Besides the new property income tax rates detailed in the taxes on income section, another change affecting property is the introduction of a high value council tax surcharge, otherwise known as the ‘mansion tax’.  The surcharge will be in addition to existing council tax and will be applied to properties with a value over £2 million.

The mansion tax will range from £2,500 to £7,500 depending on the property’s value.  Properties will be valued before the introduction of the tax. The mansion tax is applied to the homeowner and not the council tax payer.

Both of these measures will mean an increase in costs for landlords, and therefore likely an increase in rents for tenants.

If you are a landlord or a tenant and are concerned about either of these increases, please do contact us to discuss your options.

STAMP DUTY LAND TAX

England and Northern Ireland

If you are planning to purchase residential property, the good news is that there were no changes to stamp duty land tax (SDLT) announced in the Autumn Budget. The main threshold above which you start to pay SDLT remains at £125,000 and you will still pay the higher rate of SDLT on additional dwellings you buy such as second homes.

If you are a first-time buyer, you are still eligible for additional relief from SDLT on your property purchase. No SDLT is payable up to £300,000 for first-time buyers, with 5% SDLT payable on properties between £300,000 and £500,000.

Scotland and Wales

Property purchasers in Scotland and Wales do not pay SDLT. Rather, if you buy a property in Scotland, you pay land and buildings transaction tax, and in Wales, you pay land transaction tax. These Scottish and Welsh rates remain unchanged.

COMPANIES

Rates from 1 April 2026

There are no changes to corporation tax rates and thresholds for the financial year commencing 1 April 2026. These include the main rate of 25% for companies with profits over £250,000 and a small profits rate of 19% available to companies with profits below £50,000; a marginal rate of 26.5% applies to profits between the limits. If a company is part of a group or has associated companies, those profit limits are divided between them.

Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCT)

From 6 April 2026, significant increases to the limits for companies to be eligible for EIS and VCT schemes are proposed as follows:

  • The gross assets test will increase from £15 million to £30 million immediately before share issue and from £16 million to £35 million immediately after the issue.
  • The annual investment limit for companies will be increased from £5 million to £10 million (from £10 million to £20 million for Knowledge-Intensive Companies (KICs)).
  • The lifetime investment limit will increase from £12 million to £24 million (from £20 million to £40 million for KICs).

At the same time, the rate of income tax relief available to an individual investor in a VCT will be reduced from 30% to 20%; this change does not apply to the EIS.