The Chancellor has set out plans to clamp down on the use of tax loopholes and reliefs as part of a raft of measures targeting the wealthy.
Dubbed a ‘tycoon tax' in the run up to today's Budget, George Osborne's plans will see a 25% cap on income tax reliefs for anyone claiming more than £50,000.
Describing tax evasion and aggressive tax avoidance as "morally repugnant", he also committed the government to introducing a general anti-avoidance rule, which will be consulted on and introduced in next year's Finance Bill.
Meanwhile, in a nod to the Liberal Democrat idea of a ‘mansion tax', Osborne proposed a new 7% stamp duty rate on properties above £2m, to come into effect from midnight.
At present, the highest stamp duty rate is 5%, on sales of properties above £1m.
He also detailed plans to clamp down on stamp duty avoidance by using companies to buy expensive properties.
The headline measure will be a 15% stamp duty rate on properties worth over £2m "within corporate envelopes".
"If you buy a property in Britain that is used for residential purposes, then we will expect stamp duty to be paid," he said. "That is the clear intention of Parliament."
In addition to this, the government will consult on the introduction of a large annual charge on £2m residential properties which are already contained in corporate envelopes.
To ensure wealthy non-residents are caught by the changes, it will also introduce capital gains tax on residential property held in overseas envelopes.
The announced measures could help to make up for the cost to the Treasury of the reduction of the 50% rate of income tax to 45% on earnings above £150,000, which will come into effect next year.
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