Healey rules out expanding mansion tax to £1.5m homes
John Healey has ruled out widening Labour’s so-called mansion tax to cover homes worth £1.5m, following warnings that the tax change would hammer middle-class homeowners in the capital. The Chancellor had been considering widening its council tax surcharge to cover homes valued at £1.5m or more, as the Treasury seeks extra revenue to fund cost [...]
Chancellor John Healey has dismissed the idea of expanding Labour's mansion tax to include properties worth £1.5 million, in response to concerns the tax change would disproportionately impact middle-class homeowners in London. The proposal had been considered as the Treasury sought additional revenue to help finance cost-of-living support.
Former Chancellor Rachel Reeves proposed the tax on homes valued over £2 million last year. The forthcoming mansion tax will take effect in 2028 but has already drawn criticism from the opposition, who argue it unfairly targets family homes. When facing dwindling fiscal headroom, Healey had been contemplating reducing the threshold to £1.5 million.
However, he has now ruled out this modification, according to reports from the Sunday Times and the Financial Times. This decision will undoubtedly provide relief for thousands of London homeowners, as a widened mansion tax would have not only doubled the number of homes affected but potentially tripled the count in suburban London, according to City AM analysis.
Written by urgent.news from City AM's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
