Self-assessment Landlords &
+4% tax increase
About the increase
Chancellor Rachel Reeves announced on 26 November 2025 a +2% increase in tax rate for investment properties owned by individuals starting on 6 April 2027. Chancellor John Healey announced another +2% increase in tax rates on top of this for investment properties owned by individuals on 28 October 2026. The effective date of 6 April 2027 remains unchanged.
The war on landlords continues and emphasises what we've known for a while:
- You need to know your numbers!
- You need to know how this will affect you.
- You need to know what your tax situation will be as a result of the changes.
- If you’re going to make decisions about your portfolio, it needs to be based on accurate information not gut feel and guesses
- Proactive planning ahead of time always beats reactive planning after the fact.
Our calculator
- Tab #1: how much more tax will you pay from 6 April 2027, given the new rates? How much does your annual cash flow change?
- Tab #2: what would your personal situation look like if you didn’t own property? How would your annual cash flow and effective tax rate change?
- Input tab: Using your most recent tax return (SA302 and the detailed property numbers from the UK Land and Property Sheet) you fill in your last year’s numbers.
Some explanations and assumptions about our calculator:
- The calculator is for landlords in England and Wales only. It does not cover Scottish taxpayers.
- It assumes your next year will be the same as your last year.
- If this is not the case you can put in estimated next-year figures to determine the likely impact.
- Tax is complicated and thus some simplifying assumptions have been made – the calculator omits student loans, married couple allowance transfers, higher income child benefit, gift aid, etc).
- It assumes you have no brought-forward losses in your portfolio. If you do you may wish to omit these to see what your tax charges will likely be once they are no longer available.
Need more help?
Do you need help with your tax return, personal or company accounts? We can help.
Where an investor sells a personally held property, capital gains tax needs to be calculated and the estimated tax paid over within 60 days to HMRC. We can help.
Please do reach out to us if you think you need additional help – contact us.