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Landlords: new property income tax rates from April 2027
Rental profits will be taxed at their own rates of 22%, 42% and 47% from 6 April 2027 — 2 percentage points more than today.
From 6 April 2027, income from property will have its own income tax rates, separate from the rates on salary and business profits. The change is now law under the Finance Act 2026.
The new property rates (England, Wales and Northern Ireland)
- Property basic rate: 22% (currently 20%)
- Property higher rate: 42% (currently 40%)
- Property additional rate: 47% (currently 45%)
Who is affected
Individual landlords who own rental property in their own name, including furnished holiday lets and property held jointly. Companies that own property pay corporation tax instead, so these rates do not apply to them.
What to think about now
- Review your expected rental profits for 2027/28 and beyond
- Check whether ownership between spouses or partners is still right for you
- Landlords with property and self-employment income over £50,000 are already in Making Tax Digital — the threshold drops to £30,000 from April 2027
We can model your figures under the new rates and talk through your options.
Want help with this?Talk to a Beatax accountant — no jargon, no chasing.