How the calculations work

THE DETAIL BEHIND THE NUMBERS

What this means for your calculation

Property cash flow is rent after voids, less running costs, finance costs, non-allowable cash costs and capital repayments. Personal tax is the difference between total liability with the portfolio and liability on other income alone. Salary and dividends are added sequentially so mixed portfolios share allowances and bands.

How are property-level taxes allocated?

The dashboard allocates aggregate personal tax in proportion to positive taxable property profit, and company taxes in proportion to positive company profit. These are presentation allocations, not standalone tax assessments.

Model boundaries

2026/27 covers UK-resident individuals in England, Wales and Northern Ireland. 2027/28 covers England and Northern Ireland only, because Welsh and Scottish property rates are set separately and were not confirmed. Ordinary UK residential lettings, one UK property company and a full-year category A director are in scope. No savings income, tax credits, personal pension deductions, Gift Aid, marriage allowance, the proposed Pension Tax Allowance, non-resident rules, trusts or mixed-use property. Existing other property profit is assumed already net of allowable costs with no additional finance relief.

Company accounting period

2026/27 company figures use Corporation Tax financial year 2026, wholly within 1 April 2026 to 31 March 2027. 2027/28 uses financial year 2027, wholly within 1 April 2027 to 31 March 2028. Those two financial years have the same enacted rates. Short-period amounts must be entered as period totals. No apportionment across financial years or brought-forward company reserves or losses is modelled. Salary is assumed wholly and exclusively allowable. Current-year company losses receive no immediate relief.

Tax allocation and cash flow

In 2026/27 the Personal Allowance is allocated between non-savings income and dividends at the breakpoints that give the lowest tax, including the point where the dividend nil rate is exactly used. From 2027/28 the allowance is used against non-property income first, and property income is taxed at its own rates. Personal rental tax is measured before company extraction. Incremental salary and dividend tax includes changes to the allowance, existing dividend tax and finance relief. Property allowances replace tax deductions but never remove actual cash expenses.

Configured 2026/27 rates

Dataset 2026-11-04.1.

• Checked on 4 November 2026 against Finance Act 2026 and Budget 2026 OOTLAR Annex A. The 2026/27 main rates, dividend rates, National Insurance and Corporation Tax figures below are unchanged. Property income is still taxed at the main rates. Dividend ordinary and upper rates of 10.75% and 35.75% are enacted by Finance Act 2026 section 4; the dividend additional rate remains 39.35%.

Source register for 2026/27

Configured 2027/28 rates

Dataset 2026-11-04.1.

• Enacted property rates for 2027/28 are 22%, 42% and 47% (Finance Act 2026, section 7). Finance-cost relief is the property basic rate of 22% (Finance Act 2026, Schedule 1, paragraph 40). The Personal Allowance is used against income that is not property, savings or dividend income before it is used against property or dividends (Finance Act 2026, section 6).
• Not yet law: Budget 2026 on 28 October 2026 announced property rates of 24%, 44% and 49%, and savings rates of 24%, 44% and 49%, from 6 April 2027. They are to be included in Finance Bill 2026-27, which had not received Royal Assent on 4 November 2026. This calculator does not use 24/44/49. If that Bill is enacted, the finance-cost relief rate follows the new property basic rate.
• Main Income Tax rates of 20%, 40% and 45% for 2027/28 are the rates Budget 2026 says Finance Bill 2026-27 will set. They are not yet enacted. The £12,570 Personal Allowance and £37,700 basic-rate limit are enacted by Finance Act 2026 section 10 through 2030/31. The £125,140 higher-rate limit is the figure in Budget 2026 OOTLAR Annex A for both 2026/27 and 2027/28.
• Class 1 National Insurance for 2027/28 uses the weekly thresholds and rates in Budget 2026 OOTLAR Annex A. The annual director thresholds are the annual equivalents HMRC already publishes for those same weekly amounts. No separate 2027/28 employer-rates instrument was identified on 4 November 2026.
• Wales: SI 2026/1023 brought the Senedd's power to set 2027/28 property rates into force. No confirmed Senedd property-rate resolution was found, so a Welsh resident cannot be calculated. Scotland is unsupported. Savings income and the Pension Tax Allowance in Finance Bill 2026-27 are not modelled. The trading allowance increase to £3,000 does not change the £1,000 property allowance.

Source register for 2027/28

Tax rates last verified: 04 November 2026 · Official sources