The Autumn Budget is on Wednesday 28th October, exactly a week away, and landlord forums are already full of predictions. Some of them are well founded. Plenty are guesswork. This guide sorts the two, so you can plan calmly instead of reacting to every headline. It is the first Budget under Prime Minister Andy Burnham and Chancellor John Healey, which is part of why so much is being second-guessed.
What is already confirmed
Whatever is announced on the 28th, some changes are already in the pipeline.
- Higher property income tax from April 2027: tax rates on rental profits are due to rise by two percentage points for landlords who hold property in their own names. Rental income will be taxed more heavily than wages.
- Frozen tax thresholds until 2031: rents are rising and thresholds are not, so more basic-rate landlords may find part of their profit taxed at the higher rate.
- Making Tax Digital: digital record keeping and quarterly updates already apply to landlords with income above £50,000, and the threshold drops to £30,000 from April 2027. Our guide to Making Tax Digital for landlords covers what to do.
- The high value council tax surcharge: homes in England worth over £2 million face an annual charge of between £2,500 and £7,500 from April 2028. It will not affect most landlords, but it matters if you hold higher value stock.
What is speculation
Here is where we need a gentle reminder that none of the following is policy yet.
Capital gains tax alignment
The Prime Minister has said he wants to look in detail at bringing capital gains tax closer to income tax. Residential property gains are currently taxed at 18% for basic-rate taxpayers and 24% for higher and additional-rate taxpayers. Alignment would mean a higher-rate landlord with a £50,000 gain paying roughly £20,000 instead of £12,000. That is a big shift, and it is the change most likely to influence when landlords decide to sell. If you are weighing up a sale, our guide to capital gains tax when selling a buy-to-let explains how the current rules work.
Stamp duty
The government has ruled out scrapping stamp duty this time, and has also rejected reports that stamp duty and council tax could be replaced by a single annual property tax. The surcharge on additional homes, currently 5%, is the part some commentators think could creep up. For a refresher on the current rules, see our explainer on stamp duty reform.
Inheritance and property
Ideas floated include changing how inherited property is treated for capital gains, so that past gains no longer disappear on death. Commentators describe this as an option rather than a plan. A lower threshold for the council tax surcharge, down to £1.5 million, has also been reported but not confirmed.
Why it matters for the rental market
Landlords are already under pressure from higher mortgage costs, new compliance duties and rising tax. Another squeeze can push some to sell or raise rents, and with listings of landlord portfolios already visible in the market, supply is a real concern. We looked at this in our piece on buy-to-let consolidation and landlord exits. For tenants, that tends to mean fewer homes and higher rents. For landlords who stay, it means running the numbers more carefully than before.
Seven sensible steps before the 28th
1. Do not rush a sale: Selling in a panic before you know the rules can be as costly as waiting. Nothing announced on the day normally takes effect that afternoon, and the detail often arrives later.
2. Know your numbers: Work out your net yield after mortgage interest, fees and tax at today's rates and at rates two points higher.
3. Check how you hold the property: Personal ownership and limited company ownership are taxed differently. Get advice before changing anything, because moving property into a company can trigger its own tax bills.
4. Get your records in order: Clean digital records help with Making Tax Digital and make any future sale or valuation much easier.
5. Review your mortgage: If your deal ends soon, start comparing now. Rates move as markets react to Budget news.
6. Keep an eye on your costs: Compliance, repairs and agent fees all feed into profit. Compare what you pay for management against what you get.
7. Speak to an accountant: A short conversation with a property-savvy accountant after the Budget is worth far more than a week of forum scrolling.
Keeping costs down while you wait
Tax is the part you cannot control, but agent fees are. If you want a new tenant without a long-term commission, our tenant find service is a flat-fee option. If you would rather hand over the day-to-day, our fully managed service keeps compliance and maintenance in hand. And if the Budget tips you towards selling, Moovehub can sell your home for a flat fee. Our earlier Autumn Budget preview has more background.
The short version
Higher tax on rental profits is already coming, and the rest is mostly rumour. Plan for the confirmed changes, keep an open mind on the speculative ones, and wait for the detail on the 28th before you make big decisions. This post is general information, not tax advice.
