The National Residential Landlords Association has warned that reports of Capital Gains Tax rates as high as 46 percent could make landlords delay sales before the Autumn Budget on 28 October.
The association’s 25 September article responds to speculation, not a confirmed Treasury measure. It says higher CGT rates could reduce the capital landlords have available to improve properties, while the Chancellor has not announced a rate change or set out a Budget policy on landlord disposals.
Landlords weighing a sale, incorporation or portfolio reshuffle now face a familiar pre-Budget problem: a rumour can affect decisions before any rule exists. Selling solely to beat an unconfirmed change can create costs and tax consequences of its own, but holding an asset without modelling the current CGT bill can be equally risky.
NRLA argues that CGT changes can alter behaviour
The NRLA says CGT is charged only when an asset is sold, so a higher rate can encourage owners to defer a disposal rather than create more revenue. Its article cites debate around proposals to lift CGT towards income-tax rates, including figures of up to 46 percent reported in the press.
The association also points to comments from Institute for Fiscal Studies director Paul Johnson, who has questioned large revenue claims from a simple CGT increase. The NRLA’s position is that a higher rate needs to be considered alongside inflation, acquisition costs, Stamp Duty and investment in improvements.
Those arguments are advocacy rather than a Government forecast. The rate used in a final CGT calculation depends on the taxpayer, the gain, the annual exempt amount, reliefs and the law in force when the disposal takes place. Landlords should not read the 46 percent figure as a confirmed future rate.
Inflation and improvement costs are part of the NRLA case
In its worked example, the association argues that a nominal property gain can contain a large inflation component. It says a landlord who bought at £250,000 and sold 10 years later at £360,000 would see much of the £110,000 difference absorbed by cumulative inflation.
That is why the NRLA has renewed its call for CGT to reflect real gains. The association says a tax system that does not account for inflation, purchase costs and property improvement spending can reduce the incentive to sell or reinvest.
This follows Landlord Knowledge’s September report on the NRLA’s formal Budget submission, which asked the Treasury to tax landlords on real capital gains. Landlord Knowledge’s coverage of HMRC’s record £24.2 billion CGT liabilities showed why the tax has a prominent place in the Budget debate, even though liability figures do not confirm a future rate rise.
The Budget date is the point to watch
The Chancellor will deliver the Budget on 28 October. Until then, the live rules remain the rules landlords should use for purchase, sale and refinancing calculations.
A landlord considering disposal should first establish the current taxable gain with an accountant or tax adviser, including acquisition and disposal costs, capital improvement evidence, ownership structure and available reliefs. A date-driven decision without that groundwork can be more expensive than the policy change being feared.
The NRLA’s 25 September Budget commentary is explicit that the discussion is based on early reports and speculation. It should be read as a warning about possible incentives, not as confirmation of a 46 percent CGT rate.
What this means for landlords
- If you are considering a sale: calculate the liability under current law before changing a timetable because of unconfirmed Budget reporting.
- Keep: invoices and records for qualifying capital improvements, acquisition costs and disposal costs, which can be important in a real-gain calculation.
- Watch for: the 28 October Budget and any accompanying documents that confirm rates, effective dates or transitional rules.
- Bottom line: the NRLA’s warning concerns policy risk, not a CGT increase that has already been announced.
Editor’s view
Pre-Budget tax stories often invite rash deadlines. The useful response is neither panic nor denial: know the current numbers, keep the evidence for costs and improvements, and wait for an actual measure before treating speculation as law.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 25 September 2026
Sources: National Residential Landlords Association
Related reading: NRLA calls for CGT on real landlord gains before Budget
