ONS Statistics Strengthen Case for Mansion Tax

Statistics have shown that only a very small number of poor British households live in very expensive properties, removing one of the obstacles to a mansion tax. The ONS reported that only 1% of households with incomes in the bottom 40% had property wealth over £500,000.

With Labour and the Liberal Democrats proposing to introduce a mansion tax for properties worth more than £2m after the next election, the figures suggest that few people who live in expensive homes lack the income to pay the tax.

The ONS survey found that only 2% of middle-income earners had property assets worth more than £500,000. The top 20% of households, measured by income, held 44% of total wealth, while 50% of households with top incomes were also in the top 20% of the wealth distribution.

Source: Financial Times

We say: The principle argument against a Mansion Tax isn’t that it would be imposed on people who are asset-rich but cash-poor: it’s that it’s a poorly-targeted Selective Wealth Tax. It makes no sense, for example, to charge the tax on a man who owns one expensive home but not on a man who has half a dozen homes of lower individual value: or to charge it on the value of a man’s house but not his collection of valuable antiques, paintings, classic cars or whatever. The only merit of a Mansion Tax is that it’s a simple and cheap way to collect money. But so is mugging.



Sam Inkersole

In 2022, Sam won the Taxation’s Rising Star award at the Taxation Awards in and was named in the Accountancy Age 35 Under 35.

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