Could the Budget change the conversation for expat landlords?

The latest Budget gives expat landlords and their advisers another reason to review the future of their UK property investments.

From 6th April 2027, the basic, higher and additional property income tax rates will rise to 24%, 44% and 49% respectively in England, Wales and Northern Ireland. The changes will apply to individuals and partnerships receiving income from letting property.

Analysis from Connells Group, part of Skipton Group and the UK’s largest estate agency and property services provider, highlights the widening tax difference between rental properties owned personally and those held through a limited company. Its Budget briefing notes that the increase follows changes announced in the previous Budget, placing further pressure on landlords’ returns.

For intermediaries supporting expat and international landlords, the potential impact on returns could prompt a broader discussion about the future of a client’s portfolio. This might include their expected rental income, plans to buy or sell properties, future borrowing requirements and how long they intend to retain their investments.

Jo Phillips, Senior Manager, Mortgage Sales at Skipton International, said:

“The changes may prompt more expat landlords to review their UK property investments and consider whether their current arrangements still support their longer-term plans.

“Intermediaries can play an important role by starting that conversation early and working alongside the client’s independent tax and legal advisers. Holding property through a limited company will not be suitable for everyone, so any decision should reflect the client’s full circumstances, rather than tax considerations alone.”

Intermediaries can explore Skipton International’s UK buy-to-let proposition through our dedicated intermediary page. To discuss a client’s requirements with our Mortgage Sales team, call +44 (0)1481 734000 or +44 (0)1534 509501, or email mortgagesales@skiptoninternational.com