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Last updated: 22 October 2026. This page will be updated with the announcements on Budget day.
The Autumn Budget 2026 is on Wednesday 28 October. Budget statements usually start at around 12:30pm, after Prime Minister's Questions. This will be Chancellor John Healey's first. For landlords, the biggest tax rise is already decided: property income rates go up by 2 percentage points from April 2027. Most of what you are reading about capital gains tax is still rumour.
We asked Kate Faulkner OBE to separate the rumours from the facts. Her view is that landlords are unlikely to be hit hard this time. What matters more is whether the Budget is good for the economy, because that decides whether your tenants can keep paying the rent.
When is the Autumn Budget 2026?
The Autumn Budget 2026 is on Wednesday 28 October 2026. The Office for Budget Responsibility (OBR) publishes its economic and fiscal forecast alongside the speech, and the Treasury publishes the full Budget documents the same afternoon.
The speech covers the headline measures only. Kate points out that the detail sits in roughly 250 pages of documents.
"There could be some real stuff in there that's massively important to landlords," she says, "and it won't come out till the next day, until somebody spots that little line or an asterisk."
What tax changes are already confirmed for landlords?
Three tax changes are already set for landlords, whatever happens on 28 October. Property income tax rises to 22%, 42% and 47% from April 2027, Making Tax Digital extends to income over £30,000 from April 2027, and a council tax surcharge on £2 million homes is planned from April 2028.
- Property income tax rates rise from April 2027. The 2025 Budget set new rates for rental profit of 22% (basic), 42% (higher) and 47% (additional) for landlords in England, Wales and Northern Ireland, according to the HMRC technical note. Scotland and Wales are expected to get powers to set their own property income rates. Our guide to the 2025 Autumn Budget covers what that means for your portfolio.
- Making Tax Digital extends to income over £30,000 from April 2027. If your gross rental and self-employment income (before expenses) is above £30,000, you will need digital records and quarterly updates. See our Making Tax Digital guide for landlords and our round-up of buy-to-let landlord tax changes in 2026.
- A council tax surcharge on homes worth £2 million or more is planned from April 2028. It applies in England and runs from £2,500 to £7,500 a year. It is not law yet, according to the House of Commons Library, so watch for it in the Budget documents.
- VAT on household electricity is 0% until 31 March 2027. It fell from 5% on 1 October 2026, Ofgem confirms. Gas still carries 5% VAT. This matters most for landlords paying bills in HMOs.
The table below separates what is confirmed from what is still rumour. The property income rise and the MTD expansion are already set. Every capital gains tax change is still rumour.
| Change | Status (22 Oct 2026) | When it applies | Why landlords care |
|---|---|---|---|
| Property income tax rates rise to 22%, 42% and 47% | Set (2025 Budget, Finance Bill 2025-26) | April 2027 | Higher tax on rental profit for landlords in England, Wales and Northern Ireland (Scotland and Wales expected to get powers to set their own) |
| MTD for Income Tax extends to income over £30,000 | Law | April 2027 | More landlords must keep digital records and send quarterly updates |
| High Value Council Tax Surcharge on £2m+ homes in England | Planned, not yet law | April 2028 | £2,500 to £7,500 a year on high-value property |
| VAT on household electricity cut from 5% to 0% | Law (in force) | 1 Oct 2026 to 31 Mar 2027 | Lower bills, including for landlords paying utilities in HMOs |
| “Your First Home” new-build scheme in England, 2.5% deposit | Announced (details due at the Budget) | Details due at the Budget | Some tenants may be able to buy sooner |
| 20% business rates cut for pubs, clubs and music venues (England) | Announced | April 2027 | Healthier high streets make an area easier to let |
| CGT rates rise to match income tax | Rumour (reportedly ruled out) | Not set | Would raise tax on a sale from 24% to as much as 45% |
| CGT charged on inherited property or on leaving the UK | Rumour | Not set | Would change estate and exit planning |
| Mansion tax threshold cut to £1.5m | Rumour (reportedly ruled out) | Not set | Would bring more London and South East property into scope |
| Higher tax on bank profits | Reported | Not set | Indirect, through how lenders price mortgages |
Will capital gains tax go up for landlords in 2026?
Nothing is confirmed, and Kate rates a big capital gains tax (CGT) rise as unlikely. Landlords now pay CGT on residential property at 18% as a basic-rate taxpayer and 24% as a higher-rate taxpayer. The higher rate fell from 28% in April 2024, a cut many landlords never heard about.
The rumour is that CGT would rise to match income tax. That would take a higher-rate seller from 24% to 40%, or 45% for additional-rate taxpayers.
Kate raised it with tax experts the week before recording. "One of them rolled his eyes and went, no, not the capital gains tax thing again," she says. He told her it had been suggested every year.
The Financial Times has reported, citing Treasury sources, that equalising the rates has been ruled out, as Grant Thornton notes. There is no official statement, and a smaller rise is still possible. Our guide to capital gains tax on investment property explains how the current rates work.
Could CGT be charged on inherited property?
Possibly, but no formal proposal has been published. The idea is to charge CGT on inherited property from the date the original owner bought it, instead of resetting the value at death. A second idea would tighten the rules for owners who move abroad while keeping UK property. Kate sees the inheritance change as the more likely of the two, "because that would be an easy way to do that." Our article on suggested capital gains tax changes looks at the inherited-assets proposal.
Will the mansion tax threshold fall to £1.5 million?
Probably not. Earlier reports said the £2 million threshold for the new council tax surcharge could fall to £1.5 million. Kate doubts it, because valuing homes in that bracket accurately is hard. The Sunday Times and Financial Times have since reported that the Chancellor has ruled it out after London Labour MPs raised concerns. The Treasury has not confirmed this.
Will the Budget tax bank profits?
It might. City AM and The Guardian report that the Chancellor is considering a higher tax on bank profits, most likely through the existing 3% bank surcharge. Kate expects a levy on sectors with bumper profits and would be "surprised if they don't", because it would be popular. For landlords the effect is indirect, through how lenders price buy-to-let mortgages.
How could the Budget affect your tenants?
Three announced measures help tenants' finances: a tax waiver for pensioners living on the State Pension, a 2.5% deposit scheme for first-time buyers, and a business rates cut for local high streets. Kate's point is that anything that helps tenants' finances helps your rent roll.
- Pensioner tenants. The full new State Pension is close to the £12,570 personal allowance. The government has said that people whose only income is the full new or basic State Pension, without increments, will not pay income tax on it from April 2027, Which? reports. Details are expected in this Budget. Kate notes that many older people rent, so this matters to landlords more than it first appears.
- Tenants who want to buy. The "Your First Home" scheme is expected to let first-time buyers purchase a new-build home in England with a 2.5% deposit and a 20% government-backed equity loan. Full details are due at the Budget.
- Local high streets. Pubs, clubs and live music venues in England get a 20% business rates cut from April 2027. Kate also points to local improvement funds that areas can bid for, such as money to repair parks. A better place to live keeps good tenants.
Why does the economy matter more to landlords than any single tax?
For most landlords, a Budget that supports jobs and wages is worth more than any tax cut. Tenants in secure work pay on time, and that is what keeps a rental business healthy.
"What's more important for landlords is whether they set a budget that's good for the economy, good for wages, good for jobs," Kate says. "If you have a good economy, good wages, good jobs, as a landlord you'll have good tenants who can pay your rent on time."
She points to the 2022 mini-budget as the warning. Markets reacted badly and mortgage rates jumped. Landlords felt that more than they would feel most of the tax changes on the table today. Her verdict on 2026: "Cautiously optimistic."
How should landlords read Budget coverage?
Check who is behind each claim. Government announcements are reliable. Think tank proposals and media speculation often are not. Kate sorts them into three groups.
- Government announcements. Measures trailed at party conference, such as the first-time buyer scheme, are safe to trust. Reversing them weeks later would be politically costly.
- Kite-flying. Some ideas are briefed to the press to test the reaction. If they go down badly, they quietly disappear.
- Think tanks, lobbyists and economists. These fill the 24-hour news cycle. Check whether the government listens to them. Kate names the Resolution Foundation as close to this government, recommends Sunday Times economist David Smith, and listens to PM on Radio 4.
Security around this Budget is tighter than usual. Last November the OBR's forecast went online before the speech, and its chair resigned. Fewer people now see the plans in advance, so expect fewer reliable leaks.
What should landlords do before and after 28 October?
Speak to your own financial adviser and property tax specialist before the Budget. Strangers online cannot advise on your position, because your tax depends on all of your income and assets, not one property.
"If you haven't got one before a budget, they can't help you after the budget has come in," Kate says. She has watched landlords post their full property finances in Facebook groups and ask how much tax they will pay.
"You don't get charged tax based on one property deal. You get charged on all of your income and assets." Only qualified, regulated advisers can give financial advice.
- Before: do not sell, restructure or transfer property because of a rumour. Book time with your adviser for the week after the Budget.
- On the day: skip the live speech if you like. The headline measures are widely reported the same afternoon.
- After: wait a day for the full documents to be read, then check what changes for your own numbers.
Good records make that conversation quicker and cheaper. If your income and allowable expenses are already up to date, your adviser can model the impact straight away.
Frequently Asked Questions
When is the Autumn Budget 2026?
The Autumn Budget 2026 is on Wednesday 28 October 2026. Budget statements usually start at around 12:30pm, after Prime Minister's Questions, and the OBR forecast and Treasury documents follow the same afternoon.
Will capital gains tax on property go up in the 2026 Budget?
Nothing has been confirmed. CGT on residential property is 18% for basic-rate and 24% for higher-rate taxpayers. A rise to income tax rates has been reported as ruled out, but smaller changes, such as charging CGT on inherited property, are still possible.
What tax changes for landlords are already confirmed?
Property income tax rates rise to 22%, 42% and 47% from April 2027 in England, Wales and Northern Ireland. Making Tax Digital extends to landlords with qualifying income over £30,000 from April 2027. A council tax surcharge on homes in England worth £2 million or more is planned from April 2028.
Is there a mansion tax for landlords?
A High Value Council Tax Surcharge is planned for homes in England worth £2 million or more from April 2028, at £2,500 to £7,500 a year. It applies to owners, including landlords. Reports of a lower £1.5 million threshold remain unconfirmed.
Should I sell a rental property before the Budget?
Do not sell because of a rumour. Your tax position depends on all of your income and assets, so speak to a regulated financial adviser and a property tax specialist first. A sale decided in a rush can cost more than the change you were trying to avoid.
Where can I get trusted Budget information for landlords?
Start with the official Treasury and OBR documents published on Budget day, then your own adviser. Kate Faulkner is hosting a Budget panel at the Landlord Investment Show in London on 28 October, covering tax, finance and the housing market.
Get your numbers ready before 28 October
The Budget may change your tax, but it will not change the fact that your adviser needs accurate figures. Landlord Studio tracks rental income and expenses as they happen, and it is recognised by HMRC as Making Tax Digital software. When the announcements land, you will know where you stand. Try Landlord Studio free for 14 days.
Kate Faulkner OBE's comments are from a recorded conversation with Landlord Studio in October 2026 and have been lightly edited for readability. This article is general information, not financial or tax advice.