If we have a Labour government after next year’s general election in May the chances of a Mansion Tax are pretty high. The proposed tax seems to be quite popular across the electorate, it is seen as a tax that only a small group, concentrated in London and the South-east would have to pay with enormous benefits for the NHS. The mansion tax was perhaps named to appear to apply to unreasonably large properties, in its current form however it will apply to any residential property worth more than £2m. Savills estimates about 40,000 residential properties are worth between £2m and £3m and about 57,000 homes are worth over £3m. So quite a few clients could be affected.
The proposed tax would operate on a slab basis with a flat-rate charge applying to each slab or band of property value. The bottom band would be £2m–£3m and shadow chancellor Ed Balls has announced the flat-rate charge for anyone in that slab would be £250 a month or £3,000 a year.
A client with this kind of property might also be reasonably concerned about whether a Mansion tax would have a significant impact on the value of their home for inheritance tax purposes. The effect on values could also be important when considering downsizing. Enable's IFA’s are here to help you anticipate any possible changes on the horizon that may affect your wealth management.
Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE
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