The Autumn Budget is on Wednesday 28 October 2026, the first from Chancellor John Healey, and the measures most likely to touch landlords are capital gains tax, the threshold for the new "mansion tax" and, once again, National Insurance on rent. None of those is confirmed. What is confirmed already, including higher tax on property income from April 2027, will happen whatever Healey announces, so plan around that and treat the rest as scenarios to price, not events to react to.
When is the Autumn Budget 2026?
Wednesday 28 October 2026. Healey announced the date on 31 July (GOV.UK), eleven days after becoming Chancellor when Andy Burnham took over as Prime Minister and Rachel Reeves left government. The Office for Budget Responsibility publishes its forecast the same day, and the Bank of England's next rate decision follows on 5 November.
The backdrop is tight. The Institute for Government noted on 7 September that the OBR's forecasts have probably worsened since March. The Times reported on 20 September that the Treasury is looking for around £10 billion. Ten-year gilt yields hit a 19-year high in September, and inflation was 3.1% in August with the Bank expecting it to pass 4% early next year.
Burnham has said he sticks by Labour's 2024 manifesto, which rules out raising National Insurance, VAT and the basic, higher and additional rates of income tax on working people. With those locked, extra revenue has to come from somewhere else: wealth, assets and property are the obvious candidates, and landlords sit in all three.
What is already confirmed for landlords?
These are legislated or formally announced and do not depend on the Budget:
| Change | Starts | Status |
|---|---|---|
| Property income tax at 22%, 42% and 47%; Section 24 credit at 22% | 6 April 2027 | Legislated |
| Dividend tax at 10.75% and 35.75% (hits SPV owners drawing profit) | 6 April 2026 | In force |
| Making Tax Digital for gross income over £30,000 | 6 April 2027 | Legislated (over £50,000 since April 2026) |
| MTD penalty points for late quarterly updates | April 2027 | None during 2026-27 |
| High Value Council Tax Surcharge, £2,500 to £7,500 on £2m+ homes (England) | April 2028 | Announced; consultation closed 14 July |
| PRS database registration, £65 per property per year | From 15 December 2026, region by region | Announced 9 September |
Making Tax Digital is already live for the largest landlords: HMRC said on 12 August that 436,000 sole traders and landlords sent their first quarterly update by the 7 August deadline, and that no penalty points will be issued for late updates during 2026-27 (GOV.UK). If your gross rents are over £30,000, April 2027 is your start date (see MTD for landlords). The property income rates are covered in full in the 2027 property income tax changes.
Will capital gains tax go up for landlords?
It is the most discussed risk, and the one with the biggest numbers attached. Residential property gains are taxed at 18% for basic-rate taxpayers and 24% for higher-rate taxpayers, after a £3,000 annual exempt amount. Capital gains tax is not covered by the manifesto pledge, Burnham has talked openly about taxing wealth more heavily than work, and aligning capital gains tax with income tax rates is the change commentators most often predict. Knight Frank's Tom Bill warned in August that it "would be bad news for some landlords, but tenants would also suffer if owners sold." Nothing has been announced.
Here is what alignment could mean on a typical long-held buy-to-let. Say you bought a flat for £180,000 in 2012 and sell it for £300,000 after costs: a £120,000 gain, or £117,000 after the annual exempt amount, all falling in the higher-rate band.
| Rate on the gain | Tax due | Extra vs today |
|---|---|---|
| 24% (today's higher residential rate) | £28,080 | nil |
| 40% (aligned with income tax higher rate) | £46,800 | £18,720 |
| 42% (aligned with the 2027 property income higher rate) | £49,140 | £21,060 |
The timing question is the one landlords ask: can you sell before Budget day to lock in 24%? For capital gains tax, a property is disposed of on the date contracts are exchanged, not on completion, and past Budgets have changed rates from Budget day itself: the main capital gains tax rates rose on 30 October 2024, the day of that Budget. So you would need to exchange before 28 October, which is four weeks away. For most landlords that is not realistic, and a rushed sale at a discount can cost more than the tax it saves. If you were already selling and are close to exchange, there is a case for not letting it drift. Estimate your own bill in the capital gains tax calculator and see how CGT on a buy-to-let works.
Will the mansion tax threshold drop to £1.5 million?
It is under discussion, according to reports. The Times reported on 20 September that lowering the High Value Council Tax Surcharge threshold from £2 million to £1.5 million is a "live discussion" in the Treasury, which would bring around 271,000 homes into scope (City AM).
For landlords the key design point does not change: the surcharge falls on the owner, not the tenant, and let homes cannot use the deferral scheme. Our high value council tax surcharge guide sets out who pays and a worked example.
Is National Insurance on rental income coming?
The rumour is back, but there is still no proposal. It surfaced before the 2025 Budget, which chose a 2-point rise in property income tax instead, explicitly because rental income does not pay National Insurance. Extending National Insurance to rent would arguably not break a pledge about working people, which keeps the idea alive, but it would stack a second charge on landlords before the first one starts in April 2027. We explain what it would cost under different designs in National Insurance on rental income.
Will stamp duty or council tax be replaced?
Not in this Budget. Burnham, who has previously backed replacing both with a land value or proportional property tax, was asked on 27 July whether stamp duty would change in the Budget and replied: "That won't be happening." He added: "It's just not the case that we are bringing forward plans on that scale at this moment in time." So the 5% stamp duty surcharge on additional homes stays for now, and a wholesale property tax reform looks like a question for after the next election.
Will there be a rent freeze?
Not on current signals, and it would not be a Budget tax measure anyway. In July Burnham said he was considering rent freezes as part of a package of measures, with no final decision made. Days later, Housing Secretary Angela Rayner told BBC Breakfast (Nation.Cymru): "I don't think that rent freezes, rent controls, is a way forward at the moment."
The direction of travel is enforcement instead. In his conference speech on 29 September, Burnham said councils would get powers to take control of poorly maintained rental homes whose landlords ignore warnings and bring them into public housing, and that the government would "legislate if necessary" (Landlord Today). No detail has been published.
What should landlords do before 28 October?
- Do not sell or incorporate on a rumour. The exchange-date rule makes beating the Budget impractical for most sales, and incorporating a portfolio triggers stamp duty and capital gains tax that are certain.
- Price the confirmed changes first. Model the April 2027 property income rates on your current profit, per property.
- Know your gains. Work out the gain on each property at today's value, so you can read any capital gains tax change in minutes.
- Check values against £2 million and £1.5 million for any high-value lets.
- Read the Budget documents, not the headlines. A real measure comes with a start date, often "from 28 October 2026" or "from 6 April 2027". Anything without one is still speculation.
- Watch 5 November. A Bank of England rise a week after the Budget would move remortgage costs more than most tax measures.
Scotland and Wales: capital gains tax and National Insurance are UK-wide, so any change reaches landlords everywhere. The mansion tax is England only. Scottish and Welsh governments set their own income tax rates on earnings and are due to set their own property income rates, and land transaction taxes (LBTT and LTT) are set in Edinburgh and Cardiff, not by this Budget.
This is general information, not tax or financial advice. Nothing in the Budget is confirmed until it is announced, so check GOV.UK on 28 October or speak to a qualified adviser before acting.
