Budget 2025: Property Tax Rumours

A flurry of rumours have recently surfaced about potentially radical changes to the taxation of property. How likely are these changes and how far would they go in helping the Chancellor meet her ‘non-negotiable’ Fiscal Rules (to bring the nation’s current account into surplus by 2023)?

The two main proposals put forward are to reform the council tax regime and /or replace stamp duty with a new form of ‘property tax’.

With regard to council tax, the idea would be to revalue properties for council tax purposes (currently based on 1991 values which does seem a little out of date!) and also to increase the rate of that council tax on higher valued properties (values over £500k has been mooted).

In term of the completely new ‘Property Tax’, this would completely replace Stamp Duty. There would be an annual property tax based the value of your home with again, the tax being on homes valued over £500k.

The question that should be asked with regard to both of these proposals is would these changes be implemented quickly enough to be of any use to the Chancellor? I would imagine, in particular with regard to house valuation based taxes, this would take a long time to actually implement.

In addition, the Government must bear in mind any un-intended consequences of such changes to property tax. How will those in later life who are asset rich (or in this case property rich) but cash poor meet their tax liabilities as they fall due. Also what impact with tax on higher value properties have on the overall property market with perhaps a falling demand for higher value homes?

What does all this mean for later life financial planning? Over the next few months in the lead up to the Budget on 26th November we will be providing insightful commentary and advice for those in later life. This can be best accessed reviewing our regular blog articles and commentary on the Harold Stephens website and social media channels. Head to ‘Harold Stephens IFA’ on You Tube and subscribe to the channel to get the very latest videos direct from Richard Higgs, later life financial planning specialist.

Finally, register and reserve your place at one of our 2 post-budget Later Life Financial Planning live events to be held on Wednesday December 3rd 2025 by emailing office@haroldstephens.co.uk.