Savers and Landlords Hammered with Income Tax Hike in Budget
The measure will affect 16% of income tax payers and is forecast to raise £1.0 billion for the Treasury by 2031-32, officials said.
- Chancellor John Healey announced a 4 per cent tax increase on savings and rental income from April 2027, marking the second successive Budget tax raid on these assets.
- Healey's new 2 per cent hike builds upon a 2 per cent increase imposed by former Chancellor Rachel Reeves in last year's Budget, described as a 'fair and proportionate approach'.
- From April 2027, Basic rate taxpayers will pay 24 per cent on interest and rents, up from 20 per cent, while Higher rate taxpayers face 44 per cent and additional-rate taxpayers 49 per cent.
- Conservative Party leader Kemi Badenoch cautioned that these changes will cause tenants to suffer, while Healey reversed a cut to the cash Isa allowance, maintaining it at £20,000.
- The Office for Budget Responsibility forecasts the policy will 'represent a material reduction in returns to private Landlords' and 'risk leading to a steady rise in rents', while Treasury projections suggest the hike on Savers will raise £590 million.
12 Articles
12 Articles
Savings tax raid to hit 3.8 million Britons as Budget shake-up could push bills up by £603
Nearly four million savers face higher tax bills after Chancellor John Healey raised the tax charged on savings interest to as much as 49 per cent.The increase will apply from 6 April 2027, although most people will remain protected by tax-free allowances and ISAsFormer chancellor Rachel Reeves had already announced that savings tax rates would rise by two percentage points from April 2027. Mr Healey has now added another two points, taking the …
IN FULL: Every Tax Hike in the Budget
Every tax hike in the Budget. Figures in brackets are the total amount over the spending envelope: HMRC compliance and debt package – £3.2 billion (£7.9 billion): the biggest part is “timely payment” for self-assessment (£1.8 billion). It also includes 670 more compliance officers, direct recovery from bank accounts and e-invoicing. Savings income tax up…
Tax raid on landlords 'final nail in the coffin' for rental sector
John Healey’s decision to push up tax on rental income is set to push up rents and deter new landlords from entering the sector. The Chancellor said in the Budget that tax on property income will rise by a further two per cent, following the two per cent hike imposed by his predecessor, Rachel Reeves, [...]
Budget pushes tax on property and savings income to 49% - London Business News
Landlords and savers face a further tax rise from April, after the Budget added two percentage points to the rates announced last year. The new rates will be 24% for… The post Budget pushes tax on property and savings income to 49% appeared first on London Business News
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