UK Treasury Weighs Lowering Mansion Tax Threshold to £1.5 Million

Britain's Labour government is weighing a plan to lower the threshold for its high-value property levy to £1.5 million ($2.01 million), down from the current £2 million, according to two government sources cited in a report on Friday.

The change would more than double the number of homes caught by the charge to roughly 271,000, based on present property values. Lowering the threshold is said to remain a live discussion inside the Treasury.

A Treasury spokesperson declined to be drawn on the matter, saying decisions on tax are for the Chancellor to set out at fiscal events rather than something to be commented on amid rumour, speculation or proposals.

The report lands as finance minister John Healey comes under pressure to raise billions of pounds in tax revenue in his first budget, to cover higher borrowing costs and fund Prime Minister Andy Burnham's plans for expanded social care and more defence spending.

Britain last year announced a new high-value council tax surcharge in England starting in 2028, carrying an annual charge of £2,500 for properties valued above £2 million, rising to £7,500 for those worth more than £5 million.

Healey, who is due to deliver his first budget on October 28, declined to comment on tax policy this month when asked about potential tax hikes following a speech in central England.