Property Proposals
Claire Baker-Kemp
Amongst the Government’s initiatives in the Autumn budget were changes affecting property owners. Our Head of Commercial Property, Senior Associate Claire Baker-Kemp, shares the details.
The principal proposals relating to property that were delivered in the Autumn Budget were as follows:
- Taxation of Property Income: From April 2027, landlords’ income from renting out property will be taxed at an additional higher rate that corresponds to a landlord’s tax band. For example, a basic rate taxpayer will have rental profits taxed at 22%, a higher rate taxpayer will be taxed at 42% and an additional rate taxpayer will pay 47%.
- Annual Property Tax: This is effectively a High Value Council Tax Surcharge (HVCTS). From April 2028, an annual charge of £2,500. will be levied on properties valued at more than £2 million, rising to £7,500 for properties valued above £5 million. This charge is in addition to council tax and will be collected by the Local Authorities. The HVCTS will be payable by the property owner, not the occupier.
- Business Rates: From April 2026, there will be lower rates for retail, hospitality, and leisure properties as a result of a 5p lower business rates multiplier, which is expected to benefit 750,000 properties. This will be funded by properties with rateable values of £500,000.00 and above being charged an additional 2.8p on their rates multiplier. A 100 per cent business rates relief for eligible electric vehicle charging points and electric vehicle only forecourts will also be introduced.
- Stamp Duty Land Tax: Despite changes to commercial stamp duty land tax being widely expected, no changes to the rates, thresholds or structures were made.
