Mansions and Tax
The Labour party is proposing a Mansion Tax, an idea which was mooted by the Lib Dems in 2010. An annual payment would be made in for houses worth over £2million. Making this work will be fraught with problems.
What interests me most is the opposition which seems to be coming from within the Labour party. This is because many MPs actually own houses worth more than the threshold. There is an age old conflict within the legislature over tax. When Trusts first arose the Crown tried to curtail them by legislation. The judges were however wealthy lawyers who liked Trusts. Whatever statute tried to achieve was undone in the chancery courts.
The government is now trying to control aggressive tax avoidance. One suspects that the Cameron and Osbourne families have occasionally indulged in complex tax planning. I doubt that at heart the Conservative Party is overly concerned about tax avoidance, any more than labour members want the Mansion Tax.
Gerry Field, Managing Partner