Chancellor mulls replacing stamp duty with new property tax

• Chancellor Rachel Reeves has proposed a property tax on homes valued over £500,000, which is being criticised as a "tax on ordinary Londoners".
• The plan would replace existing stamp duty for first homes, introducing a tax on sale for properties above £500,000 and an annual levy for buyers of such homes.
• Estate agent Simon Gerrard warned the change would hinder families buying in London, where average property prices are higher, and could distort the housing market.
• Critics suggest the levy, aimed at wealth from rising house prices, might cause sellers to increase asking prices to offset the new tax burden.
• The proposals, informed by a think tank report, are under consideration, with no final decisions made by the Treasury.

IN FULL

Reeves’ new homes levy slammed as a ‘tax on ordinary Londoners’ that will hit families hardest