Chancellor Rachel Reeves delivered her second Autumn Budget on 26 November 2025, and there had been plenty of speculation beforehand about potential changes to property taxes. Talk of stamp duty reforms, capital gains tax on main residences, and various property levies had homeowners and buyers worried about what might be coming.
The reality was far less dramatic than the headlines suggested. Whilst one change was introduced for high-value property owners, the feared overhaul of property taxation simply didn’t happen. This blog explains what actually changed and, just as importantly, what stayed the same.
What has changed: the high-value property surcharge
The main property-related change is a new council tax surcharge on properties valued over £2 million, starting in April 2028. This has been coined the ‘mansion tax’. This affects fewer than the top 1% of homes and is expected to raise £0.4 billion by 2029-30.
The surcharge applies to properties worth £2 million or more. Properties above this threshold will be put into categories based on property value, and will pay a recurring annual charge. For properties worth between than £2 million and £2.5 million, they will need to pay £2,500, rising to £7,500 for properties more than £5 million.
For those who might be affected, the 2028 start date gives you time to plan. However, there are genuine concerns about how this will work for people who are asset-rich but cash-poor. Older homeowners who’ve lived in family homes for decades may face annual charges they struggle to afford.
If you own a high-value property, it’s worth getting advice before 2028. You’ll have time to understand your options and make sensible decisions about your property and estate planning.
What hasn’t changed: the good news
Stamp Duty remains the same
Despite all the speculation about stamp duty being scrapped or reformed, nothing has changed. Rates and thresholds remain exactly as they were.
For first-time buyers, you still pay no stamp duty on properties up to £300,000 (for properties costing up to £500,000). For everyone else, the threshold remains at £125,000. The 5% surcharge on second homes and buy-to-let properties, which increased in last year’s Budget, still applies.
This means no surprises if you’re going through a property transaction now or planning to buy soon. You can budget with certainty.
No Capital Gains Tax on main residences
One of the biggest worries was that the Chancellor might introduce capital gains tax on main residences, particularly for high-value properties. There was talk of CGT being charged on homes sold for over £1.5 million or £2 million.
This didn’t happen. Principal Private Residence Relief is still fully in place. When you sell your main home, you pay no capital gains tax on it, whatever its value or how much it’s gone up since you bought it. That’s reassuring news for homeowners right across the country.
This relief has always applied only to your main residence. If you own a second home, holiday property, or buy-to-let, capital gains tax applies when you sell. The current rates are 24% for higher-rate taxpayers and 18% for basic-rate taxpayers. These were set in last year’s Budget and haven’t changed.
Moving forward: what you need to know
For buyers
If you’re planning to buy, you can budget based on current stamp duty rates without worrying about changes round the corner. Make sure you factor in all the costs: legal fees, surveys, and removal expenses, alongside stamp duty. Getting your finances sorted early and choosing an experienced conveyancing solicitor will help your purchase run smoothly.
For sellers
If you’re selling your main home, there are no capital gains tax worries. For those with properties valued over £2 million, the 2028 timeline for the new surcharge means there’s no immediate pressure, though it’s worth thinking about your long-term plans.
For landlords and investors
Buy-to-let investors and second home owners need to remember that capital gains tax still applies to investment properties at the rates set last year. If you’re planning to sell an investment property, factor in the CGT when working out your returns.
How we can help
Buying or selling property involves significant financial and legal considerations. At Slater Heelis, our Residential Property team keeps up with all policy changes and understands how market developments affect buyers and sellers. Whether you’re a first-time buyer, moving house, investing in property, or concerned about the high-value property surcharge, we’re here to give you straightforward, practical advice.
If you have questions about how the Autumn Budget affects your property plans, get in touch by filling out our online contact form or calling us on 0330 111 3131
Get In Touch
Zara Banday is the Head of our Residential Property team. She has over 20 years of experience in residential property work, including residential Landlord and Tenant work
If you have questions or concerns, we’re here to help. Get in touch with one of our solicitors by calling 0330 111 3131 or fill out our online contact form.
