Our Property Insight series invites our agents to share what’s happening in the Midlands commercial property and land markets. In this Q4 edition, our Director, Trevor Wells previews potential headlines from next week’s Autumn Budget and where landowners need to take action…
Capital Gains Tax
There had been much media speculation that Capital Gains Tax (CGT) was going to be aligned with income tax, which was met with deep concern from many in the city and financial sector. However, Chancellor Healey has since dismissed calls to make such a move[1], confirming he wants to be “a Chancellor who backs business in Britain making a profit”. Whilst the intention is admirable, we must remain cautious about this simply being a short-term measure and ask the question, where does he intend to find the deficit from? Time will tell next week.
Land Value Tax
Mr Burnham has recently suggested that the UK’s property tax system is outdated and has expressed support for a land value tax. With stamp duty already a huge disincentive to transact in property, the threat of a new property tax will add further hesitancy to the market.
Your First Home
Announced ahead of last month’s Labour Party Conference, Your First Home is supposed to drive the first-time buyer market. But with scant details confirmed on how this will work in practice, it seemingly doesn’t go far enough. With 5-year mortgage fixes approaching 6%, something significant is required to reinvigorate the market and encourage people to buy their first home.
Local Plans
With the Local Plan cycle facing a deadline of 31 Dec 2026 for examination, and any new plans going forward are likely to take years to evolve, taking action now to promote your land for development is the smart strategy. Speak to your land agent about using tax freezer clauses to address concerns over potential taxation.
Inheritance Tax
There is the potential for change to IHT in the Autumn Budget, so land and property owners would be prudent to seek valuation advice and do some tax analysis. Many landowners are simply unaware of what the financial burden would be in the event of their untimely death, so it’s important to start these conversations now to mitigate against IHT issues.
With the government gilt yield hitting a 28 year high[2], and significantly surpassing the market reaction following Liz Truss’ budget, the markets are reacting badly to the high levels of borrowing and recent Labour Party Conference speeches. While the full breakdown of the Autumn Budget is yet to be announced, it is hoped there will be a focus on policies that stimulate growth rather than punish success.
For advice on your land and property portfolio, contact Trevor on 01455 559030.
[1] https://www.bbc.co.uk/news/articles/c50me4w4x1vyo
[2] https://www.telegraph.co.uk/business/2026/10/07/uk-borrowing-costs-hit-28-year-high-in-fresh-bond-rout/
