Autumn Budget 2026: key takeaways for landlords

Prime Minister Andy Burnham and Chancellor John Healy have just delivered their first Autumn Budget, laying out the new government’s blueprint for growth and taxation. The Chancellor stated his goal is to provide “breathing space today, and fresh hope for the future”.

Following Burnham’s early pledges to build a fairer system by taxing wealth rather than work, months of intense speculation over property taxes have finally been answered with today’s announcements.

From incoming tax rate hikes on rental profit to major overhauls of the Self Assessment system, here’s a breakdown of the key announcements and what they mean for landlords.  

1. Property income tax rising by 4%

The chancellor has announced a 4% rise to income tax rates for property income from April 2027. In last year’s Budget, a 2% income tax increase was announced. But the Autumn Budget 2026 confirmed that “the government will increase these rates by a further two percentage points from that date (April 2027).” 

This is quite a significant tax rise for landlords, with property income tax rates rising to the following from April 2027:

• basic rate taxpayers – from 20% to 24%
• higher rate taxpayers – from 40% to 44%
• additional rate taxpayers – from 45% to 49%

This change will increase your overall tax owed on rental profits. For every £10,000 of taxable rental profit you generate, you’ll pay an extra £400 in tax compared to current rates.

2. Major changes to Self Assessment payments

The way landlords pay their tax bill is getting a radical overhaul. The chancellor announced a reform to the administration of Self Assessment income tax, which will take effect in 2029.

Rather than paying your tax in one lump sum in January, the government will require taxpayers to make “smaller, more regular payments.” 

This seems like the next step in the government’s plans following Making Tax Digital to digitise the tax and the Self Assessment process.

While the exact frequency of these payments hasn’t been confirmed, and 2029 is three years away, you’ll eventually need to make sure your cash flow can accommodate regular tax instalments.

3. Tighter rules on limited company profit withdrawals

In recent years, many landlords have moved their properties into limited companies to benefit from corporation tax rates – which have historically been more favourable than personal income tax rates.

However, the chancellor announced he is “changing outdated rules so that people taking profits out of their companies are taxed consistently.”

We’re waiting for the full Treasury documents for the exact figures, but landlords using corporate structures could face higher taxes when drawing money out of their corporate structure for personal use (through dividends, for example).

4. Capital gains tax relief slashed for businesses

While standard residential buy-to-let properties do not qualify for business asset disposal relief, the chancellor announced he’s reducing the lifetime limit for this relief from £1 million to £500,000.

If you run a qualifying property business – like a portfolio of furnished holiday lets or a property development company – this will significantly impact your tax bill when you eventually sell your business assets.

5. Winter energy bill relief

The chancellor announced a £100 household energy payment to help with winter energy bills, which will be delivered as a council tax rebate starting in January 2027.

Your responsibility as a landlord depends entirely on who’s liable for the property’s council tax:

• if your tenant pays the council tax – the rebate will be applied directly to the tenant’s account by the local authority (you don’t need to do anything)
• if you pay the council tax – the rebate will be credited to your council tax account 

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