Property income
From 6 April 2027, the rates of tax applying to property income in England, Wales and Northern Ireland will increase by a further two percentage points to 24%, 44% and 49% for basic, higher and additional rate taxpayers respectively. This represents an additional increase beyond that already announced at Budget 2025 and will further increase the tax burden on landlords.
Savings income
From 6 April 2027, the rates of tax applying to savings income will increase by a further two percentage points to 24%, 44% and 49% across the UK. The increase will affect interest and other taxable savings income, reducing after tax returns for many investors and savers.
Pensions Tax Allowance
A new Pensions Tax Allowance will apply from 6 April 2027 to 5 April 2030. Pensioners whose total income does not exceed the full new State Pension will receive an automatic tax reduction, providing targeted support to lower income retirees. The measure does not increase the Personal Allowance more generally.
Self Assessment payment reforms
From April 2029, taxpayers who currently make payments on account under Self Assessment will be required to make more regular in year payments towards their final tax liability. Although the payment frequency has not yet been confirmed, the reforms are intended to move the system closer to real-time tax collection.
Trading Allowance
The Trading Allowance will increase from £1,000 to £3,000 from 6 April 2027, allowing individuals to receive up to £3,000 of annual trading or miscellaneous income free from tax. The measure is intended to support entrepreneurship and reduce administrative burdens for those earning smaller amounts of additional income.
Employment expenses
From 6 April 2028, there will no longer be a requirement to submit an Income Tax Self Assessment tax return in order to claim employment expenses of over £2,500. This will allow more taxpayers to claim relief through PAYE.
