Budget 2026: what landlords know, what is open, and how to prepare

In short: the new Chancellor, John Healey, delivers his first Budget on Wednesday 28 October 2026. Several changes that hit landlords are already set and will not be decided on the day, including the 2027 property income tax rates and the Making Tax Digital timetable. The Prime Minister has said stamp duty changes "won't be happening". Higher capital gains tax and council tax reform are possible, but for now they are speculation. The sensible approach is to know which is which, run your numbers on the fixed changes, and avoid selling or restructuring in a hurry on the strength of a rumour.

The 30-second version

  • Budget day: Wednesday 28 October 2026.
  • Already fixed: property income tax at 22%, 42% and 47% from April 2027; MTD at £30,000 from April 2027.
  • Already fixed (England): high value council tax surcharge on homes over £2 million from April 2028.
  • Ruled out: changes to stamp duty, according to the Prime Minister in August.
  • Speculation only: higher capital gains tax, council tax reform, land value tax.

What is already decided

ChangeWhenWhere
Property income tax at 22%, 42%, 47%; mortgage interest credit at 22%6 April 2027England, Wales, Northern Ireland; Scotland to decide
Making Tax Digital threshold falls to £30,0006 April 2027UK-wide
Making Tax Digital threshold falls to £20,0006 April 2028UK-wide
High value council tax surcharge: £2,500 to £7,500 a year on homes worth over £2 million, paid by the ownerApril 2028England
Landlord register fee of £65 per property a yearFrom 15 December 2026, by regionEngland
Higher energy standard for private lets1 October 2030England and Wales

Each of these has its own guide in this series: the 2027 property income tax rise, Making Tax Digital, the landlord register and the 2030 energy standard. The high value surcharge will touch very few buy-to-let investors, since it targets fewer than 1% of homes in England.

What has been ruled out

Asked in August whether the Budget would scrap or change stamp duty, Prime Minister Andy Burnham said: "That won't be happening." Politicians can change their minds, but on the record, the purchase tax rates for buying property in England and Northern Ireland, including the 5% surcharge on additional homes and the 2% non-resident surcharge, are expected to stay as they are. Land and Buildings Transaction Tax in Scotland is set by the Scottish Government, not the Westminster Budget.

What is only speculation

How to prepare without overreacting

Decisions rushed through in the week before a Budget are often the ones people regret. A few principles we use with investors:

  1. Plan on what is fixed. Rework cashflow for every property using the April 2027 tax rates and today's mortgage rates. That is the baseline, whatever happens on 28 October.
  2. Do not fire-sell on a rumour. Selling to beat a possible capital gains rise costs agent fees, legal fees, a void and lost rent, and you may need to reinvest. In 2024, the rise in capital gains tax rates on other assets applied to disposals from Budget day itself, so there was no window to sell afterwards at the old rate.
  3. If you were already planning to sell, talk to a tax adviser before Budget day about timing, rather than after.
  4. Run a downside case. Model one scenario with a higher CGT rate on eventual sale. If the investment only works with a low exit tax, it is a weak investment.
  5. Read the published documents. The detail that matters to landlords usually sits in the policy costings and technical notes released on the day, rather than in the speech.

After 28 October

The Budget documents are published on GOV.UK on the day. If anything announced changes how a property should be held, financed or sold, that is the moment to take advice, with the published detail in front of you rather than the headlines.

This article is general information, not tax or investment advice. We are not tax advisers or financial advisers. Budget measures can differ from what is reported beforehand; take advice from a qualified tax adviser before making decisions.

Common questions

When is the 2026 Budget?

The Autumn Budget is on Wednesday 28 October 2026. It is the first Budget delivered by Chancellor John Healey.

Will stamp duty change in the 2026 Budget?

The Prime Minister said in August 2026 that changes to stamp duty "won't be happening". Nothing is certain until the Budget is published, but no change to stamp duty is expected.

Is capital gains tax on property going up in October 2026?

There has been press speculation about higher capital gains tax rates, but nothing has been announced. Residential property gains are currently taxed at 18% and 24%. Landlords should take advice rather than sell in a hurry on the basis of a rumour.

Which landlord tax changes are already confirmed?

Property income tax rates of 22%, 42% and 47% from 6 April 2027 in England, Wales and Northern Ireland, the Making Tax Digital threshold falling to £30,000 in April 2027 and £20,000 in April 2028, and a high value council tax surcharge in England from April 2028.

← The 2027 property income tax rise

Whatever the Budget brings, the fundamentals still decide a good investment: buy well, let well, manage well. That is what we do for our investors.

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Checked on 2 October 2026.