Surging property tax take is changing how clients buy, sell and plan
The latest round of Treasury and HMRC data has underlined just how much the public finances now depend on property‑linked taxes – and brokers say their clients are beginning to change behaviour in response.
Over the first 10 months of the 2025/26 tax year, inheritance tax (IHT) receipts reached £7.1bn, around £100m more than in the same period a year earlier, extending a long‑running rise in the amount collected from estates. The Office for Budget Responsibility expects that figure to climb to £9.1bn for the full year.
Capital Gains Tax (CGT) has risen even more sharply. HMRC figures show CGT receipts of £16.985bn in January 2026 alone – roughly £7bn higher than in January 2025. Across the 12 months from February 2025 to January 2026, CGT raised £20.6bn, up from £14.3bn in the preceding year, an increase of about 44%.
Stamp duty land tax (SDLT) is also making a bigger contribution. Homebuyers paid £899m in SDLT in January 2026, a 6% increase on the £848m collected in January 2025 – despite January traditionally being a quieter month for transactions.
Against that backdrop, intermediaries say tax is no longer sitting in the background of client discussions.
‘Tax is now on the table from the outset’
Louis Mason, of Oportfolio, says the tone of client conversations has shifted noticeably over the past year.
“We are actually seeing a shift in how clients are approaching property decisions. For many homeowners and landlords, tax is no longer an afterthought, it’s becoming a central part of the conversation alongside affordability and rates,” he told Mortgage Introducer.
Rather than simply focusing on monthly payments and headline borrowing rates, buyers and investors are increasingly asking what a purchase, sale or refinance could mean for their future tax position – from potential IHT exposure to possible CGT bills if they exit later.
For advisers, that is turning routine fact‑finds into wider discussions about ownership structures, time horizons and how a given property fits into the client’s broader financial plans.
More families thinking about IHT earlier
Rising house prices, frozen IHT thresholds and policy tweaks have been steadily bringing more households into scope for inheritance tax, not just those with very large estates. Brokers say this is now showing up clearly in their day‑to‑day work.
“On the IHT side, more clients are proactively discussing succession planning earlier, particularly those with significant property equity,” Mason noted. “There’s growing awareness that rising house prices can push estates into higher tax exposure, which is prompting conversations around gifting strategies and longer-term planning.”
This can mean clients asking whether to transfer property or equity to the next generation sooner, how joint ownership is structured, or whether other assets should be used instead of property to pass on wealth.
While advisers cannot provide detailed tax advice, many are finding themselves playing a coordinating role – highlighting issues, helping clients understand the broad implications, and signposting them to planners and solicitors where needed.
CGT driving portfolio reshuffles, not break‑neck growth
The jump in CGT receipts – alongside cuts to the annual allowance – is also influencing how landlords and second‑home owners approach their portfolios.
“With CGT, landlords and second-home owners are weighing up whether to hold or exit properties more carefully,” said Mason. “Higher tax bills, combined with wider cost pressures, are influencing portfolio reshaping rather than outright expansion in many cases.”
In practice, that can mean investors selling off underperforming or lower‑yielding units, consolidating into fewer, better‑quality properties, or pausing planned acquisitions until the net returns – after tax – stack up more convincingly.
Brokers report more “what if?” conversations around potential sale dates and future tax rules, as clients try to avoid being caught out by unexpected liabilities further down the line.
Up‑front stamp duty still a major brake
While IHT and CGT dominate much of the policy debate, SDLT remains one of the most immediate pain points for movers and investors, thanks to its impact on up‑front costs.
“Stamp duty is still one of the biggest drivers,” Mason observed. “We’re seeing some buyers reassess timing or property choice because upfront transaction costs are so much, especially for movers and investors.”
For some would‑be buyers, a substantial SDLT bill can tip the balance towards delaying a move, choosing a cheaper property or staying put and refinancing instead. For investors, it can be the difference between a viable and a marginal deal once all costs are included.
This in turn is feeding into more granular affordability work from brokers, who are factoring in not just ongoing mortgage payments but the full cash outlay required to transact.
Cautious, advice‑led clients
Taken together, the growing tax take from IHT, CGT and SDLT appears to be reshaping both sentiment and behaviour in the property market.
“Overall, it does seem to be making clients more cautious and more advice-driven,” Mason said. “Buyers and landlords still want to transact, but they’re seeking clearer guidance on the total cost of ownership and the longer-term tax implications before committing.”
For the intermediary community, that means:
- Longer, more complex advice journeys as tax considerations are woven into product and borrowing decisions.
- Greater collaboration with other professionals where detailed tax planning is required.
- A renewed opportunity to demonstrate value, by helping clients see beyond the rate and understand how today’s choices could affect them years down the line.
With the Exchequer drawing ever more revenue from property‑related taxes, brokers look set to remain on the front line – helping homeowners and investors navigate not only a challenging rate and affordability environment, but an increasingly consequential tax landscape as well.
