After weeks of leaks about potential property taxes emanating from the Chancellor, there are now just a few that are under ‘active consideration’, is has been claimed.

This includes the front runner, a council tax surcharge on the most expensive homes also called a Mansion Tax which would would see 2.4 million properties in bands F, G and H revalued, with a surcharge applied to the top 300,000.

Treasury modelling indicates it could raise around £600m a year, adding £2,000 to the annual bill for affected households. It could, however, hit more ordinary family homes in London and the South East.

NI for landlords

The next most hotly tipped for inclusion is National Insurance for landlords. It would apply a 20% levy on rental income, with a higher rate above £50,270 but would risk pushing even more landlords out of the sector.

Next up is a yearly levy on the portion of a home’s value above £2million. About 150,000 properties could fall into this bracket, with owners of £3million property facing an annual levy of around £10,000.

SDLT Overhaul less likely

Talk of a wider SDLT overhaul is said to have cooled, The Daily Telegraph says, as it would be too slow and complicated to make any major changes, but a targeted adjustment at the top end is still possible.

The analysis shows that Restricting Private Residence Relief for homes above £1.5m is another outside possibility, but Rachel Reeves is reportedly aware of the risk that it would simply reduce transactions and therefore is unlikely to raise significant revenue.

The Chancellor faces an unenviable task in balancing the nation’s finances while also trying to stimulate economic growth, but this must not come at the expense of a stable and functioning property market.”

The final tax on the possible list is the residence nil-rate band on inherited property, which is rumoured to still be under review. Previous Treasury analysis indicated that reducing or removing the relief could bring around 30,000 more families into IHT each year and raise an extra £2bn.

Speaking exclusively to The Neg, Nathan Emerson, CEO of Propertymark, says: “The Chancellor faces an unenviable task in balancing the nation’s finances while also trying to stimulate economic growth, but this must not come at the expense of a stable and functioning property market, a sector that is fundamental to the UK’s wider economic health.”