
It turns out that Reeves’s levy on homes worth more than £2 million is already costing hundreds of millions before a penny of the new tax has even been collected. There shouldn’t be any surprise about that. Wealth taxes, which is what the mansion tax amounts to, always backfire. This is just the latest example. Introducing an extra tax on homes worth more than £2 million, with a sliding scale up to £5 million, is turning out to be a lot more complex than expected for the Treasury. It has been reported that Treasury officials estimate that, in the three years between Reeves announcin the levy and it coming into effect in April 2028, there will be a £230 million fall in stamp duty and inheritance tax revenues as values drop to around the threshold at which the tax is levied. Identifying and valuing all the homes that will have to pay the new tax is likely to cost another £150 million. Add the two figures together, and the mansion tax will end up costing the government £380 million before it raises any cash at all. ✍️ Matthew Lynn Article | spectator.com/article/reeves…


















