United Kingdom: Property Taxes

Starting a business is an exciting milestone. Yet while many entrepreneurs focus on their product, service, or big idea, the reality is that building a successful business requires much more than simply generating sales.

Andy Burnham's appointment as UK Prime Minister has reignited debate over property taxation reform, with historical advocacy for replacing council tax and stamp duty land tax with ownership-based levies. While recent statements suggest immediate abolition is off the table, the uncertainty surrounding potential shifts from transactional to land value or wealth-based taxation carries significant implications for commercial real estate strategy, development viability, and portfolio management.

The replacement of the Prime Minister between election cycles is commonplace in the UK parliamentary system. Five of the UK's six most recent PMs took over from the incumbent following an internal party election...

It is February 2026 and two people are sitting at the departure gate at Heathrow waiting for their (inevitably) delayed flight to the Bahamas. They start a conversation about why they are heading to this Caribbean island.

Just two days before Christmas, the UK Government announced an increase in the threshold for 100% relief for APR and BPR of £2.5 million (up from £1 million as first announced on 30 October 2024, see here).

The UK Autumn Budget 2025 introduced a new High Value Council Tax Surcharge (HVCTS), widely known as the "mansion tax", expected to take effect in April 2028.

Significant changes were introduced to the UK's tax rules for non-domiciled individuals from 6 April 2025. The remittance basis for non-UK domiciled individuals has been replaced with a residency-based system.

The standout item is the recent introduction of the Reserved Investor Fund, a new type of investment fund expected to be of particular interest to commercial real estate strategies.

From 1st April 2025, Stamp Duty rates are set to rise with the reduction of two key thresholds.