Reports indicate plans to replace stamp duty with an annual property tax for homes valued over £500,000. This new tax proposal aims to relieve the burden of one-time stamp duty charges and potentially boost housing market efficiency. Currently, stamp duty raises around £13.8 billion annually but has been criticized for hindering mobility among homeowners. The new proposal suggests specific rates based on property value, with an emphasis on not applying retrospectively, while maintaining existing surcharges on additional homes.
Stamp duty currently raises around £13.8 billion a year for the Treasury, but has long been criticised for discouraging people from moving.
Households would pay 0.54 per cent annually on the value above £500,000, while properties worth more than £1 million would pay 0.81 per cent.
Stamp duty raises transaction costs, preventing people from moving for new job opportunities and undermining growth. The way Britain taxes households is both impractical and unfair.
The new tax would not be applied retrospectively but only on properties bought after it was introduced.
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