What is a ‘mansion tax’ and how would it work?
With Labour’s autumn Budget less than a month away, the Treasury is reportedly considering ways to shake up property tax in the UK, including a controversial new levy on high-value properties.Chancellor Rachel Reeves may need to find at least £22bn at the upcoming fiscal event, researchers from the Institute for Fiscal Studies (IFS) recently warned, as weak growth forecasts continue to reduce room for manoeuvre.Adding further to the government’s woes are reports that the Office for Budget Responsibility (OBR) is set to downgrade the UK’s performance on productivity, which could add another £20bn gap in public spending.Ministers have insisted that any tax rises should be focused on those with the most wealth, as living standards in the UK continue to drop. It is understood that the chancellor is currently considering a so-called ‘mansion tax’ that would see owners of high-value properties hit with a new charge.Different versions of how the tax could work have been floated, both with the potential to raise considerable sums for the exchequer.Chancellor Rachel Reeves may need to find at least £22bn at the upcoming fiscal event, researchers from the Institute for Fiscal Studies (IFS) recently warned More

