The 28 October Budget did not single out overseas owners with a new surcharge, but it does raise tax on UK rental income for everyone, wherever they live. If you are a British expat or foreign national with a UK let, here is what changes and what to do next.
What the Budget changed for expat landlords
Rental income tax goes up from 6 April 2027. Property income in England, Wales and Northern Ireland will be taxed at 24% (basic), 44% (higher) and 49% (additional). As a non-resident you still pay UK tax on UK rent, so this applies to you too.
Rent paid to you from abroad may be taxed at source at a higher rate. Under the Non-Resident Landlords Scheme, your letting agent or tenant normally deducts basic-rate tax before paying you, unless HMRC has approved you to receive rent gross. Reporting after the Budget suggests that withholding rate is expected to rise from 20% to 24%.
No new surcharge for non-UK owners, for now. Reports confirm no decision was taken on a surcharge for non-resident property owners and no exit tax on unrealised gains was announced.
Leaving a UK home empty? Watch the £2m surcharge
The High Value Council Tax Surcharge on homes worth £2 million or more is still due from April 2028, at £2,500 to £7,500 a year. The threshold was not lowered. However, the government has said it intends to double the charge on homes left empty for 12 months or more, which matters if you plan to keep a London home while living overseas.
What this means for your mortgage
Buy-to-let lenders test affordability on rent, and many look at your tax position, especially if you hold property personally. Higher tax can affect how much you can borrow on a remortgage or a new purchase. Expat lending is a specialist area: fewer lenders, more paperwork, and criteria that vary by country of residence and income currency. Getting your figures in order early gives you more choice.
Quick tips
- Check how your rent is paid. If tax is deducted at source, ask your accountant whether applying to HMRC to receive rent gross makes sense.
- Re-run your numbers at the new rates before your next remortgage or purchase.
- Keep a portfolio schedule up to date with each property, lender, balance, rent and deal end date.
- Have proof of overseas income ready: payslips, bank statements and, where relevant, employer letters in English.
- Plan 3–6 months ahead of a fixed rate ending, as expat cases often take longer.
- Take tax advice. We arrange the mortgage; your accountant advises on tax and structure.
How OMB can help
Our CeMAP-qualified advisers work with expats and foreign nationals in the UAE, Singapore, Hong Kong and beyond. Download our free expat and foreign national mortgages guide, test your rental figures with the buy-to-let calculator, or see how we helped a client in our Singapore expat case study. Our client toolkit includes a portfolio schedule you can fill in before we speak.
Most buy-to-let mortgages are not regulated by the FCA. We do not give tax advice.
Sources
- Connexion – UK Autumn Budget 2026: changes for Britons living in France (28 Oct 2026, updated 30 Oct 2026)
- Smart Currency Exchange – UK Budget 2026: good news for overseas property buyers? (30 Oct 2026)
- NRLA – Budget 2026: new landlord tax raid announced (28 Oct 2026)
- GOV.UK – What the Non-Resident Landlords Scheme is
To talk it through, contact us or start your enquiry.
Important: This guide is general information, not personal advice. Rules, rates and lender criteria change; speak to an adviser about your circumstances. Your home may be repossessed if you do not keep up repayments on your mortgage.