UK Property Tax Shake-Up: What the Proposed End to Stamp Duty Means for Buyers, Sellers & Businesses
- Laurie Baugh
- Sep 3
- 3 min read
As we approach the Autumn Budget on 26 November 2025, the UK property market is navigating a wave of potential tax reforms.
From the looming end of generous stamp duty thresholds to discussions about replacing stamp duty altogether with a new national property tax, these changes could reshape how individuals, investors, and developers plan and finance property transactions.
Here’s what you need to know, and how Approved Finance Group’s tailored services can help you stay ahead.
What’s on the Table Now?
A. Stamp Duty Thresholds Are Already Reduced
As of 1 April 2025, stamp duty thresholds have dropped:
Main residences: 0% on the first £125,000 (down from £250,000)
First-time buyers: relief now ends at £300,000 (down from £425,000) with the overall relief cap at £500,000 (from £625,000).
B. New Property Tax Potential: From Talk to Trends
Current planning discussions are advancing rapidly:
The Treasury is exploring replacing stamp duty with a national property tax payable by sellers of homes above £500,000, shifting tax burden from buyers to sellers.
The same discussions include a longer-term replacement of council tax with a local property levy aligned to property values.
Experts argue these reforms could affect roughly 20% of property transactions, with wealthier regions like London likely in the spotlight.
C. Additional Tax Measures Under Consideration
Removing private residence relief, imposing Capital Gains Tax on primary homes over £1.5 million, potentially at 18–24%, is under consideration.
Calls persist for extending National Insurance to rental income as part of broader tax reform discussions.
Theresa-level announcements are pending as Chancellor Reeves prepares for the Autumn Budget on 26 November 2025.
What This Means for People & Businesses
Homebuyers (Especially First-Time)
With reduced stamp duty relief, many now pay tax earlier in the purchase, increasing upfront costs.
If stamp duty is abolished or replaced in the Budget, timing transactions could become a strategic advantage.
Sellers of Higher-Value Homes
A seller-paid property tax on homes over £500,000 could result in unexpected costs, especially for those downsizing or relocating.
Investors & Landlords
Potential NI on rental income and CGT on high-value property sales could erode returns or challenge investment viability.
Developers & Commercial Buyers
Changes in tax treatment and policy uncertainty may impact project margins and planning, making pro forma flexibility and finance access more crucial than ever.
3. How Approved Finance Group Can Help
When policy is in flux, clarity and speed matter. Approved Finance Group is ready with solutions to empower decisions:
Commercial Mortgages: Secure debt for commercial property acquisitions or refinancing, with terms designed to buffer against potential tax shifts.
Bridging Loans: Ideal for acting quickly in a shifting tax landscape, whether accelerating a purchase before budget changes or bridging a sale.
Development Finance: Flexible, project-tailored funding to help developers weather speculative tax regimes and maintain momentum.
Kelly Moody, Senior Property Finance Broker
“With these reforms potentially shifting tax liabilities and timing, having swift, targeted financing is more critical than ever. We’re here to help clients move smartly and strategically through an evolving landscape.”
Thomas Brogan, Property Finance Broker
“Uncertainty around property tax can paralyse deals, but the right financial solution, bridging finance, commercial mortgage or development funding, can turn obstacles into opportunity.”
At Approved, we make property finance simple. Whether you're buying, refinancing or investing in property, we’ll help you secure the right terms for you and your business. Contact us today.
