Rachel Reeves Plots New Tax Raid on Landlords: How to Mitigate Tax?
Landlords across the UK are bracing themselves once again as reports surface of a new tax raid being planned by the Labour government. With the Autumn Budget fast approaching, Shadow Chancellor Rachel Reeves has been accused of plotting another wave of financial pressure on landlords. But what exactly does this mean for property investors and landlords, and how can you prepare?
The Latest Landlord Tax Raid Explained
In September 2025, news broke that landlords may soon face National Insurance charges on rental income. If implemented, this would mark yet another blow to those already struggling with rising mortgage rates, Section 24 restrictions, and maintenance costs.
For many landlords, rental income is not pure profit. After deducting mortgage payments, repairs, and existing taxes, margins are already tight. Adding National Insurance into the mix could push many property businesses into the red.
This proposed landlord tax raid highlights once again the government’s approach of targeting property owners as an “easy win” for extra revenue.
Why the Autumn Budget Matters for Landlords
The Autumn Budget is always a time of uncertainty for landlords, and this year is no exception.
Beyond the potential National Insurance change, there are strong signals that capital gains tax (CGT) could be increased on property sales. Some fear that even primary residences could be brought into scope. If true, this would represent one of the most aggressive property tax policies in decades.
The message is clear: landlords must prepare for more restrictions, less relief, and higher tax liabilities.
How Landlords Can Mitigate the Impact of New Tax Raids
While the outlook may seem bleak, landlords do have options to restructure their businesses and reduce exposure to punitive tax changes. Here are some strategies to consider:
1. Incorporation into a Limited Company
Many landlords still hold properties in their own name, leaving them vulnerable to heavy taxation. Incorporating into a company structure can help mitigate tax exposure and provide access to different reliefs.
2. Utilising Commercial Stamp Duty Reliefs
Currently, landlords selling six or more properties into a company can benefit from reduced commercial stamp duty rates. For example, six properties worth £600,000 could incur stamp duty of just £19,500 compared to £50,000 if sold individually, a saving of £30,500.
3. Title Splitting for Equity Uplift
Services such as TitleSplit.com help landlords unlock additional equity by splitting freehold blocks into individual titles. In one case, a landlord increased the portfolio value from £3.1 million to £4.1 million by splitting 20 units – 10 flats and 10 houses across two freeholds. This restructuring created £1 million in extra value, representing a 25% equity uplift. Even after paying capital gains tax at 24% and SDLT, the landlord secured more than £600,000 in net additional equity. This shows how powerful title splitting can be in protecting portfolios against new tax raids.
4. Professional Tax Advice
With rules shifting constantly, working with a tax specialist is no longer optional—it’s essential. A skilled accountant can help futureproof your portfolio and ensure you’re taking advantage of all available reliefs.
Why Landlords Need to Act Now
Successive governments have made it clear: landlords are an easy target. From Section 24 to potential Rachel Reeves’ tax raids, the trend is unlikely to reverse. If you continue to delay restructuring your portfolio, you risk losing more equity, cash flow, and long-term stability.
Don’t wait until after the Autumn Budget. Engage with tax professionals, explore incorporation, and consider equity-enhancing strategies like title splitting today.
Key Takeaways
- Rachel Reeves is reportedly planning a new tax raid on landlords in the Autumn Budget.
- National Insurance on rental income could become a reality.
- Higher capital gains tax and even primary residence taxation are on the table.
- Incorporation, commercial SDLT reliefs, and title splitting can all help mitigate the impact.
- Landlords must act now to protect their portfolios before further changes hit.
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