Overview

• Chancellor Rachel Reeves has asked officials to model ending the capital gains tax exemption on primary residences, with reported illustrative rates of 24% for higher-rate taxpayers and 18% for basic-rate taxpayers.
• A scenario under review sets a possible threshold near £1.5 million, with analysis suggesting around 120,000 higher-rate homeowners could be affected if adopted.
• Separate work is examining a stamp duty redesign, including a proportional or sales-linked levy that could charge sellers of homes valued above roughly £500,000 rather than buyers.
• Property industry figures warn the options could deter downsizing by asset‑rich, income‑poor pensioners, concentrate burdens in London and the South East, and reduce market liquidity and transactions.
• The Treasury says growth remains its priority and stresses that decisions have not been made, with proposals being assessed ahead of the autumn Budget after stamp duty raised about £11.6bn in 2023–24.