‘I own a £2m farmhouse – Reeves’ mansion tax is nothing but punishment for being well-off’
Thirty years ago Christopher Broadbent bought a former farm labourer’s two-bedroom cottage in rural East Sussex.
The founder of a consultancy firm carried out a “Damascus conversion” of the house, doubling its size and purchasing 50 acres of surrounding farmland for a nature reserve and glamping business.
But now, with his farmhouse and land thought to be worth around £2 million, the 75-year-old fears he and his wife could be put in a “deeply uncomfortable” situation by the so-called mansion tax, which is expected to be announced in Wednesday’s Budget.
“I’m not saying we couldn’t afford it, but there would be a deep sense of unease and injustice,” the Labor voter said.
Mr Broadbent, who plans to retire next year, already pays £3,600 a year in council tax on the four-bedroom house, which is in the top three council tax bands (F, G and H). Under Rachel Reeves’ expected plan, the property, which is in the upper end bands, could be revalued to check whether it meets the £2 million threshold for mansion tax.
Tax, as reported with TheTimesIt will see the average ‘manor’ pay around £4,500 a year and raise up to £500 million for the Treasury.
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But there are fears the plan could impact the property market and cost the government money through a drop in sales, which could lead to money being raised through taxes.
Ms Reeves’ apparent move comes after she refused to abolish income tax as she sought to solve a £20bn black hole in the public finances.
Mr Broadbent described the move towards a mansion tax as “playground politics”. latest YouGov poll It showed that most voters reject a tax on expensive homes.
“Politicians need to be careful with language because the phrase estate tax has the wrong connotations. It essentially means ‘slapping the rich’.”
“Not everyone lives in a mansion, but many people live in a house that is more valuable, regardless of the threshold. It’s a blunt instrument, a kind of punishment, really. It’s politically motivated, it’s unrealistic, especially if it’s not going to raise much money.”
“It’s a crude approach and I don’t think it would do much good. It would be much better to do something about income tax.”
Times reported that approximately 100,000 homes would be affected by the tax; This is a surcharge collected through council tax bills and has several different rates depending on the value of the home.
The Office for Budget Responsibility, the fiscal watchdog, reportedly recommended This move could slow down the housing market, especially in London.
Mr Broadbent said he feared families with subprime mortgages in London could see the value of their homes fall as a result of the market for high-value properties drying up.
“This is going to push some people into negative equity,” he said. “You might be living there with your partner and two or three kids and they’re going to school and everyone’s making ends meet and living their normal lives and suddenly, through no fault of your own, you have to pay a huge tax on your house and you can’t afford it.”
As the exact details of the estate tax proposal have not yet been revealed, it is unclear whether people like Mr Broadbent, whose land is classed as agricultural land, will be able to claim agricultural relief based on the property value.
He added that it was already at risk of being “disrupted” by future increases in council tax and business rates.
“I just don’t know [if we would come under mansion tax]”he said. “It would probably be extremely disturbing [for us].”
When asked why he wouldn’t be able to sell to improve his financial situation if he had to pay the tax, he replied: “How would you feel about being forced to do the same?”
He added: “Homes are hugely important emotionally, especially if they are places where you spend your life trying to do something good, like turning to nature in the quest for net zero.
“To me this seems like a kind of politics of jealousy and punishment, and we shouldn’t act that way.”
