SaralnamaThe UK Treasury is planning to expand national insurance to include rental income, which could raise about £2 billion. This tax change may be announced in the autumn budget of 2025. Currently, rental income is exempt from national insurance, but the new tax would apply an 8% rate similar to employee earnings. The government aims to reduce a £40 billion public finance shortfall. Some MPs, including Labour and Conservative members, earn rental income. Experts warn that taxing landlords might reduce rental housing supply and increase rents for tenants. Property website Zoopla says this tax talk could slow down the housing market, especially for homes priced under £500,000. Other possible measures include a tax on home sales over £500,000 and removing capital gains tax exemption on homes above £1.5 million. The Treasury has not confirmed these plans but focuses on economic growth and keeping taxes low for working people. (Updated 28 Aug 2025, 17:14 IST; source: link)