Dreamed up by the Lib Dems back in 2009, this much talked about new tax is a genuine proposition, should Labour get into government next year. Not that I've personally ever bought a house for over £2million and I'm never likely to, but I personally think it's outrageous! Firstly the name is highly deceiving, you certainly don't need to own a mansion in order to pay it. In parts of London you could own a one bedroom flat and still be faced with the new tax. Secondly, whether you're a pensioner who purchased your property many years ago whilst still working, or a hard working young family, who invested wisely and borrowed a huge sum of money to get the house of your dreams, if you paid more than £2million, regardless of circumstances, you will be liable to pay a 1% mansion tax every year. Also consider this when forming your own opinion. House prices have risen 69% over the past 10 years, considerably more in this part of London, if property continues to rise at that rate people buying homes at £1.2million today will be paying mansion tax in 10 years from now. Most people buying at that level through ourselves are only in a position to do so because they have made money through the sale of their first or second property and funnelled all of that into the next purchase, whilst generally mortgaging themselves up to the hilt. Not because they are earning fortunes in their jobs and have private jets and sprawling manor houses to helicopter out to at weekends. "Not that I've personally ever bought a house for over £2million and I'm never likely to, but I personally think it's outrageous!The whole point is to supposedly cut taxes for the average person by taxing the super wealthy. I'm sorry, but should this tax come to fruition, all you are doing is punishing the hard working middle classes who have grafted to get themselves a nice house (certainly not a mansion) in an area which allows them to get to work without having to leave at the crack of dawn and be home before bath time. It is those people who will be effected most and quite possibly have no option but to sell up, as I think a large portion would struggle to afford circa £25,000 each year, on top of the already crippling stamp duty and various other taxes we all have to bear.
