How much will the April 2027 property tax rise cost me?
From 6 April 2027, rental profit in England and Northern Ireland is taxed at its own rates: 22%, 42% and 47%, two points higher than now. The tax credit for mortgage interest rises to 22% too. See the difference for you.
2026-27 and 2027-28
What this assumes
Guidance, not tax advice. Rules change; check GOV.UK or an accountant for your situation.
Questions
What are the new property income rates?
From 6 April 2027, property income is taxed at 22% (basic rate), 42% (higher rate) and 47% (additional rate) in England and Northern Ireland. Scotland and Wales are expected to set their own property rates.
What happens to mortgage interest relief?
Residential landlords still cannot deduct mortgage interest. Instead they get a tax credit, which rises from 20% to 22% of finance costs from April 2027.
Does this affect Making Tax Digital?
Separately, landlords with qualifying income over £50,000 have been in Making Tax Digital since April 2026, with the threshold falling to £30,000 in April 2027 and £20,000 in April 2028.