Lettings & tax update · Checked 27 October 2026
Landlords holding property personally have a forthcoming change to include in their planning. The Finance Act 2026 sets separate property income rates for 2027–28: 22% basic, 42% higher and 47% additional.
These are future rates
The change takes effect from April 2027, not in the current 2026–27 tax year. Government guidance describes the measure as applying to England, Wales and Northern Ireland, with provisions for devolved property-income powers. Scottish taxpayers should check their own position; Welsh taxpayers should monitor any devolved changes.
Review the right numbers
Ask your accountant for an after-tax forecast using your actual income, expenses, finance-cost treatment and other earnings. Rates alone do not determine the final bill. Company-owned property needs separate analysis: these personal Income Tax rates are not a company Corporation Tax change.
Plan ahead
A forecast helps you budget for maintenance, voids and tax payments. Review it before buying or refinancing, and avoid assuming a different ownership structure automatically saves tax.
For rental advice and management, contact & Co. For a personal calculation, speak to a qualified tax adviser.
Sources: Finance Act 2026, section 7; HMRC property income policy paper.
