Thousands more Londoners face being dragged into paying the “mansion tax” championed by the Liberal Democrats, the Standard reveals today.
The levy would initially hit homes worth over £2 million, with a one per cent charge on the value of the property over this sum.
Nick Clegg’s party sought to play down fears that the tax would gradually hit less expensive homes by stressing the £2 million threshold would rise in line with average house prices.
But property prices in affluent boroughs, where many £2 million homes are, have soared faster than the national or London average. The Conservatives predicted 100,000 homeowners in the capital with properties worth between £1 million and £2 million, when the levy was introduced, would be caught.
Their calculation is based on house prices rising over the next 12 years as fast they went up last year and the threshold following a national average rise. “The Lib-Dems are mounting a fresh assault on London homeowners targeting thousands of hard working families,” said Conservative Party chairman Grant Shapps.
The Lib-Dems insist more people will not be sucked into paying the tax as house prices rise. “Under our policy, the threshold would start at £2 million, and rise in line with the average increase in house prices,” says a Lib-Dem document.
“So a house worth £1.9 million would never pay the tax if their property price increased at the average rate.”
The document adds: “The tax system is unfair. A wealthy person with a property worth £3 million pays the same council tax as a family in a home worth a quarter of the price.
“Our mansion tax will ensure the rich pay their fair share.” It accuses the Conservatives of blocking the charge “because they are worried their rich donors will not support it”.
People should not have to be “constantly worrying” about being eavesdropped on by the state, Nick Clegg said today in a speech proposing new curbs on spying agencies. “Privacy is integral to a free, fair and open society,” the Deputy Prime Minister told the Royal United Services Institute. After revelations about widespread US monitoring of the internet, he proposed a new Inspector General to oversee intercepts and intelligence work and annual reports on government requests for internet data.
