Rachel Reeves’s proposed £600 million “mansion tax” could hit nearly a third of apartments in England, according to new analysis.
Around 100,000 apartments may face the redundant charge, which substantially targets parcels in the upper three council duty bands.
What Is the Mansion Tax and Who Will Be Affected?
The so-called manse duty, officially aimed at high-value parcels, is set to impact two main types of apartments: ultramodern apartments in recently erected halls with luxurious amenities, and larger three four-bedroom apartments in converted, aged structures.
Estate agency Hamptons conducted the analysis, showing that the levy is not just for traditional “mansions” but also for high-end flats in city centres.
Tom Bill, head of UK residential research at Knight Frank, said: “While the term ‘mansion tax’ resonates with Labour backbenchers, many homes may not align with this definition in reality.”
In other words, owners of some expensive flats may be surprised to find themselves liable for this new property surcharge.
Key Details of the Mansion Tax
- Properties Affected: Around 300,000 homes across England.
- Council Tax Bands: F, G, and H.
- Surcharge Threshold: Homes selling for £1.5 million or more.
- Current Valuation Basis: Property values are still based on 1991 figures.
Revaluation Plans to Reflect Modern Market Values
To make the duty fairer, the government plans to revalue the 2.4 million homes within the highest three council duty bands.
This property revaluation will ensure that the manse tax reflects current request prices, rather than decades-old valuations, and that high-value homeowners contribute proportionately.
What does this mean for Homeowners?
For possessors of luxury apartments or large apartments in desirable areas, this could mean a substantial increase in periodic costs when the cargo is applied.
With the Chancellor anticipated to unveil the details in the coming Budget, high-value property owners are being advised to stay informed about the changes.
