Proposed ‘mansion tax’ makes ‘no economic sense’, expert says

• The Chancellor is reportedly planning to introduce capital gains tax on the sale of primary residences above a certain value.
• This proposed measure aims to help plug a reported £40 billion hole in the public purse.
• Under the mooted plans, higher-rate taxpayers could face a 24 per cent levy on gains, while basic rate taxpayers would pay 18 per cent, a significant departure from current tax-free sales.
• Property experts warn that such a tax, potentially starting at a £1.5 million threshold, would stall high-value housing sales and disproportionately affect older homeowners and those in London.
• Critics also suggest the change could lead to an exodus of wealthy individuals from the UK and create disincentives for homeowners to sell, disrupting the housing market.

IN FULL

Reeves’s ‘mansion tax’ makes ‘no sense’ and could lose Treasury money, former IFS chief warns