The research indicates that the majority believe such a change would be unjust and could have negative consequences for both the property market and the wider economy

Most UK homeowners are against the idea of extending capital gains tax (CGT) to main residences, results of a recent survey have revealed.

The research, commissioned by whole-of-market brokerage Boon Brokers, indicates that the majority believe such a change would be unjust and could have negative consequences for both the property market and the wider economy.

Currently, CGT does not apply to profits made from selling a primary home in the UK. The proposed reform would see this exemption removed or lowered for higher-value properties, making some of the gains from selling a main residence taxable. The details of the plan, including thresholds and rates, have yet to be finalised.

The survey, which gathered responses from homeowners across the UK, found that 97% do not consider taxing main homes to be a fair way to manage public spending. Furthermore, 73% said that the proposed change would be unfair, with many echoing the sentiment that “homeowners have already paid enough.”

A significant proportion, 71%, indicated they would be less likely to sell their main residence if the reform were introduced, suggesting the change could reduce the number of homes coming onto the market.

The data also shows that 39% of respondents believe the reform would negatively impact all homeowners, while 32% would prefer to see government spending reduced rather than new taxes introduced.

Introducing Capital Gains Tax on main residences could have serious consequences for the housing market. When fewer homeowners are willing to sell, supply will naturally constrict, driving up competition and prices, said Gerard Boon, managing director at Boon Brokers. This imbalance between supply and demand doesn’t just impact affordability, it would risk stagnating the market and placing greater pressure across all levels of the housing market.