Homes worth £1.5m set to escape mansion tax as Chancellor eyes London offices for revenue

Chancellor John Healey has ruled out cutting the mansion tax threshold from £2m to £1.5m, reportedly on the grounds that revising the terms before the levy takes effect in April 2028 would undermine public confidence in the policy. As a result, roughly 134,000 properties will fall within the scope of the annual surcharge rather than the 271,000 that a lower threshold would have captured. From 2028, homes above £2m will still face annual charges of between £2,500 and £7,500, with two thirds of eligible properties located in London.

Healey is still reportedly eyeing a £1bn raid on London office business rates, targeting commercial buildings worth more than £500,000 in rateable value, drawing warnings it is 'an attack on growth policy'.

Tory leader Kemi Badenoch has vowed to scrap the mansion tax entirely and abolish death duties on family homes, putting home ownership at the heart of the Conservative offer ahead of the Budget on October 28.