View more on these topics

Nick Clegg signals property tax to fund scrapping of 50p rate

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.


News and expert analysis straight to your inbox

Sign up


There are 5 comments at the moment, we would love to hear your opinion too.

  1. 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.

  2. Perhaps there is still some ‘fruit’ on Gordon’s money tree!

  3. 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!

  4. 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 – twat!

  5. 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?

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm