Budget 2025 – how has real estate fared?

After all the months of speculation, leaks and briefings on what measures might be included by the Chancellor, here are the headlines for real estate: 

Annual property or ‘Mansion’ tax

Technically, a High Value Council Tax Surcharge (HVCTS) @

• £2,500 annually for properties worth more than £2m

• £7,500 annually for properties worth more than £5m

It will be collected with council tax from April 2028 on updated property valuations and estimated to impact the top 1% of properties.  It will be levied on owners not occupiers, and collected by Local Authorities. A consultation will be issued in the New Year on detailed implementation, and to identify who might need additional support to pay the surcharge.  

Taxation of landlords' income from property

There will be a separate tax rate for property income from April 2027. The property basic rate will be 22%, the property higher rate will be 42%, and the property additional rate will be 47%.   

Stamp Duty Land Tax in England

No headline changes announced

Business rates 

Lower tax rates for more than 750,000 retail, hospitality and leisure (RHL) properties, with multipliers at 5p below the national equivalents, funded through higher rates of 2.8p above the national standard multiplier on properties worth £500,000 or more, such as warehouses used by online retailers.  A 10 year 100% relief for eligible Electric Vehicle charge points and EV-only forecourts. 

We will consider these announcements and may report in more detail after consideration of the associated tax information and impact notes, but please do reach out to your usual contact at Burges Salmon if you have any queries.