Only a minority of the tax reforms in this year’s Autumn Budget were aimed at the built environment with other, more eye-catching proposals elsewhere, for example a new CGT “founders” relief and changes to the rules for employee share schemes and venture capital.
The theme of residential accommodation continued with property tax measures aimed at miscellaneous aspects of this part of the sector:
Removal of SDLT with effect from 1 May 2026 in respect of assured tenancies, following earlier changes introduced by the Renters’ Rights Act 2025 which would, in permitting for lease extensions, have potentially brought more tenants within the scope of SDLT.
Confirmation of the introduction of, and tweaks to the rules which will be applicable to, the High Value Council Tax Surcharge to be introduced in Finance Bill 2026/2027.
An increase of 3.5% in the annual charges arising under ATED (Annual Tax on Enveloped Dwellings) in line with inflation.
From April 2029 there’s to be a new First Time Buyer ISA, providing a 25% government bonus (capped at £20,000) on withdrawal of funds to purchase a house up to £450,000.
Changes to SDLT group relief
Elsewhere the government appears to be concerned about the potential manipulation of SDLT group relief – and is legislating with effect from 29 October 2026 to change the SDLT group relief rules to “ensure that relief is withdrawn as intended when a purchaser leaves a corporate group, where the vendor company has been wound up.” The SDLT group relief rules can already be surprisingly complex in some scenarios, so new legislation in this specific area of the SDLT code isn’t terribly welcome and further complicates this heavily used corporate relief.
Capital allowances changes
Finally, there are changes to the % rates of relief available in respect of P&M capital allowances, with the main rate of allowances to be reduced and increased first year allowances. This is relevant to P&M fixtures, and both the possible financial benefit to a property owner as well as the value potentially attributable to allowances available on a transfer of a property.
Visit our built environment blog for more key information on the Autumn Budget 2026.
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