Overview

• The proposal under examination would charge owner‑occupiers a centrally set, value‑based levy when they sell properties above £500,000, without replacing the higher stamp duty surcharge on second homes.
• Treasury officials are drawing on Onward’s Tim Leunig blueprint, which suggests rates designed to raise about the same as last year’s £11.6bn in stamp duty while providing a steadier revenue stream.
• Parallel work is assessing a shift to a local property tax to replace council tax in the medium term, a complex reform viewed as taking longer and likely requiring a second Labour term.
• Regional effects are a flashpoint, with analysis showing roughly half of sales over £500,000 occur in London and a further 26% in the South East, raising concerns about disproportionate impacts.
• The government has not made a decision; a Treasury spokesperson stressed a focus on growth and keeping taxes for working people low, as critics warn of market distortions and the opposition brands the idea a tax grab.