Developments in property law following Autumn 2025 Budget

Key change: High Value Property Surcharge

• The main property-related change is a new council tax surcharge on properties valued over £2 million, starting in April 2028.
• The tax has been coined the ‘mansion tax’.
• This affects fewer than the top 1% of homes and is expected to raise £0.4 billion by 2029-30.

Stamp Duty Land Tax (SDLT) Changes – Important Information for First Time Buyers.

• For mainstream buyers, the rates and thresholds for SDLT have not significantly changed.
• It should be noted that the First Time Buyer relief has reverted to earlier structure, meaning first time buyers of homes priced above £300,000 are now liable for SDLT on a larger share of their purchase price than was the case under the previous regime. As a result, there may be higher upfront costs for many new buyers.
• Furthermore, if you are a first time buyer buying a property over the price of £500,000 you shall unfortunately not be able to use First Time Buyer Rates and the Standard Rate will apply.

Higher Tax on Rental and Property Income

• From April 2027, income tax rates on property income will rise by two percentage points across all rates, meaning the new basic rate of income tax will be 22% and the new higher rate of income tax shall be 42% and additional shall be 47%.
• Accordingly, if you are a landlord, you will have to factor in the higher tax liability on rental profits.