Besides the new property income tax rates detailed in the taxes on income section, another change affecting property is the introduction of a high value council tax surcharge, otherwise known as the ‘mansion tax’.  The surcharge will be in addition to existing council tax and will be applied to properties with a value over £2 million.

The mansion tax will range from £2,500 to £7,500 depending on the property’s value.  Properties will be valued before the introduction of the tax. The mansion tax is applied to the homeowner and not the council tax payer.

Both of these measures will mean an increase in costs for landlords, and therefore likely an increase in rents for tenants.

If you are a landlord or a tenant and are concerned about either of these increases, please do contact us to discuss your options.