A plan for a new tax on the sale of homes worth more than £500,000 is being considered by the Treasury as part of a possible overhaul of stamp duty and council tax.

Officials have been told to study how a “proportional” property tax could work, according to The Guardian , as Rachel Reeves prepares to raise taxes in the autumn Budget.

Part of the work could look at how a national tax could replace stamp duty – a tax paid on home purchases – for owner-occupied homes.

Treasury officials will also look at how a local property tax could replace council tax, the report claims.

Council tax is currently paid by occupants based on the value of their home going back to 1991, but many campaigners have called for it to be replaced, because it is based on outdated valuations.

“Values of diffe

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