UK AUTUMN BUDGET 2026 SERIES – PART 2 - SAVINGS AND PROPERTY INCOME: WHAT THE NEW TAX RATES MEAN FOR YOU
The UK Autumn Budget 2026 announced changes to Income Tax rates on savings and property income from 6 April 2027. These changes may affect individuals earning interest from savings and landlords receiving rental income.
Although the changes will not affect everyone, understanding your income and available tax allowances can help you plan ahead.
1. What Are the New Tax Rates?
From 6 April 2027, the announced rates for taxable savings income will be:
Basic rate: 24%
Higher rate: 44%
Additional rate: 49%
The same rates will apply to property income in England, Wales and Northern Ireland. Savings income rates apply across the UK. Scottish taxpayers may have different arrangements for property income.
These are rates on the relevant taxable income, not on the total amount of savings or rental income received.
2. How Could This Affect You?
For example, a landlord with £10,000 of taxable property income falling entirely within the basic property income rate would pay £2,400 at the new 24% rate, compared with £2,200 at 22%.
This is an illustrative example only. Actual tax depends on the individual's income, expenses, allowances and circumstances.
Individuals receiving savings interest should also remember that tax-free allowances and eligible ISA savings can affect whether tax is payable. The Budget confirmed that the annual cash ISA limit will remain at £20,000.
3. ASESA Advice: What Should You Do?
We recommend that clients take the following steps before the changes begin:
Landlords: Review rental income, allowable expenses and expected taxable profit for 2027–28.
Savers: Check annual interest received and whether it exceeds available tax-free allowances.
Individuals with multiple income sources: Consider how savings or property income may affect their overall tax position.
Everyone affected: Keep accurate records and review existing tax planning before making financial decisions.
4. How ASESA Can Help
The impact will vary depending on your income and personal circumstances. A review in advance can help identify potential tax exposure and whether your current arrangements remain suitable.
Taking these steps in advance can help businesses maintain compliance and reduce the risk of underpayment.
ASESA Solutions Ltd can assist with reviewing savings and rental income, understanding the potential tax impact and identifying appropriate next steps.
Please contact us if you would like assistance reviewing your tax position ahead of the 2027–28 tax year.
Plan ahead. Understand your income. Make informed tax decisions.
Need support with your Tax related queries?
ASESA Solutions Ltd can assist with accounting, bookkeeping, payroll, Personal Tax Returns and other services.
📞 020 3983 9881 📧 sales@asesa.co.uk
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