New property tax on the highest value homes

The Government is going to charge a Council Tax High Value Supplement on homes worth £2m or more in England. The Chancellor reported an annual additional cost of around £2,500 a year for homes worth £2m, rising to £7,500 a year for homes over £5m. For a £2m home, this is less than double the average council tax today and is less than many feared.

The impact on those homes worth around the £2m price band remains to be seen and will depend on how this new scheme is rolled out.

Rise to property income tax rates for landlords

Landlords will face increased property tax rates from April 2027. The basic, higher and additional rates of income tax for property income will each increase by 2%, taking them to 22%, 42% and 47% respectively.

This comes on top of tighter regulations from the recent Renters’ Rights Act, as well as new energy efficiency regulations and higher stamp duty on the purchase of additional homes (from 3% to 5%) in last year’s Budget.

No changes to stamp duty rates or thresholds

The stamp duty price thresholds for existing home owners were set in 2014. The cost of buying is growing for average home buyers in towns across the south of England and many argue the case for the abolition of stamp duty as part of wider property reforms remains a strong one.

.. well at least it has now been announced and so the volume of speculation is behind us