BUDGET NEWS!! Rachel Reeves UK Budget and it was one of the most anticipated in living memory. Below is a summary of the two key points announced in today and a surprising announcement on stamp duty (SDLT) HIGHER TAXES ON RENTAL INCOME From April 2027, income tax rates on property income (i.e. from letting out property) will rise by 2 percentage points. Basic, higher and additional tax rates for landlords will become 22%, 42% and 47% respectively. NEW “MANSION TAX” / HIGH VALUE PROPERTY LEVY The Budget confirmed the introduction of a new annual surcharge on properties valued over £2 million. This surcharge will begin in April 2028, with a banded system: for example, homes valued between £2 m–£2.5 m face at least a £2,500 surcharge; the highest band (properties over £5 m) could pay as much as £7,500 per year. The surcharge is on top of standard council tax. The basis for valuation will be new 2026 valuations — not original purchase price. NO CHANGES TO STAMP DUTY! Despite speculation ahead of the Budget, no changes were made to Stamp Duty Land Tax (SDLT) for property purchases.