UK households in homes over £500,000 could face a big rule change from HMRC. The Labour Party government is considering plans to raise money from a tax on the sale of homes worth more than £500,000, according to reports.

Sources said Treasury officials were initially examining a potential new tax that would replace stamp duty on owner-occupied homes. It would be paid by homeowners on properties worth more than £500,000 when they sold them.

The amount paid would be determined by a property’s value. Paul Johnson, until recently the director of the Institute for Fiscal Studies, has said that of all the taxes levied at present, stamp duty on homes “has a pretty good claim to be the most damaging and pernicious of the lot”.

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