The Chancellor’s Autumn Budget landed on 26 November 2025 with plenty of festive wrapping. For those managing commercial property in England and Wales, is it more Christmas cheer or a stocking full of coal? Brodies unwraps the highlights.
The Elf’s Gifts: Incentives and Relief
Let’s start with the good news. Business rates reform is finally moving from wish list to reality. From April 2026, a more progressive “slice” system will apply, easing the burden on smaller properties and rewarding investment in green upgrades. For retail, hospitality and leisure, the Chancellor confirmed lower business rates. This will provide a welcome boost for landlords with mixed-use portfolios.
Capital allowances also got a sprinkle of magic dust. From January 2026, a new 40% first-year allowance will apply for unincorporated businesses, alongside extended relief for zero-emission vehicles and chargepoints. For property managers planning sustainability upgrades or EV infrastructure, this could be the nudge needed to increase investments and accelerate projects.
Stamp Duty Land Tax (SDLT) didn’t see a major overhaul, but the Finance Bill 2026-27 will include SDLT relief for property being transferred within Local Government Pension Schemes.
Scrooge’s Surprises: Taxes and Squeezes
But before we pop the champagne, there’s a chill in the air. Writing-down allowances will fall from 18% to 14% in April 2026, reducing relief on plant and machinery. This is a blow for those budgeting for major refurbishments.
What Does This Mean for You?
For proactive property managers, the Budget offers opportunities to invest in sustainability and future-proof assets. Those who embrace green upgrades and EV infrastructure will find the Elf’s gifts generous. But for owners of prime assets or portfolios heavily reliant on rental income, Scrooge’s hand is firmly on the till.
As always, the devil is in the detail. Now is the time to review your property strategy, model the impact of these changes, and consider whether investment today could offset the tax burden of tomorrow. If you have any queries about how the Budget might affect you or your business, please contact a member of the Real Estate Dispute Team or your usual Brodies contact.
