Autumn Budget 2025 Property Taxation and Mansion Tax
Published / Last Updated on 29/11/2025
The Autumn Budget 2025 covered a number of areas in connection with both residential and commercial property.
Stamp Duty
Despite fears, there were no changes to stamp duty and there was no massive overhaul for stamp duty to be replaced by a Property Sale or Wealth tax.
Council Tax Reform: New Mansion Tax
The Chancellor highlighted the difference between the average Band D property in England paying more in Council Tax than a £10m property in Westminster. From April 2028, a new High Value Council Tax Surcharge (HVCTS) will be introduced for properties in England worth more than £2m.
In addition to normal council taxes, higher value properties will also be subject to the HVCTS as follows:
- £2m + property values = HVCTS of £2,500 pa.
- £5m + property values = HVCTS of £7,500 pa.
Devolved governments in Scotland and Wales, set their own stamp duty and council tax arrangements. The government will encourage devolved governments to consider similar action for a HVCTS too.
Small Business Rates Relief (SBRR)
Small business rates relief is to be extended.
Currently, small businesses qualify for SBRR if you occupy a property (or properties) that meets the following criteria:
- Single property: You get 100% SBRR i.e. you pay no business rates) if your property has a rateable value of £12,000 or less.
- For properties with a rateable value between £12,001 and £15,000, the relief is applied on a sliding scale, from 100% to 0%.
- Multiple properties can still qualify if the main property has a rateable value below £15,000, provided:
- Each of the other properties has a rateable value below £2,900 with combined rateable values of all properties of £20,000 and £28,000 in Greater London.
- Rateable Value Update: From 1 April 2026, rateable values of all commercial properties will be updated since the last valuation in 2023.
- Transition period: The transition period to higher rateable values where properties that did attract SBRR but do not qualify from April 2o26 will now be spread over 3 years rather than 2 years, to cushion the shock to businesses of additional costs.
Investment Income from Property
A new rate of income tax for property income will be introduced from April 2027. This will carry a premium of 2%. This means that:
- Basic Rate Taxpayers (20%) will pay 22% Property Income Tax.
- Higher Rate Taxpayers (40%) will pay 42% Property Income Tax.
- Additional Rate Taxpayers (45%) will pay 47% Property Income Tax.
