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of labor The autumn budget is fast approachingWith dozens of potential measures in the build-up to the major fiscal event.
Chancellor Rachel Reeves may need to identify at least £22 billion of new funding into the program as weak growth forecasts limit the government’s financial flexibility. The Institute for Fiscal Studies (IFS) recently found.
Economists have examined how wealth is taxed as Ms. Reeves considers her options for Nov. 26, with many pointing to ways to generate more revenue. picked up from people’s homesMinisters have stressed that any tax rises must be focused on those with the most wealth, as living standards in Britain continue to fall,
One of the ways the Treasury is understood to be considering achieving this is to impose a new charge on high-value assets. Which some people have called ‘Haveli Tax’.
Different versions of how the tax would work were released, both with the potential to raise considerable sums for the exchequer.
Recently, the Chancellor is understood to be considering a major overhaul of the council tax system, which would focus on higher-value homes.
This will lead to a reassessment of all 2.4 million properties in the highest tax band in England, and a rate increase for the 310,000 most expensive properties (worth more than £1.5 million).
The scheme will raise around £600 million per year many timesAnd it could result in bills of an extra £2,000 a year for high-value home owners.
David Fell, of estate agency Hampton, said: “I think the government is saying that the existing council tax bandings will be used as a guide, but they are not sufficient in themselves to accurately value homes. It looks like it is looking to revalue around 2.4 million homes, with a new levy imposed on around 300,000 valued at £1.5 million or more.”
However, a simpler proposal is also being considered, involving a levy on owners of properties worth at least £2 million with an annual fee of one per cent of the amount over that threshold. For example, this would mean a £10,000 annual fee for homeowners with properties worth £3 million.
According to figures from estate agent Knight Frank, around 150,000 homes fall into this price range, with the majority in London and the South East.
Tom Bill, head of UK residential research at Knight Frank, said: “Thirteen years after the Liberal Democrats first proposed a mansion tax on properties worth more than £2 million, the Treasury is reportedly considering the same plan.
“Even the proposed range is the same, which tells you everything you need to know about house price inflation since 2012. Average prices in prime central London have fallen by 8 per cent during this period.”