Budget 2026: the proposed rise in tax on rental income from April 2027
What is already law, what Budget 2026 proposes for property income tax rates from 2027 to 2028, and what is still unclear on mortgage interest.
The Budget on 28 October 2026 announced higher Income Tax rates on property income, including rent, from the 2027 to 2028 tax year. Here is what is already law, what is only proposed, and what is still unclear.
What is already law
Finance Act 2026 already sets separate property rates of Income Tax for the 2027 to 2028 tax year:
| Band | Rate in Finance Act 2026 | |