Treasury 'looking at property taxes'

THE Treasury is considering plans to raise money from a tax on the sale of homes worth more than £500,000, according to reports.

- WILL DURRANT

Government officials are looking at a potential national property tax, which would replace stamp duty on owner-occupied homes, The Guardian reported.

No final decision has been made, but it is thought this national tax could help build a model for local levies to replace council tax in the medium term.

Buyers pay stamp duty under the existing framework, if they purchase property worth more than £125,000.

The new levy would be paid by owner-occupiers on houses worth more than £500,000 when they sell their home, with the amount due determined by the value of the property and a rate set by the Government.