The United Kingdom has entered a new political era under Prime Minister Keir Starmer. His leadership brings with it a fresh approach to fiscal policy, public spending, and economic reform. But with the government facing substantial financial challenges, the question on many people’s minds is: what new taxes could be introduced under Keir Starmer’s government?
For homeowners, property investors, landlords, and anyone considering selling a house, tax changes can have a direct and significant impact on personal finances. From Inheritance Tax adjustments to Stamp Duty reforms and the possibility of targeted levies on wealth, property, or certain industries, understanding what could be coming is essential for making informed financial decisions.
In this detailed guide, we will explore:
- The political and economic pressures influencing Starmer’s tax decisions.
- The types of taxes most likely to change.
- How potential changes could impact UK homeowners and property sellers.
- How to prepare for these changes, with strategies to protect your wealth.
And importantly, we will discuss how SellTo can help homeowners navigate uncertain times with fast, secure property sales that provide financial clarity and peace of mind.
1. The Political Landscape Under Keir Starmer
Keir Starmer’s Labour government has taken power with a promise to restore economic stability, improve public services, and invest in infrastructure. However, delivering these ambitions requires substantial funding.
While Starmer has publicly committed to avoiding tax increases on “working people” — specifically income tax, VAT, and National Insurance for employees — his government still faces a considerable budget gap. That means other forms of taxation, often more targeted or indirect, are likely to be explored.
Key Factors Influencing Tax Decisions
- Budget Deficit – The UK’s national debt and deficit have increased, partly due to previous pandemic spending and global economic instability.
- Public Spending Commitments – Promises to invest in healthcare, education, transport, and green energy will require consistent revenue streams.
- Political Balancing Act – Starmer needs to maintain voter trust while ensuring the fiscal books balance.
- Inflationary Pressures – Any changes to taxation must be considered alongside the cost-of-living situation for households.
2. “No New Taxes” – What That Really Means
When a government promises “no new taxes” for certain groups, it often means that alternative revenue measures will be used instead. This is where “stealth taxes” and targeted levies come into play.
Instead of outright increases to major tax rates, governments can:
- Freeze thresholds so inflation quietly moves more income into higher tax bands.
- Increase duties and charges on specific products, industries, or asset classes.
- Adjust reliefs and allowances to capture more tax without changing the headline rate.
For the average homeowner, these can be just as impactful as direct tax increases — sometimes more so.
3. Likely Tax Changes Under Starmer’s Government
Let’s examine the types of tax measures most likely to be introduced or adjusted.
3.1 Income Tax Threshold Freeze
While income tax rates may not rise, freezing personal allowance and higher-rate thresholds is a highly likely measure.
- Impact: More people will drift into higher tax brackets as wages rise.
- Why It’s Likely: It raises billions without a headline rate change, keeping political promises intact.
3.2 Adjustments to Inheritance Tax (IHT)
Inheritance Tax is often politically easier to adjust because it affects fewer people directly. Under Starmer, we could see:
- Reduction of the tax-free threshold.
- Removal of certain agricultural or business property reliefs.
- Targeting high-value estates, especially in property-rich areas.
For rural property owners and farmers, this could mean higher bills when assets are passed down.
3.3 Stamp Duty Land Tax (SDLT) Reforms
Stamp Duty is a consistent revenue earner. Starmer may:
- Reverse previous Stamp Duty holidays.
- Introduce progressive rates for high-value homes.
- Offer exemptions for first-time buyers but increase rates for second homes and investment properties.
3.4 Wealth Tax or High-Value Asset Levy
Although politically sensitive, a wealth tax has been discussed as a way to target the wealthiest households without affecting low and middle earners.
This could include:
- An annual levy on net assets above a certain threshold.
- Charges on second homes or luxury properties.
3.5 Targeted “Sin Taxes” and Duties
Starmer’s government could expand duties on:
- Alcohol and tobacco.
- Gambling.
- High-sugar or processed foods.
These not only generate revenue but align with public health goals.
3.6 Environmental and Green Taxes
In line with green policy pledges, expect taxes that:
- Encourage low-carbon energy adoption.
- Penalise high-emission vehicles and heating systems.
- Apply levies to fossil fuel companies (windfall taxes).
4. How These Tax Changes Could Impact Homeowners
Taxes don’t just affect your payslip — they influence property values, mortgage affordability, and the timing of property sales.
Property Value Pressures
If higher Stamp Duty or wealth taxes are introduced, demand for certain property types could slow, potentially lowering values in specific sectors.
Increased Transaction Costs
Any rise in Stamp Duty or legal costs will make moving more expensive, potentially discouraging sellers and buyers alike.
Inheritance Planning Complications
Changes to IHT could impact decisions on gifting property or passing assets to the next generation.
5. Strategies to Prepare for Potential Tax Changes
- Review Your Estate Planning – Seek advice on how to structure your assets to minimise exposure to potential IHT increases.
- Consider Timing Your Sale – If you suspect property-related taxes may rise, selling sooner can protect you from higher costs later.
- Evaluate Alternative Selling Options – Using a direct buyer like SellTo can help you lock in today’s market value without risk of falling prices or rising taxes.
- Diversify Investments – Spread assets across different sectors to reduce exposure to property-specific levies.
6. Why SellTo Can Help in an Uncertain Tax Climate
SellTo specialises in fast, secure property sales — an advantage when markets are unpredictable. By working with SellTo, you can:
- Receive a fair, transparent cash offer.
- Avoid the delays and uncertainties of the open market.
- Complete the sale quickly, potentially before new taxes or rules take effect.
- Remove the stress of chains, failed offers, and fluctuating buyer interest.
7. Final Thoughts
Under Prime Minister Keir Starmer, tax policy will be shaped by the need to fund ambitious public spending plans while maintaining voter trust. While major direct tax hikes may be avoided, expect a mix of stealth taxes, targeted levies, and relief adjustments to become part of the government’s fiscal strategy.
For homeowners, these shifts could influence property values, selling costs, and long-term investment returns. Staying informed — and acting decisively when necessary — will be key to protecting your financial position.
If you want certainty in an unpredictable environment, SellTo offers a straightforward, reliable way to sell your property quickly, safeguarding you from market and tax changes before they take hold.
