The Chancellor’s Autumn Budget has introduced significant revisions to personal and property taxation, headlined by a planned 2% increase in income tax rates applicable to property and savings income taking effect from April 2027.
Announced alongside updated Office for Budget Responsibility (OBR) economic forecasts, the fiscal package aims to bolster government revenues while navigating tighter borrowing headroom across the public sector.
Key Property and Personal Tax Overhauls
- Property Income Tax Hikes (From April 2027): Rates for individual landlords across England and Northern Ireland will rise to 24% for the basic rate, 44% for the higher rate, and 49% for the additional rate(representing a four-percentage-point increase above standard income tax baselines).
- Capital Gains Tax (CGT) and Stamp Duty: Main residential CGT rates remain unchanged at 18% and 24%,while Stamp Duty Land Tax (SDLT) structures and additional property surcharges remain untouched following earlier government reviews.
- Business Asset Disposal Relief (BADR): The lifetime limit for BADR will be halved from £1 million to £500,000 starting April 2027, reducing maximum tax relief for qualifying business owners and property entrepreneurs.
- Trading Allowance Reform: The personal trading allowance will triple from £1,000 to £3,000 from April 2027,simplifying tax positions for minor self-employed income streams.
Implications for Private Landlords
Industry advisors note that the continued upward pressure on property income tax rates—combined with existing mortgage financing pressures—will likely accelerate portfolio restructuring, as individual unincorporated landlords weigh long-term rental yield viability against rising tax overheads.
