LANDLORD MONEY · GUIDES & TOOLS

Property income tax from April 2027

See how separate property rates change the order of income and finance-cost relief.

THE DETAIL BEHIND THE NUMBERS

What this means for your calculation

Property income is no longer just another slice of non-savings income. It sits above employment and pensions, and below savings and dividends, and it has its own rates. The allowance cannot be moved onto property or dividends while employment income is still uncovered, even where that would have produced a lower bill.

In practice

Someone with £10,000 of employment income and £40,000 of property profit pays £8,234.60 under the enacted ordering. Giving the allowance to the property income first would charge £8,034.60, but that allocation is not allowed from April 2027.

Does the future change apply everywhere in the UK?

The enacted rates apply in England and Northern Ireland. The Senedd and Scottish Parliament can set their own property rates. This model does not guess those rates. Savings-rate changes are UK-wide but savings income is not modelled.

Primary sources

Tax rates last verified: 04 November 2026 · Official sources

Information, not advice. Landlord Money provides estimates for general information and educational purposes only. It does not provide tax, accounting, financial, investment, mortgage or legal advice. Tax treatment depends on individual circumstances and may change. Check calculations with HMRC and consider professional advice before making financial, ownership or tax decisions.