How did the Autumn Budget impact Landlords?

On 28^th October, the Chancellor of the Exchequer delivered the Autumn Budget 2026. Although the changes announced weren’t as dramatic as expected, there were still changes nonetheless that will impact taxpayers, including Landlords.

In this blog we look at commonly asked questions following the Budget and its impact on Landlords.

Q: What was the main announcement impacting Landlords?

The main announcement impacting Landlords was a further 2% increase in the tax rate on rental profits, effective from 6 April 2027 (2027/28 tax year).

Q: Wasn’t an increase in the tax rate previously announced?

Last year’s Autumn Budget announced a 2% increase in the tax rate on property income, effective from 6 April 2027. This year’s announcement is a further 2% increase, on top of last year’s 2% increase, effective from the same date. Therefore, the tax rates are increasing by 4% from 6 April 2027.

Q: How much tax will I pay on my rental profit going forward?

The amount of tax due on rental profits will depend on whether you are a basic, higher or additional rate taxpayer.

The changes in the tax rates are as follows:

Q: So, I will pay tax at either 24%, 44% or 49% on my rental profits?

Strictly speaking yes, however, with the finance restriction rules still in place, Landlords with mortgages on their rental properties pay effectively higher tax rates than the above, if their rental profit before finance costs pushes into the higher rate tax band.

Q: Are there any other changes to be aware of?

It was announced that from April 2029, taxpayers within self-assessment will need to make more regular payments towards their tax bill, rather than the current rules where payments on account are made twice a year, in January and July. It is expected that the payments will become quarterly and will bring forward the payment of tax liabilities.

Q: Was there any good news for Landlords?

There is a saying that no news is good news, and no changes were announced in relation to Capital Gains Tax (CGT) on property in the Autumn Budget. There have been rumours of the CGT rates being aligned with income tax rates, which would be a significant increase, but the CGT rates will remain at 18%/24%.

Final thoughts

As shown above, tax rates on Landlords are increasing and tax advice should be sought if you are looking to restructure your property portfolio or you are considering purchasing additional investment properties. If you require assistance, please contact our Property Teams in Sevenoaks and London.