The Chancellor announced a number of measures affecting the taxation of property.
Taxation of High Value Properties
This will be an annual surcharge of £2,500 for properties worth more than £2m rising to £7,500 for properties worth more than £5m. The surcharges will go up each year in line with the Consumer Prices Index.
The Chancellor explained that this will be levied on owners and collected alongside council tax and collection is not expected to begin until April 2028.
Taxation of Landlords
There is to be an increase of 2% tax on all rental income for landlords. The 2% increase to the basic, higher, and additional rate taxpayers of property rental income tax is effective from April 2027. The new rates will accordingly be 22%, 42%, and 47%.
Property Taxes Generally
There are no announced changes to the stamp duty land tax (SDLT) structure which sadly also means that there is no change to the current position on the higher rates for additional properties, and there are no changes proposed to the CGT treatment of properties.
