The October Budget has given landlords another figure to put into next year’s forecast. If you let property in your own name, this is a good time to see what the announced tax rates would mean for the money you actually keep.
What changed in the Budget?
On 28 October, the Government announced a further two percentage point rise above the property income tax rates already planned for April 2027. Under the announcement, the basic, higher and additional rates on property income will be 24%, 44% and 49% respectively from 6 April 2027. The measure is due to be legislated through the Finance Bill.
These are Income Tax rates. Rental profits earned by a limited company are taxed under a different framework. If you own some properties personally and others through a company, ask your accountant to look at each part of the portfolio separately.
Start with the rent you actually received
Pull together your last 12 months of rent statements and invoices. Include any weeks the property sat empty, the cost of getting it ready between tenants and repairs you know are coming up. If your mortgage deal is due to end, include that date too. Your accountant can use those records to estimate what the change means for you.
It’s worth keeping two figures in view: what’s left in the bank after running the property, and the profit your accountant calculates for tax. They can differ, particularly where finance costs are involved.
Look at the costs you can control
When money is tighter, small decisions deserve a closer look. If a leak keeps coming back, look at what you’ve spent on repeat visits and ask whether a proper investigation would save another call-out. When comparing management fees, ask what the percentage includes and whether the agent adds a margin to contractor invoices.
At True North Property Partners, we pass on routine contractor invoices without a maintenance mark-up. If you’d like to go through the running costs and management of your rental property in Blackpool & The Fylde Coast, call 01253 486 996 or email
Source: HM Treasury: Budget 2026
