🏡 Big Changes Ahead for Property Tax in the UK? Here’s What You Need to Know

If you’ve been keeping an eye on the news (or just love a good property chat like we do), you might’ve heard whispers about some major changes coming to how property is taxed in the UK.

While nothing is confirmed yet, there’s been a leaked proposal that could scrap Stamp Duty, overhaul Council Tax, and even shake up Capital Gains Tax on higher-value homes. Let’s break it down in simple terms—and then we’d love to know what you think.

🚪 Goodbye Stamp Duty, Hello Seller’s Tax?

The big one: reports suggest that Stamp Duty Land Tax (SDLT)—you know, that chunky tax buyers pay when they purchase a home—could be replaced with a new “national property tax”.

🔍 What’s the idea?

• Instead of the buyer paying stamp duty, it would now be the seller (if their home is worth over £500,000).

• This would only affect around 1 in 5 sellers, especially those in pricier areas like London or the South East.

• Early figures suggest sellers might pay between 0.5% and 0.8% of their property’s value—only if they sell.

💬 Why are they thinking about this?

• It could help first-time buyers get on the ladder.

• It might make moving home (or downsizing) less financially painful.

• But… some worry sellers will just bump up asking prices, or worse—not move at all.

🧾 Council Tax Might Finally Be Updated (Yep, It’s Still Based on 1991 Values 😬)

Council Tax is loooong overdue a refresh. Right now, it’s based on what your home was worth in 1991 (seriously). So someone in a million-pound flat in London might pay less than a family in a modest three-bed in the Midlands.

🔄 What could change?

• A more modern, fairer local tax, based on today’s property values.

• Some reports say bills could rise by up to £380 per year in certain areas.

• There’s also talk of councils being allowed to increase Council Tax by up to 5% a year for three years to help fund struggling local services.

😕 Of course, that’s raised eyebrows. Homeowners in more rural or suburban areas might feel they’re being hit harder—especially if services aren’t improving at the same pace.

💰 And What About Capital Gains Tax?

This one’s not front page news yet, but there’s chatter about possibly removing the CGT exemption on very high-value homes (say £1.5m+).

That means people selling luxury homes might have to pay tax on their gains, even if it’s their main residence. The idea is to rebalance wealth and bring in more revenue—but it’s understandably controversial.

👀 So, What Does All This Mean for You?

Well, that depends on where you live, how much your home is worth, and whether you're planning to move in the near future.

But here’s the short version:

💬 What Do You Think?

Is it fair to shift tax to sellers? Should Council Tax be rebalanced? Will this help or hurt the market?

We’d love to hear your take.

👉 Drop your thoughts in the comments on our @movewithmackay Instagram/Facebook — we’re having some great chats over there with other local homeowners and property fans.

Let’s see where this all goes…

Written by the Adam Mackay 
Helping homeowners and movers across Hertfordshire, Essex, and Cambridgeshire stay informed and ahead of the curve.