When it emerged last week that the chancellor was considering scrapping stamp duty, many will have started celebrating.
However, the jubilation was short-lived as a host of alternative property tax suggestions began to surface. The Treasury is said to be contemplating a shake-up as it looks to raise billions of pounds in the autumn budget.
Stamp duty brought in £13.8 billion over the past tax year, while capital gains tax (CGT), which is charged on the sale of second homes, shares and art, raised £13 billion. Rachel Reeves, the chancellor, is now understood to be considering charging CGT on the sale of high-value homes, with the limit being mooted at £1.5 million. At the moment you do not pay CGT when you sell your main home, although it is applied to sales of second or additional properties.
Critics have long warned that high stamp duty charges stifle the housing market, but have now said that charging people when they sell their main home could cause even more damage.
Is there really a better way to tax property than the present system; one that is fair and effective? We look at how the rest of the world does it.
