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.