‘Robert Rhodes, QC, brings four key arguments against a mansion tax in a letter to the FT. Mr Rhodes points out that a property over £2m in value is already subject to taxes equalling almost 50% when Stamp duty and IHT are factored in, while highlighting that elderly people whose homes have risen in value over many years would be forced to move out as their incomes would not allow for an annual tax.
Additionally, the logic is left wanting as someone with multiple properties and assets with values under the threshold would not be required to pay anything under the proposals.
Finally, the original justification has disappeared, writes Mr Rhodes, as that was based on Labour retaliating against the temporary cut in income tax from 50p to 45p –Ed Balls has since said he would reinstate the higher rate.’
Source: Financial Times