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Topics: Budget 2012| George Osborne| Liberal Democrats| Nick Clegg
The Liberal Democrats are urging Chancellor George Osborne to include a mansion tax on homes worth £2m or more in his Spring Budget announcement.
They are also looking for the inclusion of measures to stop the rich avoiding stamp duty when they sell their properties, according to a report in The Independent published today.
Deputy prime minister Nick Clegg and other Liberal Democrat cabinet ministers will make their demands in behind-the-scenes talks with Osborne before the announcement on 21 March.
It is thought that, although the Chancellor is unlikely to introduce a mansion tax immediately, he may set up a review to look at raising the tax burden on the rich by targeting property assets rather than income.
Osborne is also likely to act on stamp duty, following several reports that the super rich regularly reduce stamp duty payments on their high value homes by putting their property in an offshore company, then trading the company rather than the house.
Other Liberal Democrat proposals include the introduction of a land tax and scrapping the 40% tax relief on pension contributions for higher-rate taxpayers.
They also want a crackdown on ‘non-domiciles' - foreign residents living in Britain who do not pay tax on their overseas earnings.
To increase the pressure on Osborne, some Liberal Democrats plan to join Labour in trying to force the introduction of a mansion tax if it is not included in the Budget.
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Clegg, go away!
SO you work hard and get your "mansion" - on the way up you pay a lot of tax. If you have a car fit to go with the mansion you pay a lot of fuel duty (as it is a gas guzzler no doubt). You may have a 4X4 for wet days? More fuel duty and VAT. You more than likely have private medical insurance and your kids are privately educated thus saving NHS and Education costs to government You are more than likely in the 50P tax bracket by now. You may NOT be a leper of a banker or head of the MAS or similar but you may be a genuine hard working person. So when you have paid so much to get there why do you have to keep paying more and more? It is about time Cameron pushed Clegg and his like minded wet blankets off the bandwagon. Fair is good but not everybody owning a so called "mansion" is a robber baron similar to a pantomine "Mr Nasty". Cleggs lot encourage underachievement but then again they have been doing that for years in their own political party.
Posted by: dwinsal
Spot on Dwinsal!
If Dozy Dave lets these numbskulls get away with this he needs a good kicking. Not only do the points made by Dwinsal above hold true, but when there people eventually peg it, the greedy Treasury grabs a further 40% in IHT. If there is to be such an iniquitous tax then at least abolish IHT on the property.
Posted by: Harry Katz
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Mansion Tax
Won't work - just 'cos the property is valued above £2M doesn't mean that the landowner has the disposable income to pay the Mansion Tax on it!
Posted by: John Morgan