Autumn Budget 2025 – how could it affect landlords?

By Debbie Franklin, Director of Tax and property tax specialist

With the Autumn Budget set to take place on 26 November 2025, rumours and speculation are inevitable. Whilst it is true that we should take budget predictions 'with a pinch of salt', it is worth being aware of what could happen on 26 November. Such awareness could prompt scenario planning and help avoid shock and panic in the event of unfavourable measures being announced!

In addition to the new property tax and council tax overhaul mentioned in the previous article, the following measures could be announced on budget day:

• The scope of National Insurance Contributions (NICs) could be widened to include landlords, levelling the playing field with those running their own trading business.
• Tax reliefs in respect of pension contributions may be restricted.
• The rates of CGT (currently 18% for basic rate taxpayers and 24% for higher/additional rate taxpayers) could be aligned with those for Income Tax, making the rate as high as 45%.
• There may be further restrictions to available IHT reliefs, possibly by introducing limits on exempt lifetime gifting.
• The VAT registration threshold, currently £90,000, may be lowered or abolished.
• The rate of VAT on domestic fuel is currently 5%. There are rumours that, in order to help with the cost of living crisis, such supplies will become zero-rated.

Labour's 2024 manifesto pledged that there would be no increases to National Insurance, the basic, higher or additional rates of Income Tax, or VAT. It is likely, however, that thresholds will be frozen further, perhaps until April 2030.