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Mansion tax
A mansion tax is a common name for an annual property tax on high value homes, although the term itself is widely regarded as a misnomer.
Until the Budget of Autumn 2025, the tax was only a proposal in the United Kingdom, but will now come into effect in April 2028 on properties worth over £2 million.
Many US states levy a surcharge on the highest-value homes or have a progressive taxation in their real estate transfer tax system, sometimes referred to as “mansion taxes.”
In the United Kingdom, the concept of a mansion tax is widely attributed to Vince Cable. In its original form, proposed in 2009, Cable suggested that all properties valued at over £1 million would be taxed annually. He raised the proposed threshold to £2 million in January 2012.
In an accommodation with Coalition partners, the proposal was modified and a 7% rate of Stamp Duty Land Tax was levied on house sales over £2 million, following George Osborne's 2012 budget. In contrast to an annual "mansion tax", this one-off tax is only paid when a property is bought.
Support for the original proposal re-emerged at the Liberal Democrat 2012 conference.
The motion called for "an annual mansion tax on the excess value of residential properties over £2 million as a first step towards wealth taxation designed to reduce inequality". It was passed in a vote of over 200 delegates, with two against.
Despite this, the Liberal Democrat's coalition government partner, the Conservatives, ruled out the introduction of a Mansion Tax; Chancellor of the Exchequer George Osborne said in October 2012: "We are not going to have a mansion tax, or a new tax that is a percentage value of people’s properties. Before the election they will call it a mansion tax, but people will wake up the day after the election and discover suddenly their more modest home has been labelled a mansion."
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Mansion tax
A mansion tax is a common name for an annual property tax on high value homes, although the term itself is widely regarded as a misnomer.
Until the Budget of Autumn 2025, the tax was only a proposal in the United Kingdom, but will now come into effect in April 2028 on properties worth over £2 million.
Many US states levy a surcharge on the highest-value homes or have a progressive taxation in their real estate transfer tax system, sometimes referred to as “mansion taxes.”
In the United Kingdom, the concept of a mansion tax is widely attributed to Vince Cable. In its original form, proposed in 2009, Cable suggested that all properties valued at over £1 million would be taxed annually. He raised the proposed threshold to £2 million in January 2012.
In an accommodation with Coalition partners, the proposal was modified and a 7% rate of Stamp Duty Land Tax was levied on house sales over £2 million, following George Osborne's 2012 budget. In contrast to an annual "mansion tax", this one-off tax is only paid when a property is bought.
Support for the original proposal re-emerged at the Liberal Democrat 2012 conference.
The motion called for "an annual mansion tax on the excess value of residential properties over £2 million as a first step towards wealth taxation designed to reduce inequality". It was passed in a vote of over 200 delegates, with two against.
Despite this, the Liberal Democrat's coalition government partner, the Conservatives, ruled out the introduction of a Mansion Tax; Chancellor of the Exchequer George Osborne said in October 2012: "We are not going to have a mansion tax, or a new tax that is a percentage value of people’s properties. Before the election they will call it a mansion tax, but people will wake up the day after the election and discover suddenly their more modest home has been labelled a mansion."