Will your – or your client’s – London property be subject to the proposed UK mansion tax? See Property Division’s handy infographic to see where the majority of homes in London will be affected.
There hasn’t been an election in recent years in Britain that will have a bigger affect on property than the one to be held on 7 May 2015. Perhaps the biggest impact will be the mansion tax. This is an election promise of both the Liberal Democrat Party and the Labour Party, and the bookmakers have either a Labour outright victory (15/8) or Lib-Lab coalition (3/2) as favourites to form the next government.
So who will pay this tax, which will start at around £250 per month for residential property in the £2-3million category? Property Division, the property investment news hub, has created an infographic that identifies how many properties in each London borough are worth over £2million, which is where the tax will start. The vast majority of the liable properties are in London, with 11,462 properties being liable, according to Property Division.
Every owner of affected home will have to pay, with higher-rate tax payers (those earning over £42,000 per annum at today’s rates) paying immediately, but those earning less than this able to defer payment until the property is sold. As Property Division point out: “While it should come as no surprise that Westminster and neighbouring Kensington and Chelsea top the list of boroughs with the highest number of £2m-plus properties, it is interesting to note that London’s property boom means areas not normally associated with wealth, such as Croydon and Tower Hamlets, also have properties that pass the mansion tax threshold.”
Brought to you by Property Division, The Property Investment News Hub.