Chancellor George Osborne’s Autumn Statement leaves the property sector well alone – for now. He confirmed that next week he will announce details of legislation to stop the richest avoiding tax, which is likely to include an annual charge on property worth more than £2m and held in a company structure, as well as a change to capital gains tax.
But today he rejected calls for a mansion tax – an annual charge on properties worth more than £2m – and promised ‘no new property taxes’. He said a property tax would be ‘intrusive’, ‘expensive to levy’ and raise little in the way of revenue. He also ruled out increasing the amount of council tax paid on more expensive properties or increasing stamp duty on purchases costing more than £1m.
For now, property owners can breathe a sigh of relief. But all eyes will be on the Chancellor next Tuesday when he unveils what he has in store for property in the Finance Bill.