The average homeowner hit with this tax would pay an additional £32,270 in tax per year, with those at the threshold paying £20,000 and more expensive homes hit much harder.
With the vast majority of two million pound homes located in London and the South East, the new tax, if passed, would also be hugely skewed to homeowners in London and the South East, where 90% of the burden would fall. This region of the country would account for £1.1bn of the total tax haul with the rest of the country combined paying only £132m. Londoners alone would pay 78% of the UK total.
Incredibly, 24% of the total national take from the mansion tax would come from just one area of London, Kensington & Chelsea, where 8,000 homeowners would shoulder almost £300m of the total tax burden (costing each of them £150,000 over a 4 year period). And just 3 London areas would account for over half (51%) of the total UK mansion tax yield, a total of £623m.
Nicholas Leeming, commercial director of Zoopla.co.uk said: “Our detailed analysis shows that the Lib Dems may have got their sums wrong by about £500m and that their proposal would fall quite a long way short of the £1.7bn mooted. Nonetheless, it is a huge sum of money to be paid by a very small number of people.
“Nick Clegg may see himself as some sort of modern day Robin Hood, robbing the rich, but this is a step too far when stamp duty thresholds and inheritance tax already discriminate against those who live in expensive properties.”
