The basic calculation
The model starts with a current value for the residential property. An owner-occupied main residence would be charged 0.48% each year. A home valued at £300,000 therefore produces an illustrative annual charge of £1,440:
£300,000 × 0.0048 = £1,440 per year.
Unlike Council Tax, the charge is not based on a band or a historic valuation. The proposal describes annual revaluations, with the taxable figure based on an average property value across the preceding three years.
What it is designed to replace
Fairer Share proposes replacing the Council Tax band system. It also proposes abolishing Stamp Duty Land Tax on owner-occupied property. This means a complete comparison requires more than checking one annual bill: people who move home may also need to consider the transaction tax they would no longer pay under the model.
The published evidence says SDLT would remain for second homes and non-resident buyers. It should therefore not be treated as a universal abolition of stamp duty.
Who would be responsible?
Property owners would pay the proposed charge. Tenants would no longer be directly liable in the way occupiers can be liable for Council Tax today. The proposal argues that this would reduce the number of accounts administered by councils and align England more closely with property-tax practice elsewhere.
That does not prove a tenant's total housing cost would fall. Landlords could attempt to reflect an owner tax in rents, depending on market conditions and any eventual legislation. Neither the proposal nor this calculator can predict that behaviour.
The proposed higher rate
A proposed rate of 0.96% applies to second homes, empty homes and non-resident-owned homes, including overseas owners. At that rate, a £500,000 property would produce an illustrative £4,800 annual charge.
| Published category | Proposed rate | £500,000 example | SDLT treatment described |
|---|---|---|---|
| Owner-occupied primary residence | 0.48% | £2,400/year | Proposed abolition |
| Second home | 0.96% | £4,800/year | Remains |
| Empty home | 0.96% | £4,800/year | Not specified in the summary evidence |
| Non-resident-owned home | 0.96% | £4,800/year | Remains for non-resident buyers |
National and local components
The 0.48% headline rate is described as two parts: an indicative national rate of 0.32% and a local rate of 0.16%. The national element would support redistribution while the local element would be spent locally and could potentially vary.
This is why 048.TAX shows the headline proposal only. A real system containing locally variable rates could produce a different bill.
What happens if an owner cannot pay?
The proposal includes a deferral mechanism for owners who can demonstrate that they cannot pay. The charge, plus modest interest, could then be settled later or when the property is sold. The evidence compares this with existing Deferred Payment Agreements used for social care.
Eligibility tests, interest rates and protections are not specified in enough detail for this calculator to model them.
The campaign's proposed transition cap
Fairer Share has also proposed limiting the initial increase for an existing owner-occupied primary residence to £1,200 a year (£100 a month), with the cap ending when the home is sold. This is a material part of the campaign model, but it is not law.
048.TAX therefore shows the uncapped headline-rate calculation and, where relevant, the maximum starting figure implied by that proposed cap. It does not extend the cap through the optional multi-year projection because the sale date and any eventual transition rules are unknown. The detail can be checked in Fairer Share's manifesto.
Land with housing permission
The written evidence also proposes bringing undeveloped plots with housing permission into the property-tax system to discourage land from remaining idle. The residential calculator does not model land values or planning status.
What remains unknown
- Whether government will adopt any version of the proposal.
- The valuation and appeals process in final legislation.
- Actual local rate variation.
- Whether any future scheme would retain the campaign's proposed £1,200 transition cap.
- Detailed relief and deferral eligibility.
- The exact treatment of every rental or mixed-use scenario.