First reported by The Times, if this is introduced, it could end the capital gains tax (CGT) exemption homeowners enjoy when selling their primary residence.
Currently, CGT does not apply to the sale of private residences in certain circumstances, including if the grounds, including all buildings, are less than 5,000 sqm in total or no part of it has been let out.
Reportedly, the Treasury is discussing what the threshold will be, but it has been speculated that this could impact homes worth £1.5m and higher.
Rightmove has calculated that if the tax is applied to homes worth £1.5m and more, this would primarily affect residences in London and the South East.
Some 10.9% of homes for sale in London are priced at £1.5m and over, Rightmove said, compared to an average of 1.6% outside of the capital.
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In the South East, 4.4% of homes up for sale are at or above £1.5m.
Colleen Babcock, property expert at Rightmove, said: “In essence, this would predominantly be a tax on the most expensive areas of London and the South East. The London market is already feeling the effects of taxation more acutely than other parts of England, and this is likely to deter some moves at the upper end.
“While our data shows that only a small proportion of homes for sale are in this price bracket, alongside the proposed stamp duty changes, it could be a double whammy for the capital.”
Earlier this week, it was reported that Reeves was considering replacing stamp duty with a property tax on homes worth more than £500,000 to boost public finances. If introduced, these changes are expected to be announced at the next Autumn Budget.
