# Budget lifts tax on savings and rents by two percentage points from 2027

- URL: https://talkfuse.com/story/savers-and-landlords-hammered-with-income-tax-raid-in-budget-as-healey-ratchets-up-reeves-hike-by-another-2/
- Published: 2026-10-28T17:12:23+00:00
- Updated: 2026-10-28T17:28:53+00:00
- Original publisher: Daily Mail (publisher lean: Right)
- Original article: https://www.dailymail.com/money/saving/article-16245973/Savers-landlords-hammered-income-tax-raid-Budget-Healey-ratchets-Reeves-hike-2.html?ns_mchannel=rss&ns_campaign=1490&ito=1490
- Topics: World

## Key points

- Tax on savings interest and rents rises by two percentage points in April 2027.
- Basic-rate taxpayers will pay 24 per cent on affected income.
- The Government forecasts £1.045 billion in combined annual revenue by 2031-32.

## Summary

The Budget raises income tax on savings interest and rental income by a further two percentage points from April 2027, on top of a two-point rise announced last year. The change increases the tax burden on savers and landlords while leaving tax on employment earnings unchanged.

Basic-rate taxpayers will pay 24 per cent on affected income, higher-rate taxpayers 44 per cent and additional-rate taxpayers 49 per cent. The Government says 16 per cent of income taxpayers will be affected and half the revenue will come from the wealthiest 10 per cent of households; forecasts put the 2031-32 annual revenue at £590 million from savings and £455 million from rents. The Budget also keeps the £20,000 cash ISA allowance, while the OBR warns the rental tax change could reduce landlords’ returns and contribute to rent rises.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.