US EditionTreasury ‘looking at’ new property taxes to replace stamp duty: Report
The UK government plans a new annual tax on homes over £500,000 to replace stamp duty, aiming to make moving house fairer and raise revenue amid rising property prices.
- Senior Treasury ministers are exploring a new national property tax on owner-occupied homes worth over £500,000 that could replace stamp duty.
- This initiative arises amid concerns that stamp duty is inefficient, expensive, and discourages housing mobility while property values have outpaced wages since 1997.
- The proposed levy would consist of a base rate of 0.54%, along with an additional 0.278% charge applied to the portion of a property's value exceeding £1 million, impacting about 20% of home sales and generating revenue similar to that of the current stamp duty.
- A Treasury spokesperson emphasized that growing the economy remains the priority, and officials stress that no final decisions have been made while impacts are carefully assessed.
- If implemented, the tax could reduce stamp duty-related market distortions but risks pushing prices above £500,000 higher, and replacing council tax would require more time and political support.
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79 Articles
Bereaved families could pay tax twice on inherited homes under property tax plan
Rachel Reeves is reportedly considering a shake up of the property tax system – a move that has the potential to leave some bereaved families paying two levies on the sale of an inherited home.The Chancellor is said to have asked Treasury officials to look at a new property tax on the sale of homes worth more than £500,000 as part of a possible overhaul of stamp duty and council tax.The national tax would be paid by the owner-occupier, not the b…
Telegraph & Argus
HMRC 'looking at' axing Council Tax and Stamp Duty for new tax on £500,000 homes
HMRC is reported to be ‘looking at’ new property taxes that could replace both Council Tax and Stamp Duty
Chancellor Rachel Reeves 'considers shake-up of stamp duty with new property tax' - The Mirror
The new levy would be paid by on houses worth more than £500,000 when sold, with the amount due determined by the value of the property and a rate set by the Government
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