Houses worth more than a certain amount could be hit with fresh new tax

• The Treasury is examining plans for a new proportional property tax on the sale of homes valued over £500,000.
• Chancellor Rachel Reeves has asked officials to study the tax's introduction and model its impact ahead of this autumn's budget.
• The proposed levy could replace stamp duty on owner-occupied homes, with a potential second stage replacing council tax in the longer term.
• If adopted, the tax would be paid by owner-occupiers upon selling a home above the £500,000 threshold, affecting approximately a fifth of transactions.
• The review aims to introduce more wealth-based taxes and provide a more stable income source than current stamp duty receipts.

IN FULL

Reeves considering new property tax on houses worth more than £500,000