Resolution Foundation has proposed replacing Council Tax and Stamp Duty in England with a revenue-neutral annual charge of 0.7 percent of a home’s value, paid by the occupier rather than the owner.
The think tank’s briefing, published on 24 September, says its model would use current valuations, rebates for lower-income households and bill deferrals for people who are asset-rich but cash-poor. It is a policy proposal, not a Government announcement or a change to the taxes landlords pay today.
Buy-to-let investors have a direct interest because Stamp Duty affects the cost and timing of acquisitions, while a property-value charge could alter how tenants, owner-occupiers and landlords assess the cost of holding different homes. Any move from a transaction tax to an annual charge would also shift the debate from purchase costs to longer-term occupation costs.
A 0.7 percent charge would replace two existing taxes
Resolution Foundation says England’s property-tax system is inefficient and uneven. It argues that Stamp Duty discourages moves, while Council Tax is still based on 1991 values despite sharply different price growth across the country.
Its alternative would charge 0.7 percent of property value each year and replace both Council Tax and Stamp Duty. The Foundation describes the package as revenue-neutral overall, meaning it is designed to raise the same total amount rather than promise an immediate tax cut.
The paper says the average effective annual tax rate on a £100,000 home will be almost three times the rate on a £1 million home by 2030-31 under the existing system. That comparison is central to the proposal, but it does not establish what any individual household, landlord or tenant would pay without the detailed transition rules.
Rebates and deferrals would be central to the proposal
The Foundation proposes rebates to protect poorer households and deferrals for people with valuable homes but limited cash income. A deferred bill would be paid later, rather than requiring an owner or occupier to find the full amount immediately.
The practical effect on landlords would depend on how a final scheme dealt with tenancy agreements, rent levels and the existing tax treatment of rental income and finance costs. The proposal states that occupiers would pay the charge, but the economic effect could still feed into affordability, rents and investment decisions.
This follows Landlord Knowledge’s report on a separate property-tax overhaul proposal, which focused on claims that reform could improve housing mobility. Landlord Knowledge’s coverage of parliamentary calls for a Stamp Duty consultation also showed that transaction-tax reform is becoming a recurring policy question rather than a settled Government plan.
Current valuations would be needed before any switch
The briefing says a workable transition would need an up-to-date database of property valuations and a phased approach for households whose bills rose. It argues that Council Tax and Stamp Duty should be reformed together, rather than treating one tax in isolation.
A purchase planned before the Autumn Budget must still be costed under today’s rules. The 0.7 percent model does not remove current Stamp Duty charges, alter additional-property rates or set a timetable for legislation. It is evidence for a policy debate, not a reason to assume a purchase will face different tax rules this year.
Resolution Foundation’s Home economics briefing sets out its proposed model and its assumptions. Investors should distinguish between a think-tank recommendation and measures confirmed by the Treasury.
What this means for landlords
- If you are buying: continue to cost the transaction under the current Stamp Duty rules; the 0.7 percent model has not changed the tax due on a purchase.
- Watch for: any Budget consultation on property-tax reform, particularly proposals linking new valuations, annual charges and additional-property ownership.
- If you are reviewing rents: do not assume a future occupier charge can simply be passed through. Affordability and the legal position would depend on any final scheme.
- Bottom line: the proposal would move the property-tax debate away from one-off purchase costs, but it is not Government policy.
Editor’s view
Stamp Duty is an awkward tax for an investment market that needs people to be able to buy, sell and improve homes. The 0.7 percent headline is simple, but the hard part would be the valuation system and the transition for people whose bills rise – neither can be treated as a footnote.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 25 September 2026
Sources: Resolution Foundation, Home economics
Related reading: Centre for London says tax overhaul could free 79,000 homes
