There has been much speculation ahead of the Autumn Budget 2025 about possible changes to property taxes. Nothing is confirmed yet, but the government is under pressure to raise revenue, and property is firmly in the spotlight.
What might change in the Autumn Budget?
Stamp Duty replacement
The government is reported to be considering scrapping Stamp Duty Land Tax (SDLT) on homes worth up to £500,000 and introducing a new national property tax for higher-value homes.
If introduced, this could make it easier for first-time buyers and movers at the lower end, but more expensive for buyers in London and the South East. Any changes to the existing SDLT regime would hopefully be phased carefully to keep transaction flows steady.
Capital Gains Tax on main homes
At present, when you sell your own home, you do not pay Capital Gains Tax (CGT). One idea being discussed is to remove this exemption for homes worth more than £1.5 million. This would mean some owners could face a tax bill of 18–24% on the gain when selling.
Landlord Tax changes
Landlords may be asked to pay National Insurance contributions on rental income, possibly around 8%. This could make renting out property less profitable and may feed through into higher rents. It may also trigger more investors exiting the market.
Council Tax reform
Council Tax is based on property values from the early 1990s. A move to a modernised property tax, based on today’s values, is being discussed. This could see bills rise for people in high-value homes, particularly in London and the South East, while bills in some regions may fall.
What does this mean for you?
Homeowners: If you live in a high-value property, especially over £1.5 million, it may become more expensive to sell in the future. Some may consider bringing forward sales before any new rules take effect.
Buyers: If you are purchasing a property under £500,000, changes could work in your favour. But uncertainty in the market may mean sellers delay listing until the Budget in November.
Landlords: Extra taxes could reduce rental income. You may want to review your portfolio now and consider whether it still works financially if such changes come in.
All consumers: It’s important to keep in mind that these are still only rumours. No one will know for certain until the Chancellor delivers the Budget on the 26 November. For now, it is sensible to stay informed but avoid making big decisions based on speculation alone.
Tips for now
- Keep an eye on the Budget announcements.
- If you are planning to buy or sell soon, be prepared for short-term market disruption.
- Landlords should budget cautiously in case additional charges are introduced.
- Seek professional tax, legal and/or financial advice before taking action — especially if your property value or rental income could be affected.
If you wish to speak to us about any of the above, please contact our team.
Important Note
The information contained within this document is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.
This article is distributed for educational purposes only. This communication does not constitute financial advice. Individuals must not rely on this information to make a financial or investment decision. Before making any decision, we recommend you consult your financial planner to take into account your particular investment objectives, financial situation and individual needs.
The opinions stated in this document are those of the author and do not necessarily represent the view of Progeny and should not be relied upon to make a financial decision.
Information contained herein has been obtained from sources believed to be reliable but is not guaranteed.
Please note
Tax treatment depends upon individual circumstances and is based on current UK tax legislation, that is subject to change at any time.
