As Rachel Reeves continues to contemplate the introduction of a new property tax on high value properties in a bid to to fill a £40 billion shortfall in the public purse; despite being dubbed the ‘mansion tax’ it’s pensioners that could be the ones left feeling the greatest pinch. Under the proposals being considered, the Chancellor is reportedly looking to end the exemption from capital gains tax when owners of higher-value properties choose to sell. According to analysis by the Times, a threshold of £1.5 million would hit around 120,000 homeowners who are higher-rate taxpayers with capital gains tax bills of £199,973. Simon Brown, of property data company Landmark Information Group, said: "Any tax that rises with property value risks slowing the housing market even further. "If downsizing becomes less attractive, larger family homes stay off the market and transaction volumes fall.

Source: The Times August 21, 2025 07:50 UTC