Autumn 25 Budget – Blunders, Blasting & Big Shake up! INSIGHTS.ed5
Autumn 25 Budget – Blunders, Blasting & Big Shake up!
The OBR blundered the releasing of their market report prior to the Budget Speech, the opposition Blasted the leak and maybe lastly the budget announcement was a Big shake up to the tax system, much of which affects homeowners and landlords.. or something in that order !
The 2025 Autumn Budget 2025 delivered by Rachel Reeves brings some tax-hikes on property income: from April 2027, property (rental) income tax rates rise by 2 percentage points — meaning basic, higher and additional rates move to 22 %, 42 % and 47 % respectively.
For high-value homeowners and investors, a new “mansion tax” (a high-value council-tax surcharge) is to be introduced from April 2028 on properties valued over £2 million.
Sigh of Relief…
The Budget did not add National Insurance on rental income — a relief — yet the higher tax rates on property, savings and dividends altogether weigh more heavily on passive (non-salary) income.
For expat investors or non-UK residents owning UK property, these tax changes make structuring and planning more critical (e.g. via ltd company structuring ) to enhance or maintain profitability.
For an independent viewpoint and 3 key take aways from the Budget here is a great video from Property Hub guys Rob & Rob who we love to listen to!
- Increased property-income tax rates
- Need for smarter structuring for expat investors
- Cash-flow & exit-strategy focus becomes more critical
Moving Properties Personal Name to Ltd co ?
The Budget 2025 shook the market — higher taxes, tighter yields, and growing pressure on landlords. If you own UK property personally, now’s the moment many investors are asking: is it time to switch to a Ltd company? Watch the following video as we break down what’s changing and why your structure matters.”
Three key takeaways relevant to UK landlords and overseas/ex-pat investors:
- Rental-income tax squeeze is real — The video highlights that recent and upcoming tax changes are biting hard into profit margins, especially for higher-rate taxpayers.
- Company ownership increasingly attractive — With personal tax becoming tougher, holding property via a company appears more appealing: lower corporation tax on rental profits and the ability to deduct full mortgage interest. This could improve net yield for landlords and expat investors.
- Up-front costs & structure planning matter — The shift isn’t cost-free: transferring properties into a company can trigger SDLT (and possibly CGT), plus mortgage refinancing and legal/admin fees. For expat investors doing BTLs via Ltd Co — the long-term tax savings need to be weighed against these one-off costs.
There is one commonly discussed exception: if a property portfolio is held in a genuine business partnership (not just passive ownership) and that entire portfolio is transferred to a newly formed limited company — under certain conditions this qualifies for Incorporation Relief, which can defer or even eliminate both SDLT and CGT on transfer.
Book a call to discuss how we help with financing this scenario >> Here
Market Updates
- Unsurprisingly, with uncertainty on the Budget asking prices dropping a higher-than-usual 1.8% last month (according to Rightmove).
- Biggest Global Bank and Expat Specialist lender HSBC cut its rates this week and some others are following suit read all about it here.
- Expat buyers are still being offered up to 90% mortgages for Own use property and up to 85% on Buy To let properties. So its never been more attainable to get onto the housing ladder or grow the portfolio.
Next Steps…
Book a Free Discovery call here & if your not sure what a discovery call is all about Ive made a series of videos on what to expect here.
A Great way to get frequent updates, hints & tips and insider industry knowledge of the complex / expat mortgage market is to join our YouTube channel here.
Our Quick 60sec Quote page allows you to obtain the latest rates to be expected and you can request a specific quote by sending an email to info@mymotgagedeal.co.uk
