Rachel Reeves accused of plotting to hit pensioners with more tax | Politics | News
Rachel Reeves has been accused of taxing Brits in a “double whammy” amid plans to introduce a property tax that could impact homeowners across the country. The Chancellor of the Exchequer confirmed earlier this week that homes bought for less than £2 million will be revalued; This means those who are renovating or adding additions to their homes may be prepared to pay more taxes.
The Valuation Office will “record changes to estates” such as conservatorship expansions and could see tax rates on retirees increase exponentially. The so-called mansion tax will affect 165,000 properties worth more than £2 million.
Advisory documents seen by Daily Mail It suggests that more properties may be subject to estate tax in the future. Reeves’ proposed mansion tax is scheduled to go into effect starting in 2028.
Reeves’ proposal would see people living in homes worth more than £2 million pay an additional £2,500 a year. Those whose homes are worth more than £2.5 million could see their payments increase to £3,500.
Properties worth more than £3.5 million will face a £5,000 annual bill, and properties worth more than £5 million will be charged a £7,500 fee.
Tory frontbencher Gareth Bacon said: “Labour’s new family homes tax is an aspiration tax. It’s a double whammy on top of inheritance tax. Many pensioners will be forced to put off the new tax surcharge with a draconian ‘pay as you die’ policy. And Labor politicians will no doubt drag more and more families into the net.”
The Office for Budget Responsibility (OBR) has warned that those who see their valuations pushing them into the new mansion tax bracket are likely to succeed in appealing the new rate. The OBR suggested 20% of property owners would appeal the outcome, with 40% likely to succeed.
Ministers are also considering putting a ‘premium’ on vacant mansions. The move could see annual pay increase by up to 300%.
The new surcharge will rise to more than £400 million by 2031 and will apply to less than the top 1% of properties, the Chancellor said during his Budget speech.
The budget document added: “Local authorities will collect this revenue on behalf of central government and any additional costs arising from the implementation of this new tax will be fully covered. “The revenue will be used to support the financing of local services, with further consideration at the next spending review in 2027.
“The government will consult on the detailed implementation of HVCTS in the new year, including identifying who may need additional support to pay the fee and how that support will be provided.”
