Autumn Budget - A Storm Brewing Back Home: What UK Expats in Thailand Need to Know
- Scott Jordan
- Sep 4
- 2 min read
While we settle into the rainy season here in Thailand, there's another kind of storm on the horizon, this one brewing in the UK. With the Autumn Budget fast approaching, UK expats who still hold assets back home should be paying close attention to the potential changes coming down the line.
Many expats living in Thailand still own property in the UK, often relying on rental income to support their lifestyle. However, over the past few decades, UK landlords have faced increasing pressure. The once-attractive buy-to-let model has become less rewarding due to a string of tax reforms. Today, landlords must pay income tax on the full rental amount, with only a 20% tax credit available for mortgage interest, meaning the government is taking a much larger slice of the pie.
Now, fresh rumours suggest further changes may be on the way. The upcoming budget could see National Insurance Contributions applied to rental income, a significant extra cost for landlords. Capital Gains Tax (CGT) is also under scrutiny. With the annual CGT allowance having steadily declined in recent years, any sale of UK property may soon carry an even heavier tax burden.
It’s not just income and capital gains under the microscope, Inheritance Tax (IHT) is also in focus. The 2024 Autumn Budget announced that from April 2027, any unused pension benefits will become liable to IHT, which was previously not the case. Now, there’s growing speculation that further reforms are coming. These may include:
The abolition of the 7-year gifting rule, which would make passing assets to loved ones during your lifetime far more difficult;
A reduction in the tax-free allowance, currently set at £325,000 – potentially increasing the tax bill for your estate.
What does this mean in real terms?
Consider a single person with a UK property worth £300,000 and a pension pot of £200,000. From April 2027, this individual could face an Inheritance Tax liability of £70,000, significantly reducing what is left for beneficiaries.
Now is the time to act.
With so many changes on the horizon, it’s more important than ever to ensure your assets are structured efficiently. Seeking professional financial advice can help you:
Minimise future tax liabilities;
Protect your income;
Ensure your loved ones receive what they deserve.
We’ve chosen to live in Thailand for the lifestyle, the climate, and the peace of mind. Don’t let uncertainty back in the UK cast a shadow over that. A little planning now can go a long way in securing your financial future and your legacy.
Don’t wait for the UK budget storm to catch you off guard. The right planning today can save you significant tax tomorrow.
👉 Book a free consultation with UK qualified Financial Planner Scott Jordan to review your UK assets and make sure they’re working for you, not against you.
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