'Mansion Tax is misconceived', says Perrins

24th September 2014

Mansion Tax is misconceived

"The idea of  a Mansion Tax is misconceived. Yes we need fairer, smarter taxation of property and the revenues could be used to support public services. But imposing a Mansion Tax on London does not make sense. It will reduce house-building and limit growth. It is also a tax on aspiration.  

If you want proof, just look at the experience of France. Wealth taxes drive away investment and talent - most other countries have abandoned them for this very reason. In France, they led to capital outflows of £172bn and reduced GDP by 0.2% annually.

The way to grow our economy is to make it competitive and open. Don't turn property into a liability and penalise the many Londoners who are asset rich but cash poor.  Instead of a Mansion Tax, we should reform Council Tax. Add 2 bands to Council Tax (an I and a J) and apply these from the point at which a home is next sold. That would be fair on the people of London and give us a much better chance of solving the housing crisis.

Rob Perrins, Managing Director, the Berkeley Group"

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