Budget 2026 property tax changes: stamp duty, rent, CGT and the mansion tax
Stamp duty and capital gains tax rates did not change. Tax on rental profit rises again from April 2027. The lifetime limit on Business Asset Disposal Relief halves. And homes worth £2 million or more face a yearly surcharge from April 2028.
Published , the day of the Budget. Every Budget figure links to the official document it comes from. General information, not tax or financial advice.
Budget 2026 guides: All 21 points · Tax · Building and buying · Landlords
Did stamp duty change?
No. The rates stay the same, and so does the 5% surcharge on extra homes.
Three small rule changes apply in England and Northern Ireland:
- No stamp duty on rent paid under assured tenancies, which covers most private tenancies. This applies in England, from 1 May 2026.
- A new relief for council pension funds that pool their debt assets. It runs from 28 October 2026 to 31 March 2032.
- Tighter group relief, the relief for moving property between companies in one group. This applies from 29 October 2026.
Source: Budget 2026, paras 6.236 to 6.237 and para 6.169.
Did capital gains tax change?
No. The rates stay at 18% and 24%.
Two reliefs change. The Business Asset Disposal Relief limit halves (see below). A new 10% Founders' Relief starts in April 2027, for founders of fast-growing, innovative companies.
Source: Budget 2026, paras 6.257 and 6.261.
How much tax will I pay on rent from April 2027?
From 6 April 2027, tax on rental profit rises to 24%, 44% or 49%. Today it is 20%, 40% or 45%.
That is 4 points more at every income band. Budget 2025 added 2 points. This Budget adds 2 more. It applies in England, Wales and Northern Ireland.
| Band | 2026-27 | From 6 April 2027 |
|---|---|---|
| Basic rate | 20% | 24% |
| Higher rate | 40% | 44% |
| Additional rate | 45% | 49% |
The tax credit for mortgage interest rises to 24% too (see the landlords guide). Own through a company? You pay corporation tax instead, so this rise does not apply.
Source: Budget 2026, para 2.50 and para 6.246; policy costings, p.74.
Does the rise hit limited companies?
No. Companies pay corporation tax, and the main rate stays capped at 25%.
The 19% rate on small profits is unchanged. Two reliefs change. The writing-down allowance, yearly tax relief on equipment, falls from 14% to 12%. That starts in April 2027. First-year relief on new equipment rises from 40% to 50% from 1 January 2027.
Source: Budget 2026, para 2.54 and para 6.251.
Selling your company? What changes?
The lifetime limit on Business Asset Disposal Relief halves to £500,000 from 6 April 2027. This relief taxes qualifying gains at 18% when you sell a business.
It is for trading businesses. A company that builds homes to sell can qualify. A company that mainly lets property normally cannot. The usual conditions apply.
Source: Budget 2026, para 6.261.
What is the mansion tax, and who pays it?
Homes in England worth £2 million or more face a yearly surcharge from April 2028. Owners pay £2,500 to £7,500, on top of council tax.
Values are set at April 2026. You will see your draft band in autumn 2027. Councils send the first bills in March 2028, for the year from April. Charges rise with inflation from 2029-30.
| Home value (April 2026) | Surcharge a year |
|---|---|
| £2m to £2.5m | £2,500 |
| £2.5m to £3.5m | £3,500 |
| £3.5m to £5m | £5,000 |
| £5m and over | £7,500 |
- Owners pay, not tenants.
- Developers pay up to 100% less on new homes they still own. This lasts until the first sale, or 12 months after completion, whichever is sooner.
- Homes left empty and unfurnished for 12 months or more pay double.
- Some owners can put off paying until the home changes hands. It covers households with income of £35,000 or less. It also covers savings of £16,000 or less, or a disability. Interest is charged, at a rate set in regulations.
Source: HVCTS factsheet; government response, para 5.10; Budget 2026, para 6.234.
Is there VAT on land sold for social housing?
Not from 1 April 2027. Land sold to housing associations that are registered providers will carry 0% VAT.
The Budget also adds £1.5 billion for social and affordable homes. That should fund about 10,000 more.
Source: Budget 2026, para 6.238 and para 6.114.
What would a property really cost you?
A Buyer Intelligence Report shows what a home or plot is worth. It also shows what it costs you to buy, including stamp duty. Homes and land in England and Wales.
Not happy? Ask for a refund within 7 days of delivery, before you exchange contracts or bid.
Sources
- Budget 2026 (the Red Book), HM Treasury, 28 October 2026
- Economic and fiscal outlook, October 2026, Office for Budget Responsibility
- Budget 2026 policy costings, HM Treasury
- Your First Home and High Value Council Tax Surcharge factsheets, GOV.UK
Checked against the published documents on . Details can change as legislation is drafted, so check the latest guidance or speak to a qualified adviser before acting. Spotted an error? Email [email protected].
Budget 2026 guides: All 21 points · Tax · Building and buying · Landlords