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With the Government's “mansion tax” due to come into effect in 2028, now could be a good time for older homeowners to think about downsizing - even if they don't have a property worth more than £2million.

- Edited by DEBORAH STONE

Mansion tax will involve a £2,500 annual charge on homes valued at £2m to £2.5m, with incremental rises up to £7,500 for properties worth £5m or more.

Although most people will never be affected by this tax, many living in London and the South East could be affected, especially if property prices continue to rise.

By 2028 more homeowners could find themselves edging into the £2m bracket - particularly older people who bought their homes after the early 1990s property crash.

It's also worth remembering that only a few months ago an annual property tax on homes worth more than £500,000 was being considered, and although it wasn't introduced in last week's Budget that doesn’t mean more taxes won't appear further down the line.