Landlord tax from April 2027: what the new 24% rate costs you

What changed in the Budget

Last year's Budget already set separate, higher tax rates for rental income from April 2027. On 28 October 2026 the Chancellor added a further 2 percentage points on top.

Two other changes catch people out:

• Your personal allowance goes on your other income first. From 2027/28, your tax-free allowance is used against your salary or pension before your rent, so more of your rent is taxed at the higher property rates.
• Making Tax Digital starts for more landlords. If your rent plus any self-employed turnover is over £30,000, you'll have to keep digital records and send HMRC quarterly updates from April 2027. It drops to £20,000 in April 2028.

What you can still do

• Make sure every allowable cost is claimed: letting fees, repairs, insurance, ground rent, accountancy, travel to your properties.
• Check joint ownership. If a property is jointly owned, how the income is split between you can change the tax.
• Talk to an accountant before restructuring, for example moving properties into a company. It has its own costs and taxes.