The Autumn Budget includes a further increase in tax on rental income from 2027, taking the reported total increase to 4 percentage points. Alongside the developing rental-property registry in England and the wider impact of rental-sector reform, the change could prompt some landlords to review portfolio viability, ownership structures and future investment plans.
Advisers should prepare for more nuanced buy-to-let discussions covering rental yield, tax, refinancing risk, regulatory compliance and exit planning. AI-powered cash-flow models can efficiently run scenarios for rate changes, void periods, tax assumptions and property repairs, but they must use transparent inputs and should not be positioned as tax advice.
- Refer clients to a qualified tax adviser where ownership or tax treatment is in scope.
- Review affordability and stress-test assumptions at remortgage, not only at purchase.
- Capture changing client objectives, including sale, incorporation or reduced borrowing.