Government Rejects Reports of Council Tax and Stamp Duty Overhaul

The Government has rejected reports that it is actively planning to replace Council Tax and Stamp Duty with a new annual property tax.

Over the weekend, reports suggested ministers were considering proposals, including one backed by campaign group Fairer Share, which would replace both taxes with an annual charge of 0.48% of a property's current market value. Under that proposal, second homes, empty properties and some overseas-owned homes would pay 0.96%.

However, Downing Street said claims that such reforms were under "active consideration" were "not true". The Prime Minister's spokesperson stressed that any future tax decisions would only be announced at a fiscal event, such as the Autumn Budget.

Prime Minister Andy Burnham later confirmed that Stamp Duty will not be changed or abolished in the forthcoming Budget. While ruling out immediate changes, he said there are still "big decisions" to be made about the future of Council Tax, which remains based on 1991 property valuations in England.

For homeowners and buyers, nothing changes today. Council Tax and Stamp Duty remain in place, and anyone buying a property or budgeting for housing costs should continue to use the current rules unless the Government announces formal reforms in a future Budget.

The debate over property taxation is likely to continue, but there are no confirmed government plans to replace either tax at this stage.