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Chancellor's 1% Levy Proposal Hits Wealthy Pensioners Hard

10/28/2025

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Summary

Story summary

Chancellor Rachel Reeves is considering a 1% levy on homes over £2 million that could affect pensioners.
Experts warn many older homeowners are asset rich but cash poor and may struggle to pay the tax.
The proposal would affect about 140,000 homes and is concentrated in London and the South East.
Critics, including former Bank of England governor Mervyn King, say the levy could complicate the tax system.

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Story summary

Chancellor Rachel Reeves is considering a 1% levy on homes over £2 million that could affect pensioners.
Experts warn many older homeowners are asset rich but cash poor and may struggle to pay the tax.
The proposal would affect about 140,000 homes and is concentrated in London and the South East.
Critics, including former Bank of England governor Mervyn King, say the levy could complicate the tax system.