UK Budget Oct 28: Stamp Duty Safe, Mansion Tax Threshold Debated

Chancellor John Healey delivers his first Autumn Budget on Wednesday, October 28. Property is one of the most speculated areas. Here is what is settled, what is ruled out and what is still rumour.

[UPDATE] Replace this preview with the actual announcements after the speech.

What has been ruled out?

Prime Minister Andy Burnham, who took office on July 20, has ruled out changing or scrapping stamp duty in this Budget. Asked about it on July 27, he said that would not happen, and reports that stamp duty and council tax would be merged into one annual property tax were rejected at this stage.

What is already scheduled?

• Mansion tax (High Value Council Tax Surcharge): from April 2028, homes worth £2 million or more in England pay £2,500 to £7,500 a year on top of council tax
• Stamp duty today: the standard threshold in England and Northern Ireland is £125,000, and eligible first-time buyers pay nothing on the first £300,000 and 5% on £300,000 to £500,000. The 5% surcharge on additional homes stays

What is still in play?

• Mansion tax threshold: a rumoured cut from £2 million to £1.5 million. The Times reported the Chancellor has ruled that out after opposition from Labour MPs
• Smaller tweaks: options include extending stamp duty to transfers of shares in property-rich companies, tightening the rule that treats purchases of six or more homes as non-residential, and changes to council tax bands, which still rest on 1991 values
• Bigger reform: a land value or flat-rate property tax is discussed but would need consultation and a long lead-in

Why does it matter for buyers?

Speculation is already affecting decisions: agents report property-tax uncertainty weighing on buyers. Just 41% of homes in England are now stamp duty free for first-time buyers, down nine percentage points in five years.