Stamp duty may be substituted with a new property tax on residences valued over £500,000, as per potential plans being reviewed by the Treasury. If implemented, this fresh tax would be levied on homeowners upon selling their property, with the fee contingent on the property’s worth and a rate decided by the government.
The proposed system would not supplant stamp duty on second homes. The Guardian indicates that a final verdict is pending on the progression of these proposals. Any declarations by Chancellor Rachel Reeves would likely occur during a fiscal event like the Budget.
Currently, in England and Northern Ireland, buyers pay stamp duty for properties exceeding £125,000, with a £300,000 threshold for first-time buyers. A Treasury spokesperson emphasized the emphasis on economic growth to fortify public finances, citing planning reforms expected to boost the economy by £6.8 billion and reduce borrowing by £3.4 billion.
The commitment to maintaining low taxes for the working populace was highlighted, with reassurances from the last autumn’s budget preserving income tax rates. Stamp duty is referred to as the land and buildings transaction tax in Scotland and as transaction tax in Wales.