Property professionals are reassured that the Autumn Budget has given the industry some certainty \u2013 by not making any seismic changes.<\/p>\n
The budget saw the planned introduction of a \u2018council tax surcharge\u2019 (mansion tax) from 2028, on properties worth over \u00a32 million. The surcharge will be \u00a32,500 for a property worth between \u00a32m to \u00a32.5m, eventually rising to \u00a37,500 for those worth more than \u00a35m.<\/p>\n
The government also looked to increase taxation of rental income by 2% from 2027.<\/p>\n
Tom Adams, chief executive at property consultancy RedBook Agency, said: \u201cThis budget is more reassuring than many anticipated. Yes, the new mansion tax introduces an additional annual cost, but at the level announced, it should have a limited practical impact on the luxury project market we operate in.<\/p>\n
\u201cThe latest RBi shows that 82% of projects are refurbishments rather than new builds, motivated by long-term lifestyle decisions rather than short-term financial considerations, meaning the modest annual levy will not materially change plans already in motion.<\/p>\n
\u201cOverall, this is a Budget that introduces some friction but avoids the kind of heavy-handed measures that could have materially undermined confidence. It provides a degree of clarity, and in our world, clarity goes a long way.\u201d<\/p>\n
The Chancellor decided against changing stamp duty despite reports the government was considering switching it to a sellers or annual tax.<\/p>\n
\t <\/p>\n
Jonathan Turner, partner at law firm Morr & Co, said: \u201cStamp duty land tax (SDLT), a lever pulled by nearly all chancellors, seems to have been left alone on this occasion. <\/p>\n
\u201cIt is a relief that the SDLT regime isn\u2019t being changed which would create yet another unnecessary artificial bubble, but it is also a missed the opportunity to simplify this tax, which used to be simple, but now very often needs specialist tax advisors to ascertain the correct rate payable, with penalties should HMRC not agree that that their often woolly guidance has been met.\u201d<\/p>\n
Turner added: \u201cLike the monster under the bed, the prospect of mansion tax or high value council tax surcharge from April 2028 is unwelcome, but less terrifying when you know whether it is really there and what it looks like.<\/p>\n
\u201cThis recurring annual charge for properties over \u00a32m has been widely anticipated and has been lurking since the Corbyn years.\u201d<\/p>\n
\u201c\u2026This tax will trigger a surge in downsizing, which will saturate the market with valuable properties. In turn this will likely depress values overall, thus decreasing the \u2018mansion tax\u2019 income to the government.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Property professionals are reassured that the Autumn Budget has given the industry some certainty \u2013 by not making any seismic changes. The budget saw the planned introduction of a \u2018council tax surcharge\u2019 (mansion tax) from 2028, on properties worth over \u00a32 million. The surcharge will be \u00a32,500 for a property worth between \u00a32m to \u00a32.5m, […]<\/p>\n","protected":false},"author":1,"featured_media":5901,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-5900","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-second-home"],"yoast_head":"\n