If Labour removes Inheritance Tax reliefs we could see a plethora of properties flood the market, Jack Malnick, founder of SellHouseFast.co.uk, has warned.

The tax is currently charged at 40% on estates over £325,000.

Malnick said: “The Labour Party is reportedly considering capping certain inheritance tax reliefs.

“Currently, qualifying business and agricultural assets can be passed down without paying Inheritance Tax, making them attractive for generational wealth transfer.

“However, capping the relief at £500,000 per person, anything exceeding this threshold would be taxed at the usual 40%, which could make it less appealing for families to retain these assets.”

“This could increase the sales of such assets on the property market, as beneficiaries might opt to liquidate properties or agricultural land to cover the Inheritance Tax.

“Potentially leading to an influx of properties onto the market, it could drive supply up, particularly in rural areas.”

Over time, holding high-value business or agricultural properties could lose appeal and shift investment strategies, shifting the focus more on liquid assets or alternative tax-efficient planning

Capital Gains Tax

Another speculated change in the Autumn Budget is Capital Gains Tax, as it’s thought it could be aligned with income tax rates, which would potentially raise the top rate of CGT from 28% to 45%.

Malnick added: “If the proposed changes to Capital Gains Tax are implemented, the property market could face saturation as homeowners rush to offload their assets to free up capital or reduce their tax liabilities.

“This shift could further complicate the market landscape, emphasising the need for sellers to act swiftly to capitalise on current demand before potential tax reforms take effect.

“Pensioners and middle-income investors are also expected to be impacted the most, particularly if changes are implemented immediately after the post-budget announcement, disrupting financial planning, and making it more difficult.”

Via @PropertyWire