View more on these topics

Lib Dems float mansion ‘super tax’ plans

The Liberal Democrats are looking at proposing a mansion “super tax” which would see their mansion tax plans extended to hit multiple properties including second homes and buy-to-let properties worth a total of over £2m.


The Sunday Times and the Mail on Sunday report the Lib Dems have drawn up a taxation policy consultation which proposes extending an annual 1 per cent levy on property portfolios worth more than £2m.

The policy document will form the basis of the Lib Dems manifesto on tax for the next election, and is said to have been prepared by senior Lib Dems including Nick Clegg’s chief economic adviser Chris Saunders and former banker and education minister David Laws.

Last week, Labour backed the introduction of a mansion tax in order to help fund the reintroduction of the 10p income tax band.

Other plans outlined by the Lib Dems include tougher rules on inheritance tax which would see the taxation of gifts to family and friends within 15 years of death, rather than seven. The consultation also proposes that employers’ pension contributions should be subject to national insurance, and a new “French-style” tax on assets such as paintings and jewellery.

The Lib Dems have also suggested helping first-time buyers save for a deposit by reducing the amount of income tax they pay.

The Sunday Times reports business secretary Vince Cable has backed the plans, but in an interview with Sky News Cable said smoe of the proposals were “wacky”.

Cable told Sky: “There is a working group coming up with ideas on a wide variety of things … some of their ideas are interesting, a couple of them are a bit wacky – the idea of taxing jewellery is completely impractical and intrusive.

“The idea that you combine together people’s properties, probably does not make a great deal of sense because people’s second homes are already subject to capital gains tax, income tax on the rent.

“So there are ideas in there that I am sure will not get any further, but we have a democratic process, we have activists who come forward with ideas, we debate them and then we make policy – but we are a long, long way from that.”


Letters to editor MS 480

Letters to the editor

I was unconvinced by the statistics used in a story on Mortgage Strategy Online last week. It argued that nearly two-fifths – 39 per cent – of interest-only mortgage holders have no plan in place to clear the debt, according to market research consultancy BDRC Continental. The Mortgage Achilles report estimates there 700,000 borrowers with […]

FSA’s mystery shopping shows up poor advice

The FSA announced last week that it had carried out a mystery shopping exercise into the quality of investment advice of six major banks and building societies. As a result of the review, one firm has been referred to enforcement. The regulator says in response to the review firms have agreed to take immediate action […]

Simon Crone MS blog

Building societies in the vanguard

First-time buyers have received little encouragement from lenders in the past few years, but there are early signs that some organisations may be starting to thaw their attitudes to new borrowers. The Funding for Lending scheme hasn’t quite generated the slew of keen rates and higher LTV products that was envisaged, but nevertheless a handful […]

Life begins at…

By Fiona Holmes, proposition communications manager Having reached a certain age (it’s the new 40 by the way), I’m having to come to terms with the fact that my peers and I aren’t as immune from illness or death as we’d like to think. That’s the problem with 30 being the new 20 and 40 […]


News and expert analysis straight to your inbox

Sign up