Property has always been a favourite target for Chancellors. It represents one of the largest pools of value in the UK, and taxing it raises money quickly and in plain sight. So, with the current Chancellor under pressure to find billions while sticking to strict borrowing rules, property is once again in the spotlight ahead of 26 November.

It’s something that’s naturally on people’s minds, so here’s our take on it.

The ideas being floated could be significant:

• Scrapping stamp duty and introducing an annual property tax.
• Reforming council tax, which is still based on valuations set back in 1991.
• Extending capital gains tax to cover the sale of main homes.

None of this has been confirmed. But the direction of the debate matters – because if reforms do land, they could reshape the financial landscape for families and business owners alike.

How would an annual property tax work?

Stamp duty delivers big one-off payments for the Treasury but makes moving expensive. An annual property tax flips that: the upfront cost of moving would fall, but every household would face a permanent yearly bill based on the value of their home.

That creates very different incentives:

• Families might find it easier to move home – but they’d also see their ongoing cost of ownership rise. Over ten or twenty years, they could end up paying far more than they ever would have under the current system.
• Business owners and investors would face reduced returns from property holdings, as the tax keeps eroding income year after year.

The practical impact is that property becomes a continuous cost, not just a hurdle at the point of purchase. For many, that would make holding property for the long term less attractive.

What would council tax reform mean?

Council tax has been frozen in time since 1991. Reform would update bands to reflect today’s property values.

That would mean:

• Homes in areas where values have risen sharply (often London and the South East) would see higher annual bills.
• Homes in lower-growth regions could see bills fall.

For families, the bigger issue is predictability. A cost that has been steady for decades could suddenly change, forcing people to rethink where they live, how long they stay, and the financial assumptions they’ve built around their homes. For business owners with multiple properties, it adds another layer of uncertainty to long-term planning.

Could capital gains tax on main homes really happen?

Right now, if you sell your main home, you keep the full proceeds. That exemption makes downsizing later in life attractive and underpins how families plan to use property value.

If capital gains tax applied:

• Families would receive less when they sell, reducing what’s available to reinvest or pass on.
• Downsizing could become less appealing, keeping larger homes tied up for longer.
• Intergenerational transfers would become more complex, as more of the value is absorbed by tax.

This wouldn’t just change the numbers – it would change behaviour. People may hold onto homes longer, move less often, and rethink how property fits into their long-term planning.

Porta’s take

The common thread across these proposals is that property is no longer being treated as a once-and-done transaction – it’s being positioned as a steady revenue source for government. That shift matters. It changes the long-term cost of ownership, introduces uncertainty into costs that have been stable for decades, and raises questions about how families and business owners can rely on property in their future plans.

For households who have seen property as the anchor of stability, that’s a big adjustment. It means the decisions you make about moving, downsizing, or holding onto property aren’t just lifestyle choices anymore – they’re exposed to rules that may change mid-journey.

Our view is clear: if even part of this speculation becomes policy, the way property is owned and planned around in the UK will feel very different. Forward planning becomes essential, because waiting for certainty may mean reacting too late.

Obviously though – that is all it is – speculation. This article explains why waiting for the facts is the best option. And that’s why on 26 November we’ll be giving our live reactions to the Budget – cutting through the speculation and showing exactly what the announcements mean in practice for families, professionals, and business owners.

Important: This article provides general information only and does not constitute personal financial advice. The information is based on our understanding of current regulations, which may change in future. Decisions about your finances should always be made based on your individual circumstances. If you’re unsure about the suitability of any course of action, you should seek regulated financial advice. The Financial Conduct Authority does not regulate tax planning, estate planning or wills.The value of your investments can go down as well as up, so you could get back less than you invested.

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