NHS To Be Funded By 'Mansion Tax' Under Labour Proposals. The increase in NHS funding is to be paid for by introducing a new annual wealth tax on high-value homes if Labour gain power next year.
The annual levy would apply to homes with a value of £2m or more and it is estimated that approximately 100,000 households would be affected (although it is considered that 80% of these would be in the South East and London).
A couple of potential issues with the draft proposals:
- How long will it be, once this new property tax is introduced, before the threshold is reduced to £1m? Or perhaps £500,000?
- On what basis would people have to value their homes? Every 5 years?
Because of the limited options surrounding Inheritance Tax planning surrounding the main residence, many see Inheritance Tax as a form of property tax anyway - even though it is only payable on death.