Business secretary Vince Cable looks set to side with the Liberal Democrat leader Nick Clegg over the issue of mansion tax.The proposal of the mansion tax was brought by the Lib Dems in order to balance out the impact of the Coalition's tax changes. If approved, it would introduce a one per cent annual levy on all homes worth above £1 million. Mr Clegg has already affirmed his plans to continue to fight for the tax, which due to its focus, could well be a particular issue to those already paying 50 per cent tax on their income. However, Cable is expected to argue that the tax will have a significant effect on foreigners who own property in the UK. Speaking to the Sunday Telegraph, he remarked that people from abroad who purchase expensive properties in Britain but only pay £1,000 a year is “perverse”. “A mansion tax is still very much on the agenda – it is a very good idea,” he added.The same paper recently reported that around one in 20 homes in certain desirable areas of London are owned offshore. This means that they d not need to pay stamp duty and largely avoid other taxes that contribute to the UK economy.
http://www.50percenttax.co.uk/index/2012/1/24/cable-joins-clegg-on-mansion-tax-debate.html
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