Buy-to-let landlords urgently need clarity on tax policy ahead of next month’s Autumn Budget — not further “confusing” speculation from government leaks, according to leading tax advisory firm Blick Rothenberg.

Heather Powell, a partner at the firm, criticised the government’s recent approach to “kite-flying” — floating potential tax changes to gauge public opinion before formal announcements.  “The ‘kite flying’ we have seen in recent months, where the Government ‘leaks’ potential taxes to gauge public opinion, is extremely unhelpful,” said Powell. 

“It is creating uncertainty in the property market and unnecessary stress for landlords and their tenants. Instead of this, the Government should either confirm which taxes will or won’t happen in the Budget — or keep quiet until the 26th of November.”

Long-Term Clarity on EPCs and Support for Upgrades

Powell said landlords need a clear plan for Energy Performance Certificate (EPC) requirements through to 2040, alongside grants, soft loans or tax relief to fund improvements.

“Landlords need to know what is required so they can budget and plan,” she said. “Support for upgrading homes would reduce both national carbon emissions and tenants’ utility bills.”

Tax Policy Uncertainty

Powell called for the Government to clarify its stance on National Insurance, Income Tax, Capital Gains Tax (CGT) and Inheritance Tax (IHT). She warned that previous tax changes — particularly the restriction on mortgage interest relief — had already forced many smaller landlords to exit the market. “The suggestion that National Insurance could be charged on rental income is causing many more to reconsider whether a personally held buy-to-let portfolio is viable,” she added.

Making Tax Digital Concerns

Powell also raised concerns about the Making Tax Digital (MTD) programme, which will require landlords to file quarterly returns using commercial software.  “Landlords need clarity on their tax filing requirements,” she said. “MTD must be seamless and add value for both landlords and HMRC — but neither result appears likely at the moment.”

Chancellor Urged to Protect Small Landlords

Powell concluded by warning that smaller landlords must not be driven out of the sector by poorly targeted policy.  “The Chancellor needs to ensure that buy-to-let landlords with a few personally held properties are not forced out of the market,” she said. “Corporate landlords are not in a position to fill the resulting shortfall — and many tenants are not in a position to buy.”