Labour's Mansion Tax would cost an average of £15,000 a year. In more than 90% of cases it would be coming from the pockets of those in London and the south East.

The Mansion Tax plans proposed by Labour could create more than £1.6bn in extra tax revenue per year, but almost 96 per cent of this burden would be placed on homeowners in London and the South East, according to Zoopla.

After conducting analysis of all properties in Britain currently valued at more than £2m, Zoopla found that in excess of 108,000 households would be liable for the annual levy, at an average of £15,000 each.

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Properties in London and the South East would account for the vast majority (95.9 per cent) of the additional £1.63bn cost with the rest of the country contributing just 4.1 per cent (£66m) of the total contribution.

Lawrence Hall of Zoopla, said: “The introduction of a ‘mansion tax’ would disproportionately penalise homeowners in London and the South East who are already responsible for the vast majority of property tax take in the UK. With more than 100,000 homes to be affected by this new levy, it is somewhat misleading to call it a ‘mansion tax’ when many three bed family homes in London and the South East would find themselves caught by it.”

Mansion Tax: Regional Breakdown

Region # homes worth >£2m Avg. value of £2m+ homes Avg. annual tax per home Overall tax per region % of UK Total
London 85,461 £3,679,851 £16,799 £1,435,617,705 88.2%
South East England 14,261 £2,876,355 £8,764 £124,977,022 7.7%
East of England 3,718 £2,722,831 £7,228 £26,874,839 1.7%
South West England 2,079 £2,815,471 £8,155 £16,953,652 1.0%
North West England 881 £2,751,724 £7,517 £6,622,687 0.4%
Scotland 895 £2,618,621 £6,186 £5,536,659 0.3%
West Midlands 435 £2,891,595 £8,916 £3,878,437 0.2%
East Midlands 261 £2,950,277 £9,503 £2,480,222 0.2%
North East England 231 £2,934,909 £9,349 £2,159,639 0.1%
Yorkshire and The Humber 168 £2,855,904 £8,559 £1,437,919 0.1%
Wales 87 £2,615,512 £6,155 £535,495 0.0%
Total 108,477 £3,499,926 £14,999 £1,627,074,277 100% 

Source: Zoopla (September 2014)

Mansion Tax: Top Ten Payers by Borough

Borough # homes worth >£2m Avg. value of £2m+ homes Avg. annual tax per home Overall tax per borough % of UK Total
Kensington and Chelsea 22,454 £4,504,816 £25,048 £562,431,322 34.6%
Westminster 18,596 £3,953,315 £19,533 £363,238,481 22.3%
Camden 7,996 £3,631,394 £16,314 £130,446,253 8.0%
Hammersmith and Fulham 7,098 £3,092,653 £10,927 £77,556,477 4.8%
Wandsworth 4,920 £2,998,769 £9,988 £49,139,423 3.0%
Barnet 3,386 £3,413,350 £14,134 £47,856,032 2.9%
Richmond upon Thames 4,221 £2,972,671 £9,727 £41,056,453 2.5%
Merton 2,383 £3,462,678 £14,627 £34,855,606 2.1%
Haringey 1,830 £3,575,127 £15,751 £28,824,829 1.8%
Islington 2,730 £2,791,979 £7,920 £21,621,027 1.3%

Source: Zoopla (September 2014)

Some information contained herein may have changed since it was first published. Zoopla strongly advises you to seek current legal and/or financial advice from a qualified professional.

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