Why a mansion tax is wrong for Britain

There’s a huge amount of confusion surrounding the proposals for a ‘mansion tax’ and, more generally, taxation at the top end of the housing market. Old and novel arguments are rolled out by its proponents: that it is easier to tax wealth that can’t be taken offshore, or that the current level of taxation on high value property (generally perceived to be low) isn’t fair on first time buyers struggling to raise a deposit at the other end of the market. In reality, there are three main reasons why a mansion tax is unwarranted and potentially counter-productive, which I discuss in more detail in a Centre for Policy Studies report released today.
 
1. It would unfairly penalise the income poor, equity rich. Arguments that such individuals are few and far between are flawed: our analysis shows that 31 per cent of London properties worth over £2 million have been in the same ownership for over 10 years, 15 per cent over 20 years.