Autumn Budget 2026: NRLA Warns Against Capital Gains Tax Hike
· Legislation · 2 min read · NRLA
Ahead of the 28 October Budget, reports suggest CGT could rise to 40–45%. NRLA argues this taxes inflation as if it were real gain and has submitted a Treasury proposal calling for reform instead.
Autumn Budget 2026: NRLA Warns Against Capital Gains Tax Hike as Speculation Builds
With the Autumn Budget set for 28 October, speculation is mounting over potential increases to Capital Gains Tax (CGT), with some proposals reportedly floating rates as high as 45–46%. The NRLA has laid out why it believes such a move could backfire.
The case for raising CGT
Ecotricity founder and Labour donor Dale Vince has proposed raising CGT to 45%, arguing it could raise £20 billion while funding a higher personal allowance.
The case against
Paul Johnson, director of the Institute for Fiscal Studies, has disputed that scale of revenue, citing HMRC modelling suggesting a 10% CGT increase would in fact cost the Treasury around £3.5 billion - behavioural change (landlords holding rather than selling) offsets much of the expected gain. Johnson has separately described the current CGT system as fundamentally in need of reform, calling it "a mess."
The core argument: inflation isn't a gain
The NRLA's central point is that CGT as currently structured taxes inflation alongside real gains. Using a worked example: a property bought for £250,000 and sold ten years later for £360,000 shows an apparent £110,000 gain - but with cumulative inflation over that period around 41%, roughly £102,000 of that is simply the effect of inflation, not real appreciation. At a 40-45% CGT rate, a landlord in this position would face a real-terms loss on the sale despite the "gain" on paper.
What the NRLA is asking for
In its formal Treasury submission this month, the NRLA argues any CGT increase should only happen as part of a broader tax reform package that accounts for inflation, Stamp Duty, acquisition costs, and property improvement investment - and that the system should recognise length of ownership rather than penalising long-term landlords the same as short-term speculators.
What this means for landlords
Nothing is confirmed until Budget Day. If you're a landlord weighing whether to sell a property, the practical takeaway is that CGT policy is genuinely in flux right now - a decision to sell before or after 28 October could carry materially different tax consequences depending on what's announced.
Source: NRLA, 25 September 2026