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Mansion tax will knock £50,000 off value of £2m home, says Treasury
The UK Treasury's council tax surcharge on homes over £2 million aims to correct tax imbalances and is linked to a predicted 2.5% average price drop, impacting fewer than 1% of properties.
- The UK Treasury announced a high council tax surcharge on homes worth more than 2 million, and Dan Tomlinson said the policy costing assumes an average 2.5% price impact.
- Responding to a parliamentary question, the Treasury spokesman defended the reforms as correcting tax imbalances and cited the Office for Budget Responsibility after James Cleverly, shadow housing minister, raised concerns.
- Split into four-value bands, owners of homes valued at £2.5 million–£2.5 million will pay £2,500, rising to £7,500 for homes over 5 million; revaluations next year will assess whether properties in council tax bands F, G, and H exceed £2 million.
- Savills warns that a 2.5% decline could reduce stamp duty receipts by �73 million, risking revenues and market activity for owners of �2 million homes, which could lose �50,000 in value.
- Greater London is expected to bear the greatest impact due to its concentration of multimillion‑pound homes, which account for 42% of stamp duty receipts, despite fewer than 1% of properties being affected.
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Leaning Left0Leaning Right1Center3Last UpdatedBias Distribution75% Center
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- 75% of the sources are Center
75% Center
C 75%
R 25%
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