The so-called “wealth tax” would hit many middle income earners as well as pensioners but in recent weeks has been suggested by Labour leader Sir Keir Starmer and his shadow Chancellor Anneliese Dodds.
New analysis by the Conservative Research Department has looked at what the impact of a wealth tax would have on individuals based on the model of the one used in Norway which is one of the few to have the extra levy.
Currently more than 500,000 Norwegians pay a 0.85 per cent charge on their assets every year above the value of around £126,000.
The value of their homes and savings as well as other assets such as cars and furniture are used when calculating how much they have to pay.
UK tax experts like Paul Falvey, a tax partner at accountancy and business advisory firm BDO, have concluded that “a UK wealth tax would probably take account of homes”.
According to the Conservative Research Department, if the same type of system was applied in the UK, at least 6 million could be forced to pay.
On average, Norwegians face a bill of around £2,500 – and that is on top of other taxes like income tax and VAT – Brits could see something similar under Labour.
Tory chairwoman Amanda Milling said: “Sir Keir Starmer has admitted a tax raid on homes and savings has ‘got to be’ something ‘we look at.
“This new analysis reveals just how much hardworking people could be hit by Labour’s plans.
“Labour need to be honest about what they’re calling for, rather than just saying what they think people want to hear without giving any details.”
The concerns about the tax grab proposals follow recent interviews given by Sir Keir and Ms Dodds.
The two have highlighted their demands that Boris Johnson considers imposing the tax in recent interviews.
Speaking to LBC on July 6, Sir Keir said: “We are saying to the government, look at the idea of a wealth tax, we certainly support the principle that those with the broadest shoulders should bear the greatest burden, but at this stage four years before an election, I’m not going to start setting out tax.”
In another interview, Ms Dodds said: “I think the government does need to look at this area, I don’t think we’re in a fair situation.
“Of course for the very, very best-off people quite a bit of their money coming in is derived from wealth. I think we do need to have that new settlement and actually much of the opinion data has indicated that has a lot of support among the UK population as well.”’
Labour have not formally responded to allegations but a source close to the leadership insisted: “We are not proposing a wealth tax, the shadow Chancellor made that clear this week.
“We just argue that the government should look at these options with the resources in the civil service that they have available.”
The Labour source added: “It’s baffling. Labour has not proposed this or anything like it and has no plans to.”