Both headlines describe the same change from different starting points. The Autumn 2026 Budget adds 2 percentage points to the previously announced 2027/28 rates, making the total rise 4 points above 2026/27. Basic-rate tax moves from 20% to 24%, not 26%.
The earlier announcement set 2027/28 savings and property rates at 22% / 42% / 47%. The Autumn 2026 Budget raises them to 24% / 44% / 49% from 6 April 2027. Compare the announcements and see how allowances and mortgage interest relief change the pounds you pay.
Last reviewed , including the changes announced in the Autumn 2026 Budget.
2026/27 runs from 6 April 2026 to 5 April 2027. The 2027/28 year begins on 6 April 2027. A proposed rate for 2027/28 is not an extra charge on 2026/27 income.
| Rate | 2026/27 baseline | Earlier 2027/28 announcement: +2 points | Autumn Budget 2027/28: +4 points total |
|---|---|---|---|
| Basic | 20% | 22% | 24% |
| Higher | 40% | 42% | 44% |
| Additional | 45% | 47% | 49% |
| Mortgage interest credit | 20% | 22% | 24% |
Savings rates apply UK-wide. Property and mortgage-credit scenarios here are for England, Wales and Northern Ireland as modelled in our preview. Scottish property income uses Scottish bands; the preview currently carries those forward and uses a 20% finance-cost credit.
On £1,000 of fully taxable basic-rate interest, 20% means £200 tax, 22% means £220 and 24% means £240. The 4-point rise adds £40 — a 20% increase in that £200 tax bill, not a 4% increase. Allowances, band crossings and mortgage credits can make your actual result different.
Each example uses the calculator’s tax engine with the same income in all three scenarios. Only tax attributable to rent or interest is shown; salary tax is excluded.
£30,000 salary and £5,000 annual interest outside an ISA. The £1,000 Personal Savings Allowance leaves £4,000 taxable.
4-point preview: £160 more than 2026/27, and £80 more than the 2-point scenario.
£60,000 salary and £10,000 annual interest outside an ISA. The £500 Personal Savings Allowance leaves £9,500 taxable.
4-point preview: £380 more than 2026/27, and £190 more than the 2-point scenario.
£35,000 salary and £15,000 rental profit after allowable expenses. All the rental profit falls in the basic-rate band.
4-point preview: £600 more than 2026/27, and £300 more than the 2-point scenario.
£30,000 salary, £12,000 rental profit before finance costs and £6,000 qualifying mortgage interest. The tax credit offsets part of the increase.
Mortgage credits: £1,200 at 20%, £1,320 at 22%, £1,440 at 24%.
4-point preview: £240 more than 2026/27, and £120 more than the 2-point scenario.
Full Personal Allowance; no pension contributions, Gift Aid, dividends, student loans or other income. Rental profit is after allowable non-finance expenses, with actual expenses claimed rather than the property allowance or Rent a Room relief. Finance costs are within relief limits in these examples. These are planning estimates, not personalised advice.
Use your annual interest or rental profit and include your other income: salary, pensions and side income can change your band and savings allowance.
Or start with the 2026/27 savings calculator or 2026/27 rental calculator.
The Personal Savings Allowance is £1,000 for basic-rate taxpayers, £500 for higher-rate taxpayers and zero for additional-rate taxpayers. Lower earners may also have up to £5,000 at the 0% starting rate and unused Personal Allowance. A saver whose interest remains fully covered pays £0 in all three scenarios.
ISA interest is tax-free. The calculator preview assumes an overall £20,000 annual ISA subscription allowance per eligible adult; check the official ISA rules for any separate cash limit and eligibility conditions. The allowance is shared across ISA types, not £20,000 for each account. Moving eligible savings into an ISA can shelter future interest, but compare rates, access and transfer rules too.
ISAs cannot shelter rental property. Check allowable expenses and qualifying finance costs: a higher credit can offset some of a higher property rate, as the mortgage example shows. Pensions and genuine ownership arrangements may also affect your position, but transferring property can trigger Capital Gains Tax, Stamp Duty and mortgage costs. Get advice before restructuring.
No. These scenarios compare a total 2-point or 4-point increase against the same 20% / 40% / 45% baseline. They are not a combined 6-point rise.
No. Income tax applies to taxable interest, not the money deposited in your savings account. ISA interest is exempt.
No. It applies to taxable property profit after allowable deductions and allowances. The examples also account for the separate mortgage interest tax credit.
No. It is an explanatory comparison only. Select 2026/27 for the baseline or 2027/28 for the current preview assumptions.
HMRC’s announcements establish the rates and timing; the worked examples use our calculator engine. A Budget announcement is not the same as final legislation.