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Every change to income tax, stamp duty, capital gains tax, company tax and record keeping that affects landlords, from the 2015 Summer Budget to Budget 2026. Each entry has the date it took effect, when it was announced and an official source.
Last updated 30 October 2026
Tax changes since 2015
27
Tax on rental profit, higher rate
40% to44%
From 6 April 2027
Stamp duty surcharge on a buy-to-let
0 to5 points
England and Northern Ireland
Capital gains tax-free allowance
£11,100 to£3,000
2015-16 against today
Each dot is one change, placed on the date it took effect. Select a dot to jump to it.
Scroll sideways to see every year.
The biggest change
A higher-rate landlord with £10,000 of mortgage interest used to save £4,000 in tax by deducting it. From 2017 the deduction was phased out a quarter at a time and replaced with a 20% tax reduction, worth £2,000.
From April 2027 the reduction rises to 24%, the new property basic rate, but the same landlord pays 44% on the rent.
Worked example
A higher-rate landlord makes £20,000 a year from rent after running costs and pays £15,000 in mortgage interest, about what an interest-only mortgage of £281,000 costs at today's average buy-to-let rate of 5.34%. The real profit is £5,000. Here is the tax on it.
2015-16
£40
tax for every £100 of real profit
Interest deducted first, then 40% on the £5,000 left.
2026-27
£100
tax for every £100 of real profit
40% on all £20,000 of rent profit, less 20% of the interest.
2027-28 (from April 2027)
£104
tax for every £100 of real profit
44% on all £20,000 of rent profit, less 24% of the interest.
| Tax year | Rate on rent profit | Tax before relief | Interest relief | Tax to pay |
|---|---|---|---|---|
| 2015-16 | 40% | £2,000 on £5,000 | Interest deducted first | £2,000 |
| 2026-27 | 40% | £8,000 on £20,000 | less £3,000 (20%) | £5,000 |
| 2027-28 | 44% | £8,800 on £20,000 | less £3,600 (24%) | £5,200 |
Tax to pay, and the tax for every £100 of real profit after mortgage interest.
| Landlord | Real profit | 2015-16 | 2026-27 | 2027-28 |
|---|---|---|---|---|
| Higher-rate, no mortgage | £20,000 | £8,000 £40 per £100 | £8,000 £40 per £100 | £8,800 £44 per £100 |
| Higher-rate, £10,000 interest | £10,000 | £4,000 £40 per £100 | £6,000 £60 per £100 | £6,400 £64 per £100 |
| Higher-rate, £15,000 interest | £5,000 | £2,000 £40 per £100 | £5,000 £100 per £100 | £5,200 £104 per £100 |
| Additional-rate, £15,000 interest | £5,000 | £2,250 £45 per £100 | £6,000 £120 per £100 | £6,200 £124 per £100 |
From April 2027 a higher-rate landlord pays more tax than they make whenever mortgage interest is more than 73.7% of their rental profit before interest, and an additional-rate landlord when it is more than 67.1%. A basic-rate landlord pays 24% of their real profit, because their relief matches their rate. The examples assume all the rental profit falls in one band, as it does when salary or pension already uses the lower bands, and leave out allowances and other reliefs. They apply to landlords who own in their own name in England, Wales or Northern Ireland.
For a higher-rate taxpayer who owns rental property in their own name in England.
The 24% relief follows from the law: mortgage interest relief is given at the property basic rate (HMRC technical note), which Budget 2026 set at 24% for 2027-28. What the new rates mean for rents in each area is on the Buy-to-Let Yield Map.
Listed by the date each change took effect. Changes still to come are marked.
Buying an additional residential property, including a buy-to-let, attracts Stamp Duty Land Tax at 3 percentage points above the standard rates in every band.
The flat 10% wear and tear allowance for furnished lets ended. Landlords instead claim the actual cost of replacing furniture, appliances and furnishings like for like, but not the first purchase.
The main capital gains tax rates fell from 18% and 28% to 10% and 20%. Gains on residential property stayed at 18% and 28%, so selling a rental home was taxed more heavily than other assets.
Individual landlords began losing the right to deduct mortgage interest and other finance costs from rental profits. In 2017-18, 75% could still be deducted, with the rest given as a 20% tax reduction. The deductible share fell to 50% in 2018-19 and 25% in 2019-20.
A £1,000 tax-free allowance for property income was introduced, and the cash basis became the default way most small property businesses work out their profits.
The tax-free dividend allowance fell from £5,000 to £2,000, raising tax for landlords who own property through a company and take profits as dividends.
No finance costs can be deducted from individual landlords' rental profits. All relief is a tax reduction at the basic rate of 20%, so higher-rate taxpayers lose half the relief they had in 2016.
Lettings relief, worth up to £40,000 on the sale of a former home that had been let, now applies only where the owner shared the home with the tenant. The final period that counts as lived in for private residence relief was cut from 18 months to 9.
UK residents selling a residential property with capital gains tax to pay must report and pay within 30 days of completion, instead of after the end of the tax year.
Non-UK residents buying residential property pay a further 2 percentage points of Stamp Duty Land Tax, on top of the higher rates for additional homes.
The deadline to report and pay capital gains tax on a UK residential property sale doubled to 60 days after completion.
The main rate of corporation tax rose from 19% to 25% for company profits over £250,000, with a 19% small profits rate up to £50,000 and marginal relief in between. Landlord companies pay corporation tax on their rental profits.
The capital gains tax annual exempt amount fell from £12,300 to £6,000. The dividend allowance fell from £2,000 to £1,000 at the same time.
The capital gains tax annual exempt amount fell from £6,000 to £3,000. The dividend allowance fell to £500.
The higher rate of capital gains tax on residential property gains fell from 28% to 24%. The basic rate stayed at 18%.
The stamp duty relief that lowered the tax when several homes were bought in one transaction was abolished, raising the cost of buying portfolios and blocks.
The main capital gains tax rates rose from 10% and 20% to 18% and 24%, the same as the rates on residential property. Property gains were no longer taxed more heavily than other assets.
The higher rates of Stamp Duty Land Tax for additional residential property rose from 3 to 5 percentage points above the standard rates.
Income from furnished holiday lets is now taxed like other property income, including the basic-rate restriction on mortgage interest relief.
Landlords and sole traders with combined property and self-employment income over £50,000 must keep digital records and send quarterly updates to HMRC through compatible software.
The ordinary and upper rates of dividend tax rose by 2 percentage points, to 10.75% and 35.75%, raising tax for landlords who take company profits as dividends.
Stamp Duty Land Tax no longer applies to the rent element of assured tenancies, the same date most of the Renters' Rights Act came into force.
Budget 2025 created separate income tax rates for property income, 2 points above the standard rates, with mortgage interest relief given at the new property basic rate. Budget 2026 then raised them again before they started.
Budget 2026 raised the property rates by a further 2 points, so rental income will be taxed 4 points above today's rates. HMRC estimates about 2.4 million landlords will pay more by 2031-32, raising about £455 million a year.
The Making Tax Digital requirement extends to landlords and sole traders with qualifying income over £30,000.
An additional annual charge on residential properties worth £2 million or more, paid by owners rather than occupiers, so it reaches landlords of high-value homes.
The Making Tax Digital requirement extends to landlords and sole traders with qualifying income over £20,000.
Stamp duty is devolved. Scotland and Wales set their own taxes on buying an additional home, and both can set their own income tax rates on property income.
Scotland
Introduced at 3% on 1 April 2016, then 4% from 25 January 2019, 6% from 16 December 2022 and 8% from 5 December 2024.
Wales
A separate higher rates table since 1 April 2018. Its bottom band was 3%, rising to 4% from 22 December 2020 and 5% from 11 December 2024.
27 changes are listed here, 21 of which raise tax or paperwork for a typical individual landlord. The biggest are the restriction of mortgage interest relief to a 20% tax reduction (phased in from April 2017 to April 2020), the stamp duty surcharge on additional homes (3 points from April 2016, 5 points from October 2024), cuts to the capital gains tax allowance from £12,300 to £3,000, and separate property income tax rates of 24%, 44% and 49% from April 2027.
Section 24 of the Finance (No. 2) Act 2015 stopped individual landlords deducting mortgage interest and other finance costs from their rental profits. Since April 2020 the relief has been a tax reduction at the basic rate of 20% instead. Higher-rate taxpayers lost half their relief. From April 2027 the reduction is given at the property basic rate, 24%. Landlords who own through a company are not affected.
On 6 April 2027, for the 2027-28 tax year. Rental income will be taxed at 24% for basic-rate taxpayers, 44% at the higher rate and 49% at the additional rate in England, Wales and Northern Ireland. Budget 2025 set the rates at 22%, 42% and 47%, and Budget 2026 raised them by 2 more points before they started.
In England and Northern Ireland, buying an additional home, including a buy-to-let, costs 5 percentage points more Stamp Duty Land Tax than the standard rates in every band, since 31 October 2024. It was 3 points from April 2016. Non-UK residents pay a further 2 points. Scotland charges an 8% Additional Dwelling Supplement and Wales has its own higher rates table.
No. The property income rates are income tax rates for individuals. Companies pay corporation tax on rental profits, at 19% to 25% depending on profits, and can still deduct mortgage interest in full. Company owners are affected by dividend tax instead, which rose by 2 points from April 2026.
This is a summary of tax rules, not tax advice. Rules have conditions and exceptions not shown here.
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