If I convert my basement into a separate flat, could I avoid Labour's mansion tax?
05-04-2015
By Ross Clark for the Daily Mail
I am worried about Labour’s mansion tax because my house has been valued at £2million. Could I avoid the tax by converting the basement into a separate flat? I am retired and couldn’t afford the tax.
Property expert Ross Clark replies: If the conversion of the basement resulted in the value of the residual house falling below £2 million, yes, you would avoid the tax.
But it would have to function as a separate home and have its own front door.
Concern: 'I am worried about Labour’s mansion tax because my house has been valued at £2 million. Could I avoid the tax by converting the basement into a separate flat? I am retired and couldn’t afford the tax', says one reader
You would then be liable to pay two sets of council tax. You might also have to pay capital gains tax on the basement flat if you later came to sell it.
But you will only pay mansion tax if the Labour Party wins the election.
The bath, sinks and toilets in my house are all draining slowly, suggesting that an outlet pipe somewhere may be blocked. My neighbour, too, has a similar problem. How do we find out where the blockage is and whose responsibility it is?
Property expert Ross Clark replies: If your neighbour has the same problem, it could be a shared drain that is at fault. If so, then it will be the responsibility of your local water company. You should contact the company and ask it to investigate.
.