The latest Autumn Budget property tax changes may not have delivered the dramatic reforms many expected, but for landowners and property investors, the detail tells a far more important story. Behind the headlines of economic stability and public service funding lies a clear shift toward increased taxation of property-related wealth — a trend landowners cannot afford to ignore.
While much of the media attention focused on the OBR’s accidental early release, the Budget itself signals tightening rules, higher taxes and greater scrutiny for those holding land and high-value property.
Capital Gains Tax Increases on Property
One of the most significant Autumn Budget property tax changes is the rise in Capital Gains Tax (CGT) on property income. From April 2027, CGT rates will increase by two percentage points:
- Basic-rate taxpayers: 22%
- Higher-rate taxpayers: 42%
- Additional-rate taxpayers: 47%
At the same time, reliefs on gains from high-value private residences are being scaled back. This move is clearly aimed at affluent homeowners, investors and landowners with significant unrealised gains. For anyone considering selling land or property, timing is now critical.
New Council Tax Surcharge on High-Value Homes
Another key element of the Autumn Budget property tax changes is the introduction of a new council tax surcharge on homes valued over £2 million, effective from April 2028.
Annual charges are expected to range from £2,500 to £7,500, depending on property value. This additional cost is likely to influence decisions around retaining or disposing of high-value assets, particularly in prime and rural locations where land values have risen sharply.
Stamp Duty Land Tax: A Pause, Not a Reversal
Stamp Duty Land Tax (SDLT) remains unchanged for now, but the Budget has fuelled speculation around future reforms. Rather than relying on one-off transactional taxes, the government appears increasingly open to recurring property-based levies.
While this approach could benefit first-time buyers in the short term, it signals a longer-term shift that landowners and investors should factor into their planning decisions.
What the Budget Means for Selling Land
For landowners considering a sale, the Autumn Budget property tax changes underline the importance of forward planning.
Business Asset Disposal Relief (BADR) still offers a preferential 10% CGT rate on qualifying gains up to £1 million, but this will rise to 18% by April 2026. Selling before this change takes effect could secure substantially more favourable tax treatment.
Rollover relief also remains available, allowing landowners to defer CGT by reinvesting proceeds into qualifying assets within the one-to-three-year window surrounding a sale.
A Clear Direction of Travel for Property Taxation
Taken together, these Autumn Budget property tax changes reflect a broader Labour trend toward taxing property and land wealth more aggressively. For owners of strategic land, the challenge is no longer just about planning and development — it is about aligning those decisions with an evolving tax landscape.
Well-timed, informed decisions made now will have a lasting impact on long-term returns.
Expert Support for Landowners
At Muller, we work with landowners to unlock development opportunities and secure planning consent at our cost and risk, not yours. We combine planning expertise with a clear understanding of the tax and policy environment, helping landowners make confident, commercially sound decisions.
If you’re considering selling land or want to understand how the Autumn Budget property tax changes could affect you, speak to our in-house experts today and explore your options.
