UK Tax Changes 2027/28 — Property, Savings, Pensions and ISAs

The UK has not yet published a 2027 Budget. The next announced Budget is scheduled for 28 October 2026. This guide instead explains the important 2027/28 measures that have already been announced or legislated, so readers can separate confirmed changes from Budget speculation.

What is confirmed and what is not

The measures below come from official policy documents and Budget 2025 legislation or implementation material. They should still be checked against the final HMRC guidance and the October 2026 Budget, because later fiscal events can amend commencement dates or details.

Property income tax rates

From April 2027, property income is scheduled to have separate rates: 22% basic, 42% higher and 47% additional. The measure applies to property income rather than employment income, and the official explanation says the way people report and pay remains the same; the tax rates change.

Finance cost relief for unincorporated landlords is provided at the separate property basic rate of 22%. This does not turn mortgage interest into a normal deduction for a residential landlord, and it does not mean every landlord will pay 22% overall. Property allowance, allowable expenses, finance costs, other income and the taxpayer's circumstances still matter.

Scotland has different income-tax powers. A UK-wide page should not silently apply the England, Wales and Northern Ireland property rates to every Scottish taxpayer.

Savings income and the starting rate

The announced savings-income rates from April 2027 are:

The Personal Savings Allowance and the Starting Rate for Savings remain separate concepts. The government has also stated that the £5,000 Starting Rate for Savings limit is retained through 5 April 2031. Interest inside an ISA remains tax-free, subject to ISA rules and limits.

The extra rate does not apply to the money deposited; it applies to taxable interest after the relevant allowances and ordering rules. A calculator must therefore know the taxpayer's other income and not multiply the savings balance by 22%, 42% or 47%.

Cash ISA limit from 6 April 2027

The Budget 2025 document states that from 6 April 2027 the annual Cash ISA limit will be £12,000 within the overall £20,000 ISA subscription limit. The annual Lifetime ISA limit remains £4,000 and the Junior ISA limit remains £9,000. Savers aged over 65 retain the ability to save up to £20,000 in a Cash ISA each year.

This is a subscription limit, not a limit on the value of an existing ISA. The overall ISA rules, transfers and provider processes still apply. Do not describe the £12,000 figure as a cap on withdrawals or on the balance already held.

Pension funds and Inheritance Tax

For deaths on or after 6 April 2027, most unused pension funds and pension death benefits will be brought into the value of the estate for IHT purposes. The reform is not the same as taxing every pension withdrawal as Income Tax, and it does not mean that every estate will owe IHT.

The official technical note says personal representatives will generally report and pay any IHT due on the notional pension property. Secondary regulations and detailed guidance cover information sharing, notices and evidence. The technical note itself says it is not draft guidance, so estate planning should be checked again when the April 2027 HMRC materials are published.

Student loans and fuel duty

The Plan 2 repayment threshold is scheduled to remain at its 2026/27 level for three years from April 2027. This affects the income point at which repayments begin; it does not change the loan balance into a new tax or increase the repayment percentage by itself. Other student-loan plans have their own thresholds and rates.

Fuel duty changes are staged. The temporary 5p cut is reversed by 1p in September 2026, 2p in December 2026 and 2p in March 2027, with RPI uprating from April 2027. The exact cost to a household depends on fuel type, mileage and vehicle efficiency.

Benefits-in-kind reporting from April 2027

Mandatory payrolling through payroll software and RTI begins for company cars, car fuel, vans, van fuel and employer-provided medical benefits from April 2027. This changes the reporting route and payroll timing; it does not by itself set a new BIK percentage or make every benefit taxable in the same way.

Employers should check payroll software readiness and employee records. Employees should not treat a change in payslip timing as proof that the underlying BIK calculation is wrong.

Practical planning checklist

How to Keep a 2027/28 Planning File Current

For each measure, record four facts: the policy source, whether it is enacted or announced, the commencement date and the group of taxpayers it affects. Store the official publication date and review date beside the assumption. A Budget speech, a technical note, a Finance Bill and final HMRC guidance can describe different stages of the same measure; do not merge them into one “new rate” without checking the legal effect.

Separate the planning inputs by income type. A property-income rate is not an employment rate, a savings rate is not a percentage of the bank balance, and pension IHT is not a new Income Tax charge on every withdrawal. Keep Scottish income-tax treatment separate from England, Wales and Northern Ireland, and identify whether a rule applies on 6 April 2027, on death, at payroll submission or only after a provider or HMRC process is available.

Before changing a pension contribution, ISA subscription, landlord calculation or payroll setting, recheck the official source after the Autumn Budget 2026 and the relevant HMRC implementation guidance. Save the old scenario and the new one, including the reason for the change. This preserves an auditable distinction between confirmed policy, a calculator assumption and a future proposal.

Frequently Asked Questions

Evidence and decision checks

A reliable uk tax changes 2027 28 review starts by fixing the tax year and the date on which the relevant event happened. Record the person's or business's status, the income or transaction category, the amount before tax, tax already withheld, and any election or claim being relied on. Do not combine a headline figure with a final liability: the result can change when another income source, a payment date, an ownership interest or a qualifying condition is added.

Keep the source documents behind every important input. Depending on the subject, that may include payslips, invoices, bank statements, contracts, provider statements, travel records, HMRC notices, payroll submissions, valuations or correspondence. Where an amount is apportioned, write down the method and retain the underlying total. If a correction is made, preserve the original figure and explain the reason, date and evidence for the replacement.

Before relying on the result, check the current official guidance for the same tax year and jurisdiction. Distinguish enacted law from a consultation, draft measure, announcement or future proposal, and record the effective date. Reconcile the final estimate to the relevant return, payroll record or HMRC account. A calculator or explanatory guide can support a decision, but it cannot replace the eligibility test or the official filing and payment process.

Evidence and decision checks

A reliable uk tax changes 2027 28 review starts by fixing the tax year and the date on which the relevant event happened. Record the person's or business's status, the income or transaction category, the amount before tax, tax already withheld, and any election or claim being relied on. Do not combine a headline figure with a final liability: the result can change when another income source, a payment date, an ownership interest or a qualifying condition is added.

Keep the source documents behind every important input. Depending on the subject, that may include payslips, invoices, bank statements, contracts, provider statements, travel records, HMRC notices, payroll submissions, valuations or correspondence. Where an amount is apportioned, write down the method and retain the underlying total. If a correction is made, preserve the original figure and explain the reason, date and evidence for the replacement.

Before relying on the result, check the current official guidance for the same tax year and jurisdiction. Distinguish enacted law from a consultation, draft measure, announcement or future proposal, and record the effective date. Reconcile the final estimate to the relevant return, payroll record or HMRC account. A calculator or explanatory guide can support a decision, but it cannot replace the eligibility test or the official filing and payment process.

Evidence and decision checks

A reliable uk tax changes 2027 28 review starts by fixing the tax year and the date on which the relevant event happened. Record the person's or business's status, the income or transaction category, the amount before tax, tax already withheld, and any election or claim being relied on. Do not combine a headline figure with a final liability: the result can change when another income source, a payment date, an ownership interest or a qualifying condition is added.

Keep the source documents behind every important input. Depending on the subject, that may include payslips, invoices, bank statements, contracts, provider statements, travel records, HMRC notices, payroll submissions, valuations or correspondence. Where an amount is apportioned, write down the method and retain the underlying total. If a correction is made, preserve the original figure and explain the reason, date and evidence for the replacement.

Before relying on the result, check the current official guidance for the same tax year and jurisdiction. Distinguish enacted law from a consultation, draft measure, announcement or future proposal, and record the effective date. Reconcile the final estimate to the relevant return, payroll record or HMRC account. A calculator or explanatory guide can support a decision, but it cannot replace the eligibility test or the official filing and payment process.

Use the Salary Calculator→ for employment-income scenarios and check the relevant HMRC guidance before relying on any 2027/28 estimate.

Official sources

• HMRC: Tax Update 2026 — simplification, modernisation and fairness summary
• HMRC: Changes to tax rates for property, savings and dividend income
• HM Treasury: Budget 2025
• HMRC: Inheritance Tax on pensions
• HMRC: Changes to reporting of benefits in kind from April 2027
• UK Parliament: The Budget and Parliament