Lib Dems £2m mansion tax
The Liberal Democrats have decided to make changes to their controversial plans to impose a "mansion tax"


The Liberal Democrats have made changes to their controversial plans to introduce a tax on mansions, or properties worth over £1 million. Revised plans include doubling the rate from 0.5% to 1% and raising the barrier from £1 million properties to those valued at over £2 million.
Critics are describing it as a damage limitation exercise.
Economics spokesman Vince Cable caused uproar, not least among colleagues he failed to consult properly, when he announced the 0.5% levy on all £1 million-plus homes in September.
Party leader Nick Clegg responded by saying the value threshold would be raised to £2 million-plus - taking up to 180,000 homes out of the equation. The remaining 70-80,000 properties will be left with a 1% annual levy on the value, which is calculated to increase the income from the measure by nearly half to £1.7 billion.
According to party figures, the average price of all the properties which would now face the bill for the income tax cuts is £4.4 million.
Under the plans, to be detailed at a London event, the property levy would help pay to take around four million low-paid workers and pensioners out of paying income tax altogether by raising the income tax threshold to £10,000 - also meaning a £700 cut for most workers.
Exquisite houses, the beauty of Nature, and how to get the most from your life, straight to your inbox.
-
Tim Burton is selling the house he shared with Helena Bonham-Carter, a sublime home on the Thames that comes with three private islands
Mill House in Sutton Courtenay, Oxfordshire, might just be the perfect English country home.
By Rosie Paterson Published
-
Puffins and shearwaters, skuas and terns, gannets and gulls and guillemots and wings, these are a few of our favourite things (seabirds)
From a heroic long-distance swimmer to a producer of spectacularly eerie sound effects, the seabirds seen swooping and diving over British waters have all manner of singular skills.
By John Lewis-Stempel Published