Changes from 6th April 2027

Tax on Rental Profit

Currently Rental Profit has been taxed at the same rate as normal income tax (20%, 40%, 45%) but for the 2027 28 tax year the tax rates will increase by 2% (22%, 42%, 47%).

Interest Income

Currently taxable Interest Income has been taxed at the same rate as normal income tax (20%, 40%, 45%) but for the 2027 28 tax year the tax rates will increase by 2% (22%, 42%, 47%). 

Benefit in kind reporting 

This was timed to start from April 2026 but has been delayed to April 2027.

Currently if any employer gives someone a Benefit in Kind the employer reports it to HMRC at the end of the tax year and issues a P11D. From April 2027 all Benefits in Kind Reporting has to be done monthly through PAYE (and therefore taxed monthly) and P11D’s will cease to exist, the last P11D being issued for the 2026 27 tax year.