But they'd have to sell it. Someone who bought their house decades ago (so it was cheap when they bought it but very expensive now), but were retired and living on a pension for example. It's one thing to ask people already moving to pay a cut to the government. They can afford it; if they can't they may have to move somewhere cheaper. If lots of people can't afford prices then prices fall, the market adjusts. But someone just living in their house should not be forced to move out due to tax.tufty wrote:They have a house. If you see where I'm coming from.pogo wrote:A mansion tax though would hit many people unable to pay it, as they're in a house which has appreciated in value but they have no other assets
There are other problems too: many houses are bought not by people but by firms and trusts, for tax reasons. Others are owned by people not resident here. It can be hard to collect tax in such cases. The beneficial owners might be out of reach or unknown. The higher the value of the property the more likely this is. In particular the top end of the London market is dominated by foreign buyers. It could be a large proportion of any mansion tax will be uncollectible.
edit: and a perhaps even bigger problem is how do you value houses? It's trivial to do when they're sold, but highly contentious at other times, so much so that for the much smaller amount collected as council tax the 'rateable values' of houses haven't been updated in decades. It would be easy to bring them up to date but governments (local and national) fear a backlash from those having to pay more. It would be many times worse, with many going to court to fight valuations, for a much higher mansion tax.



