Vince Cable revealed the proposal for the new tax.
22 September 2009
Homeowners with debt management plans may be concerned about the prospect of more financial pressure in after the Liberal Democrats suggested a property tax be introduced.
Treasury spokesman Vince Cable suggested a 0.5 per cent levy be applied to help lift workers on lower pay out of taxation.
However, the proposed charge would only apply to those with houses worth in excess of £1 million.
Commenting, Douglas & Gordon director Ed Mead said the move could impact mortgage holders in the more expensive sector of the industry.
"My initial instinctive reaction as an estate agent is that [the plans are] going to have a fairly serious negative effect on the top-end of the market in London," he said.
The expert added that people would look for a way around the charge and stated that Brits already face enough taxes on their earnings.
Mr Mead conceded it is a "pretty clever" idea in terms of raising cash, but inferred it is unfairly targeting certain people.
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