Despite weeks of speculation, the Chancellor’s speech contained no changes to Stamp Duty and, disappointingly, no announcement on LHA rates , which remain frozen. However, Rachel Reeves, MP, has pushed ahead with plans for a ‘mansion tax’ on properties worth over £2 million, an increase in property income tax, and increases to the National Minimum Wage.
The Budget confirms a 2% increase to the basic, higher, and additional rates of property income tax from April 2027. The new rates will be 22%, 42%, and 47% respectively.
Furthermore, regional mayors will gain powers to introduce an overnight visitor levy, like schemes planned in Wales (£1.30 per night) and Scotland (5% of accommodation cost). A consultation will follow on how the levy should be designed.
This follows various measures over the past 10 years that have also reduced returns to private landlords (e.g., changes to mortgage interest relief, the stamp duty land tax surcharge, capital gains tax allowances, and the introduction of the Renters’ Rights Act).
If you are a private landlord and want to know more about how the Autumn budget may affect you please contact Lee Bilbrough – lee@purepropertylettings.co.uk