Homeowners with properties worth more than £500,000 could have to pay annual property taxes under radical plans to replace stamp duty.
The Treasury is reportedly considering a proportional property tax in the budget this autumn, according to The Guardian.
Rather than paying stamp duty (which ranges from 2 per cent on the purchase price between £125,000 and £250,000, through to 12 per cent on the portion of the price above £1.5 million) anyone buying a home worth more than £500,000 would face an annual tax.
For years there have been calls to overhaul stamp duty, which raised £13.8 billion for the Treasury in the 2024-25 tax year but has been criticised for putting homeowners off moving.
How would it work?
