Andy Burnham’s Potential Changes

Despite Prime Minister Andy Burnham not yet announcing any policies to abolish or change Stamp Duty, speculation persists that this could become government policy.

Burnham, who officially became Prime Minister on Monday, 20^th July, has expressed strong support for a significant reform of property taxes over recent years. He said that he will deliver “the most significant change moment in our politics for 40 years.”

The proposed changes

• Stamp Duty Land Tax (SDLT) may be replaced with an annual property tax (or land value tax)
• Reform or abolish Council Tax
• Pledged the biggest council house building programme since World War II
• Increasing Capital Gains Tax (CGT) rates and reducing/removing some CGT reliefs

Burnham seems to be keen on the Fairer Share proposal which would:

• Abolish Stamp Duty completely
• Abolish Council Tax
• Present a yearly property tax of around 0.48% of a property's value (higher rates likely for second homes and vacant properties).

What does this mean for first-time buyers and those moving home?

• No Stamp Duty when buying
• An annual property tax will be due instead

What does this mean for existing homeowners?

• Some people may pay less than they do in Council Tax
• Those with higher-value properties could pay a lot more annually

What does this mean for Buy-to-Let landlords and those with second homes?

• Landlords selling investment properties are likely to pay a lot more tax on any profit gained
• Some may want to sell before any changes take place; others may choose to keep their properties to defer paying the tax
• Owners of second properties or holiday homes could be looking at higher tax costs when selling

The government has not published any official policies; this is all speculation as there is no legislation, draft bill, or implementation timescale. This is more of a policy idea rather than a definite change at this stage.