Autumn Budget 2026: what should landlords look out for?

This is the first Autumn Budget for Prime Minister Andy Burnham and Chancellor John Healy. On 28 October, the new government will lay out its plans for growth and taxation for the next few years. 

Burnham’s early statements as prime minister have been about making the UK’s tax system fairer, with a focus on taxing wealth, rather than work. 

Understandably, this has led to speculation around how property taxes could change, with capital gains tax, stamp duty, and income tax all coming under consideration.   

What could be announced in the Autumn Budget? 

The only indication the government has given about the upcoming Autumn Budget for landlords is that it won’t scrap stamp duty. And with the new prime minister also confirming that the government will stick to its manifesto pledges on tax rises – there’s only so many ways he and the chancellor can raise revenue to fund projects and operational costs. 

The following tax changes are predictions based on the realistic opportunities the government has to fill the gap in its finances. We’ve looked at what the government has already ruled out, combined with their political priorities, to see where potential tax changes could come. 

Capital gains tax alignment

Aligning capital gains tax (CGT) with income tax rates is one of the more strongly predicted changes among commentators. Andy Burnham has been clear about his aim to tax wealth in the upcoming budget, with statements like: “I think in this country we over tax people’s work… and we under tax wealth.” 

A change to CGT fits exactly with that ethos of asset taxation. One way the chancellor could change CGT is by bringing residential CGT rates in line with standard income tax rates. 

Here’s a simple example to explain how this would work in practice: 

Currently, property profits are taxed at special lower rates:

• if you’re a basic-rate taxpayer: 18%
• if you’re a higher or additional-rate taxpayer: 24%

For example, if you’re a higher-rate taxpayer and made a £50,000 profit selling your rental property:

• under current rules (24%): you pay a £12,000 tax bill
• under predicted rules (40%): you pay a £20,000 tax bill

Your tax bill would nearly double simply because the tax rate jumped from 24% to 40%. Some experts have estimated the change would generate up to £12 billion in tax revenue. 

Tweaks to stamp duty surcharge

Before he was prime minister, Andy Burnham spoke about replacing stamp duty with a proportional property tax or a land value tax. This would be a yearly tax based on the rental value of the land, meaning buyers wouldn’t pay an upfront stamp duty cost when a property is sold.

Burnham has since stated he won’t scrap stamp duty in the Autumn Budget to calm any rumours that could affect the housing market. But just because the prime minister has ruled out scrapping stamp duty entirely, it doesn’t mean there won’t be tweaks to how the tax works.

Another change to the stamp duty surcharge could be on the cards. The stamp duty surcharge is an upfront tax that landlords pay on the day they buy an investment property. And the surcharge is layered directly on top of the standard stamp duty rates.

When the government increases this surcharge – like the recent jump from 3% to 5% for second homes and buy-to-lets – it increases the initial amount of cash you need to buy a property. The government could increase the surcharge further, depending on their overall strategy for the housing market.  

Expanding the mansion tax

The government could lower the threshold for the upcoming high value council tax surcharge from £2 million down to £1.5 million. 

And following a recent consultation, some predict a ‘non-resident premium’ will be added to penalise overseas investors and owners of empty properties.

What changes are already confirmed?

While much of the Budget buildup is speculation, several tax changes are already confirmed. Regardless of what happens in the Budget, landlords should be preparing for the following: 

• the 2% property income tax rise (April 2027) – landlords holding properties in their own names will face a new 2% surcharge exclusively on rental profits. This creates a system where property income is taxed more heavily than standard employment income
• frozen income tax thresholds – with thresholds frozen until 2031, inflation and rising rents will create a fiscal drag*. As rental incomes increase, many basic-rate landlords will find themselves pulled into the new 42% higher-rate property tax bracket
• Making Tax Digital rollout – from April 2026, landlords earning over £50,000 annually must keep digital records and submit quarterly updates to HMRC. In April 2027, this threshold drops to £30,000, which will draw in significantly more landlords into the new reporting system 

More guides for landlords

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• Renters’ Rights Bill – what do landlords need to know?
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