There’s growing speculation that the UK government may extend National Insurance (NI) contributions to rental income, a move that could reshape the tax landscape for landlords and property investors once again.
Sources suggest an NI levy on rental profits is under consideration as part of efforts to address a significant fiscal gap. While this wouldn’t breach Labour’s pledge not to raise NI rates, it would broaden the scope of NI to include “unearned income.”
Implications:
- Potential increase in landlord costs
- Pressure on rental supply and affordability
- Greater alignment between tax treatment of earned vs unearned income
All eyes are on the Autumn Budget for confirmation. If implemented, this could mark a pivotal shift in property taxation.
At HaysMac, our specialist property sector team have a wealth of experience and can guide you through the implications of the potential NI changes for your business. We can assist with cashflow modelling, incorporation and restructuring, business exits. We are here to help every step of the way. If you would like to discuss further, please contact Reshma Patel, Property Tax Director at, rpatel@haysmac.com, or Nick Jordan, Partner and Head of Business Tax at, njordan@haysmac.com.
