There has been much noise in recent weeks about a possible mansion tax on properties worth over £2m.
It’s easy to see why governments might eye up the UK’s property as a potential source of revenue. Home owners in prime central London in particular have benefited from continued rises in property prices. Politicians may feel there’s scope for the country as a whole to share in this growth which has been largely dependent on London’s attractiveness as a financial centre.
But would the UK remain so attractive if new taxes on wealth such as a mansion tax are imposed? Is it more likely we see high net worth individuals relocating elsewhere taking with them their income and potential tax revenues? These are considerations for economists and policy advisers but there are also...
