Rachel Reeves, the Shadow Chancellor, is seriously considering a "mansion tax" targeting homes valued above £1.5 million. This potential levy aims to bolster the UK's finances and address a growing fiscal shortfall.
The proposal, gaining traction amid budget planning, would specifically tax high-value properties. Reeves hopes this measure can help plug a significant hole in the nation's finances, as reported by City AM and The Times.
Treasury ministers have so far declined to definitively rule out the possibility of such a tax. Experts at the Financial Times suggest a broader overhaul of UK property taxes is needed.
The move could impact a relatively small number of homeowners, but the potential revenue generated is substantial. This tax would add to existing property taxes, like council tax, and could spark debate about fairness and economic impact.
