Will A ‘Mansion Tax’ Hitting Southport Residents Be Introduced In The March Budget?

It has been widely reported in the national press that in its quest to find the extra funding necessary for enhancements to public services (policing, education, social care…..), owners of more expensive properties may be hit by a ‘mansion tax’ in the forthcoming budget. This would certainly affect home owners in the Birkdale area with many properties currently on the market for over £1 million will fall into this bracket.

It was in 1991 that work began on the creating and placing properties in Council Tax Bands that are still used today. Government officials drove up and down streets estimating house values. Estate agents were also used to give a rough idea of the price of homes. In 1993 these property price estimates were then put into bands. For England and Scotland the bands are A to H. If you own a property in England that sold for less than £40,000 in April 1991, it is band A. Most properties are in bands D and E – valued at the time between £68,000 and £120,000. The top band, H, is for homes valued at more than £320,000. The leaked notion of a mansion tax will see a new top band introduced,

This idea being considered, according to the Sunday Telegraph, is an added Council Tax Band for even more expensive properties than those currently fitting in the H band. Raising revenue from better-off homeowners is believed to have been discussed at the highest levels in the Treasury.

There are rumours that the new Council Tax Band would hit homes that are valued at one million pounds plus. However, there is an argument that whilst these home owners may be asset rich they may not have the funds to pay the increase it Council Tax. Decisions will be made before the next budget in March 2020.