What changes

From tax year 2027 to 2028 the property basic rate will be 24%, the property higher rate 44%, and the property additional rate 49%. The Overview of tax legislation and rates (OOTLAR) for Budget 2026 states those figures and says the changes take effect from 6 April 2027. Annex A to the same publication lists the same three rates for 2027 to 2028, and marks the property rates as not applicable for 2026 to 2027 because the main income tax rates still apply to property income in that year.

Budget 2025 had already raised the rates of tax on savings and property income by two percentage points across all bands from April 2027. The Budget 2026 document says the government will raise those rates by a further two percentage points from that date. The 24%, 44% and 49% figures are the combined result.

Where the rates apply

OOTLAR says the rates apply across England, Wales and Northern Ireland. It also says Scotland and Wales have the ability to set property income rates in line with their current income tax powers. The Budget 2026 documents read for this item do not state a separate Scottish property rate schedule for 2027 to 2028.

HMRC rates note (29 October 2026)

HMRC's technical note Income Tax: changes to tax rates for property and savings income, published 29 October 2026, confirms the same property rates of 24%, 44% and 49% from April 2027 for England, Wales and Northern Ireland. It also sets a 49% property trust rate for tax year 2027 to 2028 onwards.

The note estimates that around 5% of taxpayers will see an average tax rise of £225 a year in 2027 to 2028 from the property rate increase, and that by 2031 to 2032 about 2.4 million landlords will face changes in tax as a result of the measure. The Exchequer impact table in the note shows a yield of £575 million in 2028 to 2029 for the property income rate rise, certified by the Office for Budget Responsibility.

Non-resident landlords

The Budget 2026 OOTLAR entry on property rates, the Budget 2026 document, and the HMRC 29 October note do not address how the new rates treat non-resident landlords.

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Sources

Sources read 29 and 30 October 2026 (Asia/Singapore).