‘I own a £2m farmhouse – Reeves’ mansion tax is nothing however punishment for being well-off’ | EUROtoday

Three a long time in the past, Christopher Broadbent purchased an previous farm employee’s two-bedroom cottage within the East Sussex countryside.

The founding father of a consultancy agency carried out a “Damascene conversion” of the home, doubling its measurement, and purchased 50 acres of farming land round it for a nature reserve and a glamping enterprise.

But now, along with his farmhouse and land considered value round £2m, the 75-year-old fears he and his spouse might be positioned in a “profoundly uncomfortable” place by a so-called mansion tax, anticipated to be introduced at Wednesday’s Budget.

“I’m not saying we couldn’t afford it,” stated the Labour voter, “but there would be a deep sense of unease and unfairness.”

Mr Broadbent, who plans to retire subsequent yr, already pays £3,600 a yr in council tax on the four-bedroom dwelling, which sits inside the prime three council tax bands (F, G and H). Being inside the high-end bands, underneath Rachel Reeves’ anticipated plan, it might be revalued to verify if the property meets a £2m threshold for the mansion tax.

The tax, as reported by TheTimeswould see the common “mansion” paying round £4,500 a yr, elevating as much as £500m for the Treasury.

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But there are fears the plan might affect the property market, and find yourself costing the federal government because of a discount in gross sales, which additionally raises cash by way of taxes.

The obvious transfer by Ms Reeves comes after she appeared to rule out placing up revenue tax, as she seeks to deal with a £20billion black gap in public funds.

Mr Broadbent described the transfer towards a mansion tax as “playground politics”, after a current YouGov survey confirmed most voters again a tax on costly properties.

He stated: “Politicians have to be careful with language because the phrase mansion tax has connotations which are wrong. It essentially means “smack the rich”.

“Not everybody lives in a mansion, but plenty of people live in a house that is worth more than whatever the threshold will be. It’s a blunt instrument, a kind of punishment, really. It’s politically motivated, not realistic, particularly if it isn’t going to raise much money.

“It’s crude and I don’t think it’s going to work very well. It would be far better, simply, to do something with income tax.”

The Times reported that some 100,000 properties could be impacted by the tax, a surcharge collected by way of council tax payments, which might have a number of completely different charges relying on the worth of the house.

The Office for Budget Responsibility, the fiscal watchdog, has reportedly urged the transfer might decelerate the housing market, notably in London.

Mr Broadbent stated he feared for households with massive mortgages in London, who he stated might see the worth of their dwelling fall on account of a drying up of the marketplace for high-value properties.

“It’s going to push some people into negative equity,” he stated. “You might be living there with your partner and two or three children, and they go to school and everyone’s doing a living, leading their normal lives and suddenly through no fault of your own, you’re having to pay a huge tax on your house, and you can’t afford it either.”

With the precise particulars of the proposal on mansion tax but to be introduced, it’s unsure if folks, similar to Mr Broadbent, whose land is assessed as agricultural, would be capable of declare agricultural aid on his property worth.

He added that he was already dealing with being “clobbered” by future rises in council tax and enterprise charges.

“I just don’t know [if we would come under mansion tax],” he stated. “It would probably be profoundly uncomfortable [for us].”

Asked why, if he was confronted with paying the tax, he couldn’t promote as much as enhance his monetary scenario, he replied: “How would you feel about being forced to do the same?”

He added: “Homes are hugely emotionally important and particularly if they are where you’ve spent your life trying to do something good like convert to nature in pursuit of net zero.

“It seems to me a form of politics of envy and punishment, and that’s not how we should be operating.”