New Changes to Property Incorporation from April 2026 – Budget Nov 2025
Incorporation Relief under Section 162 TCGA 1992 allows a landlord to defer Capital Gains Tax when a property business is transferred into a company in exchange for shares. The relief applies when the rental activity meets the recognised test for a business, rather than a passive investment. Under the current rules, incorporation relief applies automatically when the conditions in s162 are met. From April 2026 the Government will shift incorporation relief from an automatic rule to a claims-based relief.