The UK government is reportedly exploring a major overhaul of the current Stamp Duty system, potentially replacing it with an annual property tax. This radical change could reshape the housing market and impact millions of homeowners across the country.
What's Being Proposed?
Under the new proposals, the upfront Stamp Duty Land Tax (SDLT) paid when purchasing a property would be scrapped in favour of a smaller, yearly charge based on property values. This shift aims to make the system fairer and more sustainable in the long term.
Potential Benefits
- Reduced upfront costs for first-time buyers
- More frequent, manageable payments for homeowners
- Potential to stabilise the housing market
Possible Drawbacks
- Ongoing financial burden for property owners
- Concerns about how valuations would be calculated
- Potential impact on older homeowners with limited income
Industry Reaction
Property experts are divided on the proposals. Some welcome the potential for making home ownership more accessible, while others warn it could create new financial pressures for existing homeowners.
The Treasury has not confirmed any immediate plans for reform, but sources suggest the issue is under active consideration as part of wider tax policy reviews.
