The UK’s wealthiest property owners would face paying the controversial mansion tax from “day one” of a Labour Government, shadow chancellor Ed Balls has said.
In an interview with The Independent, Balls reveals Labour has already asked the Treasury to start preparing for the new levy ahead of the general election next year.
The levy would be applied in the 2015/16 financial year, despite the period beginning before the election takes place in May.
The shadow chancellor plans to raise around £1.2bn a year through an additional levy on properties worth £2m and above. Homes priced between £2m and £3m would pay an extra £3,000 a year, while more expensive properties could face an annual levy of up to £10,000.
Additional revenues raised through the mansion tax will be directed to the NHS.
Balls says: “A charge is paid in that [financial] year on the valuation on a date in that year. We will be clear what we are going to do in our manifesto. No one will have any doubt about our intentions.
“Saving the NHS will be at the heart of our first Budget. I would like to see that revenue coming in in the first year of a Labour government, before the end of the financial year.
“I am sure the Treasury will be gearing up to make sure we can deliver this.”
In October, brokers slammed the proposals as “ill thought out” and “bonkers”, while calling for a review of the council tax system instead of implementing a mansion tax.