Budget 2026: what was announced for landlords
The Chancellor delivered Budget 2026 on Wednesday 28 October 2026. Before the Budget, our guide to landlord tax, confirmed versus rumoured said the rise in tax on rental income from April 2027 was the one to plan for. The Budget has now confirmed the rates, and gone further.
Here is what the Budget document says for landlords, in plain English. Everything below is taken from the published Budget 2026 document on GOV.UK.
Property income tax rates are going up again
Budget 2025 had already increased the rates of tax on property income by 2 percentage points across all bands from April 2027. Budget 2026 adds a further 2 percentage points from that same date.
According to the Budget document, from 2027 to 2028:
| Band | Property income rate |
|---|---|
| Property basic rate | 24% |
| Property higher rate | 44% |
| Property additional rate | 49% |
The Budget says these rates will apply across England, Wales and Northern Ireland, will be legislated for in Finance Bill 2026-27, and take effect from 6 April 2027.
These are the announced rates. They still need to pass into law through the Finance Bill, so check GOV.UK for the final position.
More property income data for HMRC
The Budget says the government has published a consultation on modernising how property income data from third parties is collected and used by HMRC, "to help customers get their tax right first time". HMRC published that consultation, Improving Property Income Data Reporting, on 28 October 2026. It covers data reported by letting agents and tenancy deposit scheme providers, and closes on 20 January 2027. Elsewhere, the Budget says the government will consult on expanding third party reporting requirements for property income data. For that wider expansion, the Budget does not say which third parties, or from when.
Making Tax Digital for Income Tax
For landlords due to join Making Tax Digital for Income Tax in April 2027, the Budget says taxpayers joining in April 2027 "will not receive penalty points for late submission of their first four quarterly updates for the tax year 2027-28". It also says the government is deferring the roll-out to "several taxpayer groups until further notice", without listing them in the main document. Our Making Tax Digital guide for landlords explains how quarterly updates work.
What the Budget did not change for landlords
We found no change to Capital Gains Tax rates on residential property in the Budget document. The new Capital Gains Tax Founders' Relief announced in the Budget is for qualifying founders of high growth companies, not for rental property.
The PRS database fee
The regulations do not set the fee. In Parliament on 28 October 2026, ministers said the Government has separately announced a fee of £65 per property per year, pro rata during the initial roll-out.
What to do now
Nothing changes on your tax bill today. The new rates are planned from 6 April 2027 and still have to be legislated. A few sensible steps:
- Keep your records tidy. Good records make any tax change easier to work through. Our guide to how long to keep landlord records sets out what to keep.
- Know your allowable costs. Our allowable expenses guide covers the costs landlords commonly claim.
- Take advice on your own position. How the new rates affect you depends on your income and how you own your properties. Speak to a qualified tax adviser before making any decisions.
This is general information about announced Budget measures, not tax or legal advice about your own lettings.
Keep each property's paperwork in one place
LandlordProof gives you one place for each property's certificate dates and documents, with email reminders before each date comes up, so the paperwork side of letting is under control while the tax side changes. Your first property is free, with no time limit and no card needed. Start free.
Start free →LandlordProof helps you organise your certificates, documents and reminders. Using it does not by itself meet your legal duties as a landlord, and it does not register you on the PRS database.
Sources: GOV.UK, Budget 2026 (HTML), published 28 October 2026; GOV.UK, Budget 2026 speech; GOV.UK, HMRC consultation, Improving Property Income Data Reporting (28 October 2026); Hansard, Commons Delegated Legislation Committee, Draft Private Rented Sector Database Regulations 2026 (28 October 2026).