Lib Dems set out plans for tax on £1m properties
Vince Cable set out the measures in his speech on Monday
Also In The News
|
By Tom Powell. |  |
Monday, 21, Sep 2009 05:55
By inthenews.co.uk staff.
The Liberal Democrats have unveiled plans for a tax on the owners of properties valued at over £1 million.
Treasury spokesman Vince Cable officially unveiled the measures during his speech to delegates at the party's annual conference in Bournemouth.
The plans will see a 0.5 per cent annual levy on properties that exceed £1 million in value, therefore if a home is worth £1.5 million, the tax would equate to £500,000 - an annual payment of £2,500.
During his speech, Mr Cable criticised the current "unfair" council tax system that sees millionaires paying the same amount as those in the lowest bracket.
"We have seen the super-rich pouring their money not into job-creating businesses but into acquiring mansions," he said.
"And remember too that under our unfair council tax Messrs Mittal and Roman Abramovich in their £30 million palaces pay the same as a band H family home though their properties may be worth 40 or 50 times as much. That small levy alone would lift 300,000 low paid workers and pensioners out of tax."
The Lib Dem treasury spokesman also said under his party's plans to increase the lower income tax threshold to £10,000, four million people would no longer be required to pay income tax.
Prior to the speech, however, some delegates had voiced their displeasure at the proposals for taxing the owners of properties worth more than £1 million.
When asked how the scheme would affect people in London and South East, where the majority of the properties are, the party appeared non-plussed and seemed unable to able say how many houses there were in the country valued at over £1million.
"This is one of a number of proposals by the party, it does not change our plans in income tax, it is instead intended to raise money from those who can most afford to pay," a party insider told inthenews.co.uk.
The party, however, was unable to offer any assurances into how the houses would be valued.