Wealthy property owners are ‘rushing’ to avoid a Mansion Tax, which is strongly rumoured to be part of today’s Budget.
Around one in four high-end homeowners have moved their properties into a trust for their children, the Daily Telegraph reports.
And another 12% have also set up trusts for their grandchildren, according to a survey of 2,000 rich individuals by wealth management firm Saltus.
Surcharge applied
There is much speculation that Chancellor Rachel Reeves will introduce a Mansion Tax on properties worth £2million or more.
It would see 2.4 million properties in bands F, G and H revalued, with a surcharge applied to the top 300,000, adding £2,000 to the annual bill for affected households.
It is expected to hit London and the South East far more than other areas. According to the Treasury, it could raise around £600 million a year.
Front of mind
And Henrietta Grimston, Chartered Financial Planner at Saltus, said concerns about tax changes were “clearly front of mind for many high net worth families”.
She told the Telegraph that many of the wealthiest property owners were setting up trusts to “reduce potential tax liabilities”.
The Mansion Tax may not implemented until 2028 at the earliest when the revaluation is completed.
And people may be able to defer paying the new tax until they move house or after they die, according to the Telegraph.
Prime estate agents brace for tax ‘double whammy’