Nick Clegg signals property tax to fund scrapping of 50p rate
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Deputy prime minister Nick Clegg has revealed plans to tax high-end properties in order to fulfil the Government’s long-term aim of scrapping the 50p income tax rate.
Clegg (pictured) has told the Financial Times that the Government plans a new tax regime to target expensive homes, with possible measures including changes to the way council tax and Stamp Duty are structured.
He said: “A liberal tax system rewards work and enterprise and captures pollution and unearned wealth.”
But Clegg ruled out a resurrection of the Liberal Democrat plan for a 1 per cent ‘mansion tax’ on properties worth more than £2m.
In the Budget last week, Chancellor George Osborne said: “As well as reviewing revenues from the 50p tax rate, we will also be redoubling our efforts to find ways of ensuring that owners of high value property cannot avoid paying their share.”
The Chancellor also made reference to the top rate of tax being a temporary measure with reports suggesting he may scrap it in his 2013 Budget. The Office of Budget Responsibility has said there is growing evidence that people are going to great lengths to avoid paying the 50p rate.
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Readers' comments (5)
mark dampier | 28 Mar 2011 8:57 am
Where does he think 'unearned weatlh' comes from the fairy godmother, you need to earn and save it in the first place,God help us from clueless polticians.
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Colin Palmer | 28 Mar 2011 9:11 am
Perhaps there is still some 'fruit' on Gordon's money tree!
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Fraser Brydon | 28 Mar 2011 9:21 am
did someone not mention tax simplification, or is the penalty for scrapping the 50p rate is to pacify those who cannot get of their backside, want everything for nothing and are jealous of success. The same noises from the lazy brigade against those of us who work hard, pay our taxes and make a contribution to society!
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Bill Wells | 28 Mar 2011 9:39 am
The people who live in expensive homes, unless they are politicians, have generally paid far more income tax than people who live in more modest houses. Many also pay far more for the non-existent policing, the potholes in the road, the schools which their children don't use, the hospitals they don't use and the bin collections that rarely happen. But Clegg thinks they should pay more - twit!
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Michael Fallas | 28 Mar 2011 1:52 pm
Difficult to know what exactly he is planning but it does seem as though this is another his the Liberal ideas with little thought of the practicalities and implications behind them and indeed the taxes many have paid or may well pay on death, especially if the high value house is their only home.
One has to ask what does he call an "expensive home" as it largely depends on where you live rather than the size of the home?
Fair taxes Mr Clegg as your Government in the Queens speech promised “ My Government’s legislative programme will be based upon the principles of freedom, fairness and responsibility.”
That certainly does not apply to the Financial Services Industry that is for sure so why should we believe anything you say or do?
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