Autumn Budget 2025, Key Property Tax Changes Explained

The Autumn Budget 2025 introduces several confirmed changes that will affect property owners and landlords.

At Danehurst Estate Agents we want our clients across Dorset and the New Forest to have a clear, factual summary of what has been announced and when each measure will take effect.

High Value Council Tax Surcharge on homes over £2,000,000

From April 2028 a new High Value Council Tax Surcharge will apply in England to residential properties valued at £2,000,000 or more.

The surcharge:

• Applies to residential properties valued at £2,000,000+

• Is charged in addition to existing council tax

• Will be based on updated valuations carried out before 2028

• Is payable by the owner of the property

• Will be banded, with annual charges starting at £2,500 and rising to £7,500 for properties valued above £5,000,000

This is an ongoing annual charge. If a property meets the qualifying value threshold, the owner at the time will be liable from April 2028 onwards, regardless of when the home was purchased.

Changes to income tax on rental property from April 2027

From 6 April 2027 the Government will introduce separate tax rates for property income, such as net rental profits after allowable expenses.

The new property income tax rates will be:

• 22% basic rate

• 42% higher rate

• 47% additional rate

These apply to property income in England, Wales and Northern Ireland. Many landlords will see higher tax liabilities on rental profit, so it will be important to review figures with a tax adviser before April 2027.

Stamp Duty Land Tax remains unchanged

The Budget makes no changes to the standard residential Stamp Duty Land Tax bands or thresholds. Home movers and first time buyers will continue to pay SDLT in the same way as before the Budget.

What this means for Dorset and the New Forest

The impact will vary across Dorset and the New Forest. Key points for local homeowners and investors:

• Owners of properties valued at £2,000,000+ will face an additional annual charge from April 2028

• Landlords will see tax on rental income increase from April 2027

• Stamp duty remains unchanged for standard residential purchases

How Danehurst can assist

We provide clear and practical guidance to help clients navigate these changes. Whether you are planning to sell, buy or review your investment position, Danehurst Estate Agents offer informed advice based on local market knowledge.

For guidance on how the new rules could affect your next move, contact Danehurst Estate Agents on (01202) 289000 or email info@danehurstea.co.uk