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5/12/25 4:43 pm
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Finance experts believe landlords will elicit little sympathy if the Chancellor decides to go ahead with a rumoured tax grab.
Rachel Reeves is thought to be considering raising income tax by 2p in the pound and reducing employee national insurance by an equivalent 2p. Along with pensioners, landlords - many of whom rely on investment income - would be most impacted by the move, which Antonia Medlicott, founder of Investing Insiders, believes could be framed politically as correcting a system that over-taxes work and under-taxes wealth gained elsewhere, reports FT Advisor.
Ross Lacey, director at Fairview Wealth Management, agrees that from on optics perspective it is generally easy to target landlords and investors for more tax without the stigma, “given the misconception that these must be the rich and they have the broadest shoulders”.
While landlords may not get public sympathy, targeting retirees might get some backlash, adds Scott Gallacher, director at Rowley Turton. He explains: “The fury over the scrapping of the winter fuel allowance shows that granny is off limits as far as the Great British public is concerned.
Rob Mansfield, IFA at Rootes Wealth Management, believes it’s time to merge income tax and national insurance, after years of “tinkering” and minimal effect.
“It will affect pensioners, who don’t pay national insurance, but it should also be an easier and therefore cheaper system to administer,” Mansfield adds. “Our tax system is too complicated and so simplifying this also brings in question how relevant salary sacrifice would be without national insurance.”
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