Budget 2026, on 28 October 2026, made six changes that matter to UK landlords. The biggest is a further rise in the tax on rental profit from 6 April 2027, to 24%, 44% and 49%. Most of these were announced for Finance Bill 2026-27, so they are not yet law, and this guide says which is which.
The six changes at a glance
| Change | From | Status |
|---|---|---|
| Property income tax rates of 24%, 44% and 49% | 6 April 2027 | As announced; Finance Bill 2026-27 |
| No MTD late submission points for April 2027 joiners | 2027 to 2028 tax year | As announced |
| Some groups exempt from MTD until further notice | Law due before April 2027 | As announced |
| Letting agents and deposit schemes reporting data to HMRC | No start date given | Consultation to 20 January 2027 |
| Late filing penalties on a 60 day property return stop once the sale is on your tax return | Tax returns delivered from 28 October 2026 | Finance Bill |
| No Stamp Duty on the rent under an assured tenancy | 1 May 2026 | Not collected since then; Finance Bill 2026-27 |
Landlord tax rates from April 2027
Budget 2025 announced separate property income rates of 22%, 42% and 47%, and Finance Act 2026 set them for 2027 to 2028. Budget 2026 announced two more points. As announced, the property basic rate will be 24%, the higher rate 44% and the additional rate 49% from 6 April 2027, in England, Wales and Northern Ireland. The law still says 22%, 42% and 47% until Finance Bill 2026-27 passes.
The finance cost credit under Section 24 moves with them. Finance Act 2026 changed that credit to the property basic rate, so at 24% the credit would be 24% rather than 20%. Scotland and Wales have been given the ability to set their own property income rates, so check what your government announces. Our guide to the new rates has two worked examples, and the Section 24 calculator shows today's position.
Making Tax Digital: a first year without penalty points
As announced at Budget 2026, the government will not apply late submission penalty points to quarterly updates for the 2027 to 2028 tax year for people required to join MTD in April 2027. That group is landlords and sole traders with qualifying income over £30,000 on their 2025 to 2026 return. You still have to send the updates before you can submit your tax return, so this is not a year off. People who joined in April 2026 are not covered by it. Our guide to MTD penalties explains what still applies.
Making Tax Digital: exempt until further notice
The Budget also said the government will exempt three groups until further notice: people eligible for qualifying care relief, such as foster carers, non-UK resident foreign entertainers and sportspeople, and expected non-resident customers. Secondary legislation is due before April 2027. Our guide to MTD exemptions covers the other groups.
HMRC wants more data from letting agents
HMRC published a consultation on the day of the Budget on how letting agents and tenancy deposit schemes report property income data. It plans to replace yearly notices with a standing duty to report, more often, including tax identifiers for new landlords. Letting agents reporting rent to HMRC sets out what is proposed and what it means for you.
Capital Gains Tax: late filing penalties on a 60 day return
When you sell a UK home and owe Capital Gains Tax, you must report it and pay on account within 60 days of completion. If you miss that, late filing penalties apply. From 28 October 2026, if you later report the sale on your Self Assessment return, the duty to file the property return ends when you submit that return, and the penalties stop growing from that point. It does not remove the 60 day requirement, so the 60 day rule still stands.
Stamp Duty on rent under an assured tenancy
This one protects tenants rather than landlords. Because the Renters' Rights Act moved tenancies from fixed terms to rolling ones, the value of rent could build up within a single tenancy and pass the Stamp Duty threshold. The government announced on 22 April 2026 that Stamp Duty would not apply to rent under an assured tenancy, and it has not been collected since 1 May 2026. Finance Bill 2026-27 makes that law. Tenants also do not need to file a return just because rent is payable under an assured tenancy.
What did not change
- MTD thresholds and dates. Over £30,000 from 6 April 2027 and over £20,000 from 6 April 2028, as on GOV.UK's eligibility guidance.
- The High Value Council Tax Surcharge. This was announced at Budget 2025 and is still on the way: an annual charge on owners of residential property in England worth £2 million or more, from April 2028.
- The landlord database. The Budget costings mention the landlord registration fee, and GOV.UK's guidance sets it at £65 per property a year. Our guide to the PRS database has the dates for your region.
What to do now
- Run your 2027 to 2028 tax at the new rates, and treat them as announced until the Finance Bill passes.
- Check whether MTD applies to you with the MTD checker, and read what changes for landlords in April 2027.
- Check that the rent your agent records for you matches what you declare.
We make VoxaMTD, which records rent and expenses and sends MTD quarterly updates. See how it works or start free, no card needed.
Sources
- Budget 2026: overview of tax legislation and rates (GOV.UK), read on 4 November 2026.
- Budget 2026 document (GOV.UK), read on 4 November 2026.
- Income Tax: changes to tax rates for property and savings income (GOV.UK), read on 4 November 2026.
- Improving Property Income Data Reporting: consultation (GOV.UK), read on 4 November 2026.
- Capital Gains Tax: late filing penalties for returns for disposals of UK residential property (GOV.UK), read on 4 November 2026.
- Stamp Duty Land Tax: assured tenancies (GOV.UK), read on 4 November 2026.
- High Value Council Tax Surcharge (GOV.UK), read on 4 November 2026.
- Check if you're eligible for Making Tax Digital for Income Tax (GOV.UK), read on 4 November 2026.
- Register your rental property service: guidance for landlords (GOV.UK), read on 4 November 2026.
- Finance Act 2026, section 7 (legislation.gov.uk), read on 4 November 2026.
- Finance Act 2026, schedule 1 (legislation.gov.uk), read on 4 November 2026.
This guide is general information, not tax advice.