Those owning properties worth more than £3million will be hit with tax bills starting from £10,000 under a Labour government, according to research by the Institute for Fiscal Studies (IFS). Under the party’s mansion tax plans, homes worth between £2m and £3m would attract around £3,000 in liabilities, but properties worth above £3m will take a far greater hit in order to make up the £1.2bn Labour intends to raise for its NHS policy.

Shadow chancellor, Ed Balls, added that those earning below £42,000 but living in high-value homes would be able to defer payment until the property changed hands. He confirmed that overseas investors, however, would receive rather more substantial bills. The Labour Party is yet to announce further mansion tax bands, but according to IFS economist, James Browne, a sizeable step up is expected above £3m in order to reach the £1.2bn earmarked by the party.

According to research conducted by property website Zoopla in April, Londoners would account for the bulk of receipts, with two-thirds coming from just three boroughs. More than a third (36%) would be sourced in Kensington & Chelsea, which boasts 18,600 properties worth more than £2m. The boroughs of Camden, Kensington & Chelsea and Westminster would account for a staggering 67.2% of the total yield.