their council tax increased.
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