Chancellor John Healey delivered his first Autumn Budget on 28 October 2026. In our pre-Budget briefing we noted that no property measures were confirmed until the statement was made. They now are. The headline for landlords is a further rise in the tax on property income, while stamp duty rates were left unchanged.
In short: From 6 April 2027, property income will be taxed at 24% (basic), 44% (higher) and 49% (additional) rate. Companies paying corporation tax are not affected by that change. No headline changes were made to Stamp Duty Land Tax rates. A new £4.7bn equity loan scheme for first-time buyers was announced, and the High Value Council Tax Surcharge will apply in England from April 2028.
What changed for landlords?
The Budget adds a further 2 percentage points to the separate rates of income tax on property income, taking effect from 6 April 2027. According to the CMS summary of the real estate measures, the rates will be:
- Basic rate: 24%
- Higher rate: 44%
- Additional rate: 49%
The increase applies to individuals. Companies are unaffected because they pay corporation tax, although the change does apply to withholding on REIT property income distributions.
What stayed the same?
Ahead of the Budget, the Prime Minister had ruled out changing or scrapping stamp duty, and no headline change to SDLT rates was announced. Technical SDLT measures were confirmed, including tighter group relief clawback rules from 29 October 2026 and the removal of SDLT on rent under assured tenancies in England from 1 May 2026, following the Renters’ Rights Act 2025.
Other measures relevant to property
First-time buyers
As reported by Propertymark, a £4.7bn “Your First Home” equity loan scheme will offer 20% equity loans with a five-year interest-free period. Pre-registration is due to open by the end of December 2026, with the first loans from April 2027.
High-value homes
The High Value Council Tax Surcharge will apply in England from April 2028 to residential properties worth £2 million or more, with annual charges from £2,500 to £7,500 depending on value band.
Capital allowances and business rates
The main rate first-year allowance rises from 40% to 50% for expenditure from 1 January 2027. Small Business Rates Relief thresholds in England rise to £18,000 for full relief and £21,000 for tapered relief from April 2027.
Capital gains
The lifetime limit for Business Asset Disposal Relief falls from £1 million to £500,000 for qualifying disposals from 6 April 2027.
Why does this matter for short-term property finance?
Tax changes with a fixed start date can influence when owners choose to buy, sell or refinance. Some landlords may review how their portfolios are held, or bring forward disposals or purchases ahead of April 2027. Transactions of this kind often run to tight timetables, and the funding arranged needs a clear, documented exit. Anyone considering a change of ownership structure should take independent tax and legal advice first.
Frequently asked questions
Did the Autumn Budget 2026 change stamp duty?
No headline changes were made to Stamp Duty Land Tax rates. Technical changes were confirmed, including to group relief and to SDLT on rent under assured tenancies.
What are the new property income tax rates?
From 6 April 2027, property income will be taxed at 24% (basic), 44% (higher) and 49% (additional) rate.
Are limited companies affected by the property income tax rise?
No. Companies pay corporation tax, so the change to income tax rates on property income does not apply to them.
When does the High Value Council Tax Surcharge start?
It applies in England from April 2028 to residential properties worth £2 million or more.
Important information
Ponte Finance PLC is a private lender, not a bank, and is not authorised or regulated by the Financial Conduct Authority. Lending is for business purposes only and is not available to consumers or for property occupied, or to be occupied, by the borrower or a family member as a home. All loans are secured against property, and the property may be repossessed if repayments are not maintained. This article is for general information only and reflects publicly available data at the date of publication. It does not constitute an offer of finance, a forecast, or financial, investment, tax or legal advice. Ponte Finance PLC is registered in England and Wales, company number 15859004, registered office 225 Clapham Road, London SW9 9BE.