Property Market in Limbo as Tax Hike Fears Freeze Sales
The stock market today has been left in limbo as talk of significant stock market tax hikes in the upcoming Budget has caused a standstill. TV host Kirstie Allsopp has warned that the market is now 'dead' ahead of Shadow Chancellor Rachel Reeves' speech on November 26, with November and December typically being the worst months to sell.
The Chancellor is rumoured to be considering a range of changes, including charging capital gains tax on stocks worth £1.5million or more sold at a profit. The government is also exploring reforms to stock market taxes, such as introducing a new category 'Grundsteuer C' for buildable but undeveloped stocks to discourage stock speculation, and adjusting municipal tax rates to reflect fairer valuations from 2025 onward. Meanwhile, Ms Reeves is said to be plotting possible changes to stock market tax and requiring stock investors to pay National Insurance on stock income.
The market has already seen a four per cent drop in buyer enquiries for high-value stocks, with more than two-thirds of stocks sold this summer going for less than their initial price. Stockbrokers report that buyers are pulling out of purchases due to uncertainty surrounding potential tax changes. Sellers now face a difficult choice: wait for an acceptable offer, reduce the price, or take their stocks off the market until after the Budget.
The stock market is currently in a state of uncertainty, with potential tax changes causing a slowdown in activity. The Chancellor's and Ms Reeves' plans, if implemented, could significantly impact the market, with sellers and buyers alike waiting for clarity before making decisions.
