Exclusive: Treasury examines options including tax on homes sold for more than £500,000 as well as overhaul of council tax
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The Treasury is considering a new tax on the sale of homes worth more than £500,000 as a step towards a radical overhaul of stamp duty and council tax, the Guardian has been told.
As Rachel Reeves prepares the ground for tax rises in this autumn’s budget, senior ministers have tasked officials to study how a new “proportional” property tax could be implemented and model its impact before reporting back to ministers, who have been briefed on the proposals.
Officials are initially examining a potential national property tax, which would replace stamp duty on owner-occupied homes, sources said. They are also studying whether, after the national tax, a local property tax could then replace council tax in the medium term in an effort to repair battered local authority finances.
