Mansion Tax increases predicted in upcoming Budget
Summary
The article reports speculation that the forthcoming Budget could increase the High Value Council Tax Surcharge, also referred to as the Mansion Tax, beyond the rates previously announced for properties worth £2 million or more in England. It also suggests possible changes to Capital Gains Tax that could affect landlords, while noting that a Stamp Duty cut appears unlikely.
Why it matters
Residential property surveyors may see increased sensitivity in the prime market if higher charges on high-value homes affect demand, pricing or transaction activity. Any tax changes affecting landlords or transaction costs can also influence market behaviour, rental supply and valuation assumptions.
Key points
- Knight Frank warns the High Value Council Tax Surcharge may be only an introductory rate.
- The surcharge is due from April 2028 and applies to homes worth £2 million or more in England.
- Potential higher taxes on high-value property could weigh on the prime London market.
- Possible alignment of Capital Gains Tax and Income Tax rates could affect landlords and rental supply.
- The article says a Stamp Duty cut would likely support the housing market, but this is not expected.
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