About 150,000 homeowners would be hit by Labour’s proposed “mansion tax”, as experts warn rumours about budget tax rises are already hitting the housing market. The Treasury is reportedly considering taxing owners of higher-value properties in the November 26 budget as it aims to fill a multibillion-pound hole in the public finances. Among the proposals said to be under consideration is an annual 1 per cent tax on the portion of a property’s value above £2 million. On a £2.5 million property the tax would cost £5,000 a year. The chancellor is also considering ending an exemption from capital gains tax that homeowners enjoy when they sell their main residence.
