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4h ago

Treasury Weighs Seller-Paid Levy on £500,000-Plus Home Sales

The review reflects a search for steadier property revenues within pledges to avoid increases to core pay‑packet taxes.

The Chancellor is said to be looking at ending the capital gains tax exemption for people selling their primary residence (Photo: Getty)
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Overview

  • HM Treasury is modelling a national property levy paid by sellers on home sales above about £500,000, according to new reports.
  • Under the option described, the charge would be due at sale and calibrated to property value, with stamp duty surcharges on second homes reportedly unchanged.
  • The Chancellor is also said to be examining whether to apply capital gains tax to very high‑value primary residences.
  • Tax advisers and campaign groups warn a CGT change could depress transactions and revenues, proposing alternatives such as land value taxes, proportional annual charges, higher levies on second homes, or comprehensive council tax reform.
  • The Treasury says it is prioritising economic growth and keeping income tax, employee national insurance and VAT rates unchanged, and any decisions are likely to come at a Budget with a longer‑term council tax replacement also under review.