Property income tax rises to 24%, 44% and 49% from April 2027

The Autumn Budget on 28 October 2026 added a further two points to income tax on property income, on top of a two-point rise already legislated for April 2027. According to reporting from Mortgage Strategy and Property Week, the rates paid by landlords who hold property in their own name become 24% (basic), 44% (higher) and 49% (additional) from the 2027 to 2028 tax year, compared with 20%, 40% and 45% today.

For landlords in Huntingdon, St Ives and the villages around them, that is a real change to the maths of a personally held rental, and it lands as the Renters' Rights Act and the new compliance rules are already reshaping the job.

Who is actually affected by the new rates?

The rise applies to individuals who receive rental income, which covers most landlords across Huntingdonshire who own one to a handful of properties in their own name. Property held through a limited company stays within Corporation Tax, so it is not hit by this specific income tax change, although company landlords face their own costs when they extract profit.

• Landlords holding in their own name: directly affected.
• Landlords who pay higher-rate tax and carry a mortgage: most exposed, because the rise stacks on top of Section 24 limits on interest relief.
• Limited company landlords: not affected by this change.
• Capital Gains Tax and Stamp Duty on residential property were reported as unchanged in the Budget.

What does it cost on every £10,000 of rental profit?

A simple illustration of tax on £10,000 of taxable rental profit before any reliefs, comparing today's rates with the rates from April 2027. It is general, not a personal calculation.

Every band pays an extra £400 per £10,000 of profit, so the percentage hit is largest for the basic-rate landlord with a single let. Anyone whose profit already sits close to the higher-rate threshold should look at the numbers early.

Should landlords sell, incorporate or hold?

There is no single answer, and a rushed decision can cost more than the tax rise. Moving a property into a company is treated as a sale for tax purposes, so Capital Gains Tax and Stamp Duty can apply on the way in. Our earlier piece on Section 24, Capital Gains and incorporation sets out the trade-offs, and an accountant should model your actual figures before you act.

What you can control is the income side. A well-let property in the patch, rented at a sensible level to a reliable tenant with compliance paperwork in order, protects the profit you are about to be taxed on. The Tenancy MOT checks your tenancy, rent and compliance position, and our buy-to-let guidance covers where the numbers still work.

What should Huntingdonshire landlords do before April 2027?

• Work out your 2027 to 2028 profit and which band it falls in.
• Ask your accountant whether pension contributions or timing can keep you below a threshold.
• Review each property's rent against the market; any increase must follow the once-a-year Section 13 process.
• Check compliance (gas, electrical, EPC, alarms) so avoidable fines do not add to the bill.
• Talk to a letting agent about management options if time spent on the property is eating into the return.

We let across Huntingdon and Brampton and the villages between, and we are happy to talk through the rental side of your numbers.

This article is general information, not tax or financial advice; take advice from a qualified accountant. Sources: Mortgage Strategy and Property Week Autumn Budget 2026 reporting (28 October 2026); HMRC guidance on tax relief for residential landlords. Rates are as reported at 3 November 2026 and apply to England; check the legislation when it is published.