How would potential new property tax differ from stamp duty and council tax system? | Property

The government considers a new national property tax as the first step to a radical shake-up of voice load and council.

The discussions taking place at the treasury – revealed by the Guardian on Monday – Have already asked a lot of debate and often lead to an emissions in some quarters. We consider how the current system works and how it could change.

What, in simple terms are they considering?

Two things, essential.

First, stumps of the resources that initially examine officials in the potential new tax, which would replace Stamp cults on owner-occupied houses.

It would be paid by homeowners on properties worth more than £ 500,000 worth it as they sold them. The amount paid would be determined by the value of a property.

Such a change would be a big deal because under the current system, stamp duty is paid by buyers, not sales. It may be a larger worries for some people living in LondonThe south east and other areas where animal compenses are particularly high.

Secondition, officials are said to study whether after a national tax, a local property tax could replace in medium term.

While a new national property can be in theory can be implemented during this parliament, it would be skipping the boards of riding longer and would almost worked to win a second term in 2029.

How does Stempuls air works, and what's wrong with it?

You need to pay stump cultets (SDLT) (SDLT) – to give the full name – when you buy a property over a particular price in England and Northern Ireland. There are several approach to some country load in Wales and Scotland.

Stamp-duty rates differ from depending on whether someone is a first time buyer, and are tied up in steps up depending on the value of the property. They can also vary as a result of stamp duty “holidays” benefit some buyers that are brought in time to time.

The rates changed in April this year, and (first-buyers except for that this is the sole residential area, the tax will put the part of £ 250.001 to £ 925,000. There are then two bands so that it comes out on 12% on the part above £ 1.5m.

Economics and others, however, long criticism, or outdated – SDLT is based on a tax in 2007 in England in England in England in England – and argument the largest barrier for moving home.

PAUL Johnson, to recently for the Director of the Director of Fiscal Studies, has said that of all taxes currently stops stamp-duties “has a very good assertion the most harmful and pernicious of the lot“. He added:” How often you move the more tax you pay. The TV directory the housing market and, by expansion, the labor market. “

How many stamp duty do people typically pay? Do most people pay it?

The average stamp plottage has risen to £ 9.935, according to study previously issued this year by Coventry Building Society. It was £ 6,235 in 2014, according to his data. But of course individual quantities variously vary.

It is estimated that the majority of ownership transactions – about 60% -plus – are affected by stamp.

Tell me more about this replacement of this voice plann '

It is suggested it would be paid by owner occupiers on houses more than £ 500,000 worth selling. The rate would be set by central government. This tax would not replace a stamp condition on second houses.

On the face of it, and based on current preaching prizes would mean a £ 500,000 threshold that meant that the majority of people who sells their house would escape the new tax. The Average price of a house In the UK is £ 272.664 or £ 298,237, depending on whether you believe Lanster's as Halifax'70's last data.

But hard happiness if you are in London: According to the last data of Halifax, the average house average in the capital £ 539,000.

The Guardian reported that the new tax (if it happens) would only affect a fifth of property sales.

Stephen Perkins, the managing director at the Home Loans broker yellow bricks mortgage, said: “Financial unless the property tax reasonably is very highly, this increase less money than stamp duty, as fewer houses are affected.”

He claimed: “Initially sellers will just build this to ask prices, sending [property] prices up. “

Sources said that officials of the Treasury were, partly, sign on the findings of A 48 page report From the center-right think tank, which was dropped in August in August last year.

This puts the idea for a taxation of 0.54%, with a 0.278% of Each value that is more than £ 500,000. The thinking of value. The thinking of value. The thinking of value. The thinking of value. The thinking of value. The thinking of value In Stamp-duty, this tax would not be asked to pay this tax.

What about this idea to pick it out of council tax?

Council tax has been described as “a deep broken system“, And in his report said by the way it mean” an average house in Blackpool contributes to the public scholars than a house in Kensington “.

Council tax bands in England are still set with property of April 1, 1991, ranging from Band A, for Houses worth the £ 40,000, for those worth £ 320.001 and above. The system of the financing local government is different about the United Kingdom.

The average band D Died tax set by local authorities in England For 2025-26 was £ 2,280 – an increase in £ 109, or 5%, again of 2024-25 Figure of £ 2,171.

The idea of a new local annual property Levy to replace council load was also proposed to forward. That plan – for a “local proportional tax” – would result in the owners, instead of the residents, of a property to £ 500,000 paid tax dependent on the value of the house. They would pay a minimum £ 800 per year. A rate of 0.44% “would increase the same amount of revenue as a council tax,” said the report.

What do people say about all this?

The tax payers' alliance was cited as says, “If these reports are true, then tax payers in all reasons in the noise load.”

Craig Fish, the director with the director, said he is concerned that such a shake-up would stop selling or moving, especially in high value. “The result is less income excess,” he said.