Savills: Mansion tax inefficient

A MANSION tax would be “complex and inefficient” and could undermine London’s position as a leading business location, according to research director of Savills, Lucian Cook.

Cook says that a mansion tax of one per cent of value over £2m would yield just £1bn, but would unfairly target the income poor, equity rich: “It would penalise cash-poor long-term owners of properties that pass the threshold by dint of house price inflation.”

He also said it would “distort market dynamics” and that the UK already has the highest property tax take of any OECD country, at 4.2 per cent of GDP.