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A mansion tax in next week’s Budget could stifle property markets and disproportionately harm homeowners in London, Manchester and Edinburgh, tax experts have warned.

Rachel Reeves is reportedly planning a mansion tax raid on high-value properties, as she takes a “smorgasbord” approach to the Budget after last week’s dramatic income tax U-turn .

The Chancellor has told Labour MPs to champion the coming mansion tax as a measure hitting wealthier people the hardest, and sparing working people.

While Reeves could pull various levers to produce a tax on mansions, City AM reported last week that she is favouring a council tax surcharge on expensive homes.

Houses over a certain value, such as £1.5m, would face an additional 1 per

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