by Asim Abbas
12 November 2026 
Tax changes from April 2027: what’s coming and how to prepare
Tax changes from April 2027: what’s coming and how to prepare
April 2027 brings one of the biggest sets of tax changes in recent years, affecting savers, landlords, sole traders, employers and anyone with a pension.
- Savings and property income rates rise to 22%, 42%, 47%
- MTD for Income Tax threshold falls to £30,000
- Most unused pensions enter the estate for IHT
- Mandatory payrolling of benefits begins
Several measures were announced at Budget 2025 and are now legislated or close to final. Acting before 6 April 2027 can lock in today’s rules for some decisions.
This guide brings all the main April 2027 changes together, with what each means for you and what to do now.
The main changes at a glance
| Change | Who it affects |
|---|---|
| Savings income taxed at 22%, 42% and 47% | Savers with interest above their allowances |
| Property income taxed at 22%, 42% and 47% | Individual landlords |
| MTD for Income Tax from £30,000 | Sole traders and landlords |
| Unused pensions in the estate for IHT | Anyone with pension savings |
| Mandatory payrolling of benefits | Employers and employees with benefits |
| Cash ISA limit for under-65s planned at £12,000 | Cash savers |
| Electric company car BIK rises to 5% | EV drivers |
Savings income
Interest above your Personal Savings Allowance will be taxed 2 percentage points higher. Basic rate savers pay 22% instead of 20%. Make full use of ISAs before the Cash ISA change, and consider holding savings in a lower-earning spouse’s name. See our savings tax guide.
Rental income tax calculator
Model 2027 rates.
Property income
Rental profits for individual landlords will be taxed at 22%, 42% and 47%, with finance cost relief due to be given at 22%. Combined with Section 24, higher rate landlords will pay more. Review ownership splits between spouses and whether a company structure makes sense for future purchases. See our Section 24 guide.
A higher rate landlord with £20,000 of rental profit and £8,000 of mortgage interest pays 40% on £20,000, £8,000, less a £1,600 credit, £6,400 in 2026/27. From 2027/28, at 42% with a 22% credit, the bill is £8,400 less £1,760, £6,640, an increase of £240 a year on the same profit.
Making Tax Digital
Sole traders and landlords with qualifying income over £30,000 on their 2025/26 return must start quarterly updates from 6 April 2027. Choose software and set up digital records now, so the first update on 7 August 2027 isn’t a rush. See our MTD £30,000 guide.
Fixed-fee accountancy support
Transparent monthly packages for sole traders, landlords and limited companies. Fixed fees agreed upfront, VAT included.
Get a fixed-fee quoteCall 0161 531 4179Pensions and Inheritance Tax
Most unused pension funds and death benefits will count towards your estate. Review beneficiary nominations, gifts from surplus income and your will. See our pensions and IHT guide.
Payrolling benefits
Employers must report and tax most benefits in kind through payroll in real time, rather than on P11Ds. Employees will see tax on benefits in each payslip instead of through tax code adjustments. Employers should check their payroll software is ready.
Other changes to note
- Late EMI notifications no longer automatically lose tax advantages
- Personal allowance and nil rate bands stay frozen until 2031
- The MTD threshold falls further to £20,000 from April 2028
Actions before 6 April 2027
- Use your 2026/27 ISA allowance in full
- Consider moving savings or property shares to a spouse
- Make pension contributions to manage income thresholds
- Set up MTD software if you’ll be over £30,000
- Review your estate plans with pensions included
See GOV.UK’s Budget 2025 documents, our year-end checklist and our tax planning service.
What should I do next?
Savings, property, MTD, pensions.
ISAs, transfers, pensions.
Software and records.
Frequently Asked Questions
What tax changes happen in April 2027?
Higher savings and property income rates, MTD from £30,000, pensions in the estate for IHT and mandatory payrolling of benefits.
What will the property income tax rates be?
22%, 42% and 47% from April 2027.
Who joins MTD in April 2027?
Sole traders and landlords with qualifying income over £30,000.
Are pensions subject to IHT from 2027?
Most unused pension funds will be included in the estate.
What should I do before April 2027?
Use ISAs, review ownership, plan pensions and set up MTD software.
Need help with this? Wingate Accountants offers fixed-fee online accountancy support across the UK. Call 0161 531 4179 or request a quote at wingateaccountants.co.uk.
About the Author
Asim Abbas
I’m Asim Abbas, founder of Wingate Accountants and a Chartered Certified Accountant. I help sole traders, landlords and directors stay on top of their tax with fixed fees and plain-English advice.
