Landlord news · 29 October 2026 · England, Wales, Northern Ireland
Budget: rental income tax rises again from 2027
The Chancellor has announced a further two-percentage-point rise in tax on rental income from April 2027, on top of a rise announced in November 2025.
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This affects landlords taxed under the income tax rates set for England, Wales and Northern Ireland.
What happened
The Budget confirmed a further two-percentage-point increase in tax on property income, taking effect from April 2027. This comes on top of a two-percentage-point rise already announced in November 2025, so the combined increase over the two Budgets is four percentage points.
According to the announcement, this will take the basic, higher and additional rates on property income to 24%, 44% and 49% respectively.
The Budget did not include any reduction in the stamp duty surcharge on additional residential properties, and no new tax incentives for landlords or measures aimed at expanding private rental supply. Separate announcements covered support for social and affordable housing, including VAT relief on qualifying land sales to social housing providers and cheaper borrowing for councils.
Who it affects
This affects landlords who pay income tax on rental profits under the rates set by the UK government, which apply in England, Wales and Northern Ireland.
Scotland sets its own income tax rates separately through the Scottish Budget.
The change takes effect from April 2027, so it does not apply to the current tax year.
What to do
- Note the April 2027 start date and review what it means for your expected rental profit
- If you're a Scottish taxpayer, check the Scottish Budget separately for confirmation of any change to rates on rental income
- Check with an accountant about how the increase affects you
- Keep an eye out for further detail from HMRC on how the new rates will apply
Source: Property Investor Today, 29 October 2026. A plain-English summary of that source, linked so you can read it yourself. It sits beside your solicitor or accountant rather than in place of them: where a decision turns on your own circumstances, ask them.
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