For landlords and property-based businesses, tax and regulatory costs continue to rise. Planning now needs to account for longer-term affordability, not just short-term compliance.
Property-related tax increases
Alongside new property income tax rates, a high-value council tax surcharge will apply to properties valued over £2 million.
The surcharge will range from £2,500 to £7,500 depending on property value and will apply to the homeowner. These additional costs are likely to feed through into rents and returns.
VAT thresholds remain frozen
The VAT registration threshold remains at £90,000, with deregistration at £88,000.
As turnover increases with inflation, more businesses are being pulled into VAT earlier, often without a corresponding increase in profitability.
Business rates changes for retail, hospitality and leisure
From April 2026, new lower multipliers will apply to eligible retail, hospitality and leisure properties with rateable values below £500,000.
These replace the temporary reliefs available in 2025/26. Transitional reliefs and small business support schemes may still apply in some cases.
Visitor levy consultation
A consultation is underway on allowing local authorities in England to introduce a visitor levy on overnight stays in commercially let accommodation.
There are no immediate changes, but accommodation providers should monitor developments closely.
Planning for rising fixed costs
For landlords and property-based businesses, cost increases are increasingly structural rather than temporary.