With just over a week to go until the UK votes in the next general election, businesses have given their views on one of the most controversial proposals in the campaign – for a “Mansion Tax” on high value properties.
In a recent poll of more than 500 London business leaders carried out by ComRes for London Chamber of Commerce and Industry (LCCI):
- More than half of London business leaders (52%) are opposed to proposals for a Mansion Tax on properties valued above £2 million
- A majority of London business leaders support proposals for the reform of the current Council Tax system to increase tax yield on higher end properties (56%), while 34% say they oppose this
Colin Stanbridge, Chief Executive of London Chamber of Commerce and Industry, said:
“The introduction of a Mansion Tax could be resolutely bad for London, it would create uncertainty among investors, potentially damaging investment potential, and adds another layer of complexity to an already cumbersome domestic property tax system.
“The effects of an additional tax on properties over £2million would be felt most acutely in London, where the property market is most buoyant. London businesses agree – in our most recent polling at the start of this year, more than half of business leaders said they would oppose the introduction of a Mansion Tax.
“We, and London businesses as a whole, agree with the proposals put forward by the London Finance Commission, which could see additional Council Tax bands added to the existing system. This would be a much more proportionate response, and a system which would be far easier to implement and maintain.”
Source: London Chamber of Commerce