Home / Insights / Blog / Cleggs calls for new mansion tax

Cleggs calls for new mansion tax

Cleggs calls for new mansion tax

A new mansion tax should be created in the UK by Chancellor George Osborne, according to Nick Clegg.

The Deputy Prime Minister said properties valued at more than £2 million should have a levy applied to them.

Among his other plans, Mr Clegg called on Mr Osborne to consider bringing forward the introduction of the planned £10,000 personal allowance for income tax.

Due to the tough climate which is facing the country's families, Mr Clegg said it is no longer enough to gradually increase the threshold over the next three years.

Both Mr Clegg and chief secretary to the Treasury Danny Alexander now look set to lobby Mr Osborne for tax reforms ahead of his 2012 Budget.

Commenting on his plans, Mr Clegg said: "I know the mansion tax is controversial, but who honestly believes it is right that an oligarch pays just double the council tax of an average homeowner even if their house is worth 100 times as much?

"And who seriously thinks we would kill aspiration through a levy on the 0.1% of the population who own £2 million homes?

"The mansion tax is right, it makes sense and the Liberal Democrats will continue to make the case for it. We're going to stick to our guns."

Speaking to the Resolution Foundation think tank, he said: "Every politician now has a simple choice: do you support a tax system that rewards the hard-working many? Or do you back taxes that favour the wealthy few?

"I know which side of the line I stand on – the UK's tax system cannot go on like this, with those at the top claiming the reliefs, enjoying the allowances, paying other people to find the loopholes, while everyone else pays through the nose.

"This is about fairness in the middle. More money in the pockets of the people who need it."

IBB has one of the largest real estate groups in West Londonand the South East, with expertise in commercial development, residential development, real estate finance, real estate investment and management, construction and real estate dispute resolution. Contact a member of the team by visiting the relevant service page, or you can call us on 08456 381 381 or email enquiries@ibblaw.co.uk.