Latest mansion tax should be on top % homes locally not nationallu

Remember we are dealing with a left wing government here. Socialists believe that all wealth belongs to the state really. They just chose how much you are allowed to keep.

So don't assume any fairness will apply. Or any thought as to the effectiveness of the policy or how much it will raise. Labour hasn't applied logic to any of their changes so far. They don't care if the tax is unfair or targeting any particular group. They just hate people they consider rich which is the middle classes. So I definitely think they will be gunning for our houses now. Why wouldn't they? Perfectly logical to them looking at what destruction they have already wreaked.

We should all be living smaller and less prosperous lives and no one should be able to buy any advantage over anyone else. And that incudes a house over £500,000. And if you try and better yourself Labour will slap you down in the name of "fairness and equality".

I’m not fine with it at all! We already pay a high council tax and are taxed in the highest bracket - this is totally unfair. We have done a lot of work to our house to increase its value and make a home that works for us - why should we have to pay another tax for that?
They are destroying the economy and now the housing market 😩
Still paying the mortgage this will be a step too far.
My graduate child is struggling to find a permanent job too - just a labour induced bloody mess as predicted!

Doesn't make sense to me OP.

If you pay a rate based on house value over some local threshold, then if you had for example a £2.5m house in london with a threshold of £2m and the same value house up north with a threshold of £500k then the northerner would pay 4× more tax for the same value house.

Trying a different link to the same blog.

https://www.linkedin.com/posts/danneidle_reports-suggest-labour-may-introduce-capital-activity-7364208499863486466-1d4O?utm_source=share&utm_medium=member_ios&rcm=ACoAAA1Cn0QBQUrpGgFz0usvTS3-xih_CrUcxRw

Don’t know why my post has been blocked - it contained a link to Dan Neidle’s blog about why CGT on main residence is a very bad idea. It will completely crash the housing market as no one would want to move house.

There are far better tax changes to be bare around property - abolish Stamp Duty and revamp Council Tax for a start.

If you took the money out, moved somewhere cheaper, and put the rest in shares, you would be turning an unproductive asset into a productive one. The fact that it will force land rich cash poor folks to move to something smaller is also not, I would suspect, an unintended consequence...though removing stamp duty on those moves would be fair, too I would say.

Generally speaking stamp duty on homes is a poor tax mechanism, as it prevents people from moving when it would benefit them to do so, and puts an inflationary spiral on house prices (because people want to sell for what they paid, including the stamp duty).

I can't get my head around why people think rich Londonders should pay more Council Tax to subsidise the North. The whole point of Council Tax is that it's a local tax to pay for services in your own area. You can think the rich in your area should contribute more than the poor for local services but to expect someone from outside the area to contribute towards them is bonkers.

So the gain as defined by the CGT rules will be what she may go for.

I wonder how often? On sale or transfer? Or every 5 years? 10 years? On your primary residence (which will I think be the target)?

Apologies, I didn't realise you were talking about CGT.

Any CGT must be index linked and account for all renovation and improvement costs. The latter would be hard to evidence retrospectively but is very important.

Have you seen how much council tax those people up north are paying compared to London? Yes, the rich down south absolutely need to pay more. Thems up north have some of the highest council tax bands in the country already.

If you're up north it will probably be worth £70 now, house prices being what they are.

We all live in massive mansions up north don’t you know! I bought mine (6 bedrooms, 4 bathrooms, swimming pool in the basement) in 2016 for £75 and it’s now worth eleventy billion pounds! And I’m on benefits!

But people have already paid Stamp Duty once on the house they have bought. Why should they pay it again when they sell?

Just replying to someone who suggested that northerners had more disposable income than southerners which made me chuckle.

The tax is another chippy one I agree. And won't work. Having said that it is true that a southerner will have valuable equity due to an increase in house prices (assuming they have owned their house for a while) that a northerner won't. Plenty of retired southerners are selling their ordinary houses down south and buying similar in the North and living off the profit. That option is not open to northerners. That's simply a fact. Should that increased equity be taxed on sale? I don't agree with Labour's taxation of envy having kids at private school but plenty of people might think it's a good idea

CGT tax on main residence would kill the housing market overnight - no one would move house!

Even Dan Neidle, a paid up Labour member, has said it is a terrible idea.

https://taxpolicy.org.uk/2025/08/21/labour-cgt-on-homes-budget-analysis/

A Mansion Tax is just bad policy. It would be very hard to administer over and distort the market. It is also a complete red herring as it wouldn't bring in anywhere near enough money to make a meaningful difference to public finances. We all know that this can only happen with necessary spending cuts the government are too frightened to make or raising one of the big taxes.

It is punitive for the South where houses cost more. It's all very well pretending that people live in the south because the infrastructure is better or whatever else but the reality is that most people live where they work or where they have a family or social network. It is very difficult in this context for people to uproot themselves and move across the country because there is cheaper housing. I don't live in London but I also am not in a position to just randomly move to a cheaper area because housing costs less. This is what keeps people where they are and paying for more expensive housing than they would like.

Some people in the South may be sat on lots of unearned equity but lots of people are struggling with sky high mortgages and ploughing a very large percentage of their monthly earnings into their accommodation. They have less disposable income than their northern counterparts and are expected to be willingly considered wealthy because their money is trapped in a house as opposed to being spent on holidays and cars. It is insane!

@Marshmallow4545 how does it not make sense? obviously they would work out a time period of exemption. I have moved recently...

I worry about this policy as the threshold will likely start at £2m but then end up being a lot less over time before we know it, house prices will have increased and the threshold reduced meaning many normal families will end up paying a mansion tax.

This doesn't make sense in the context that lots of people have already people a hell of a lot of stamp duty fairly recently. You can't then seek to whack on an annual % tax on the property. This is especially true where interest rates have shot up so people are already servicing more expensive mortgages than they originally envisaged. This plan would cripple households and lead to a lot of forced moves of people in negative equity.

This is bad news for everyone. We need to be very very careful about how we implement and change taxes associated with property.