Salary plus rental profit
£35,000 salary and £15,000 rental profit, with no mortgage interest.
- 2026/27 tax
- £3,000
- 2027/28 preview
- £3,300
- Annual increase
- £300
6 April 2027 – 5 April 2028
UK tax changes 2027/28
Savings interest and rental profit move to 22%, 42% and 47% from April 2027. Your salary, pension and side income still determine which band you reach — so the impact depends on the whole picture.
Reviewed against official guidance on . UK personal tax; Scottish property rules differ.
2026/27 vs 2027/28: what changes?
The new rates apply to taxable income after allowances, not to every pound you receive. Property rates below are for England, Wales and Northern Ireland; savings and dividend rates apply across the UK.
| Income or allowance | 2026/27 | 2027/28 |
|---|---|---|
| Savings interest rates (UK-wide) | 20% / 40% / 45% | 22% / 42% / 47% |
| Property income rates (England, Wales, Northern Ireland) | 20% / 40% / 45% | 22% / 42% / 47% |
| Residential finance-cost relief | 20% | 22% property basic rate |
| Personal Allowance | £12,570 | £12,570 |
| Personal Savings Allowance | £1,000 / £500 / £0 | Unchanged |
| Starting rate for savings | Up to £5,000 at 0% | Unchanged |
| Dividend rates (UK-wide) | 10.75% / 35.75% / 39.35% | No further rise announced |
| Dividend allowance | £500 | £500 |
HMRC says residential finance-cost relief moves to the property basic rate of 22%, and the 2027/28 preview applies it. Read the official technical note.
Salary and pension tax bands
For England and Northern Ireland, the preview retains the 20%, 40% and 45% main rates; Welsh rates remain subject to Welsh decisions. The Personal Allowance remains £12,570, reduced by £1 for every £2 of adjusted net income above £100,000. With a full allowance, the higher-rate threshold remains £50,270. Scottish earned-income bands are not finalised here for 2027/28.
Allowances still shelter savings
Basic-rate taxpayers retain a £1,000 Personal Savings Allowance; higher-rate taxpayers get £500 and additional-rate taxpayers get none. The separate starting rate for savings is up to £5,000 at 0%, reduced by other non-savings income above the Personal Allowance. ISA interest remains tax-free.
How much more tax could you pay?
These examples use our tax engine to isolate income tax on the extra rent or interest, excluding tax on the salary.
Salary plus savings interest
£45,000 salary and £5,000 savings interest outside an ISA.
- 2026/27 tax
- £800
- 2027/28 preview
- £880
- Annual increase
- £80
Higher-rate saver
£60,000 salary and £10,000 savings interest outside an ISA.
- 2026/27 tax
- £3,800
- 2027/28 preview
- £3,990
- Annual increase
- £190
England, Wales and Northern Ireland; a full Personal Allowance, no pension contributions, Gift Aid, dividends or other reliefs. The rental example has no finance costs. Crossing a band or losing an allowance can change the result: do not assume your whole bill simply rises by 2%.
A salary, a side gig, a rental — one tax calculation
Looking at each source in isolation can miss the real bill. Self-employment profit alongside a PAYE job uses the same personal tax bands. Rental profit then sits above earned income, followed by savings interest and dividends. A side gig can move interest into a higher band or reduce the savings allowance, even though the gig itself is not subject to the new savings rates.
For a household, each person has their own allowances and tax bill — there is no shared household Personal Allowance. Assign actual income to its owner in seamless.tax, then view both individual results and household take-home. Do not reassign income just to get a lower estimate: ownership and legal entitlement determine who pays the tax.
Other April 2027 changes to consider
Cash ISA limit for under-65s
From 6 April 2027, the annual cash ISA subscription limit falls to £12,000 for people under 65, within the overall £20,000 ISA limit. People aged 65 or over retain a £20,000 cash ISA limit. This concerns new subscriptions, not a £12,000 cap on your existing ISA balance. Our income tax preview does not model ISA subscriptions. HMRC ISA guidance.
Unused pensions and Inheritance Tax
Most unused pension funds and death benefits enter the estate for Inheritance Tax from 6 April 2027, with exclusions and exemptions still relevant. That does not mean every inherited pension automatically attracts 40% tax. This is separate from income tax on pension withdrawals and is not calculated in our pension income tool. HMRC pension inheritance guidance.
Making Tax Digital reaches more side businesses and landlords
From 6 April 2027, Making Tax Digital for Income Tax applies where qualifying gross self-employment and property income was over £30,000 in 2025/26, subject to exemptions. It is a reporting requirement based on qualifying income, not a new tax band or a test of salary plus profit. seamless.tax is not MTD filing software. Check HMRC eligibility.
2027/28 questions answered
When does the 2027/28 tax year start?
The UK 2027/28 tax year starts on 6 April 2027 and ends on 5 April 2028. The new property and savings income rates apply from 6 April 2027.
What are the savings tax rates for 2027/28?
The announced UK-wide rates are 22%, 42% and 47%. The Personal Savings Allowance and starting rate for savings remain unchanged, so only interest not sheltered by allowances is taxed at these rates.
Are rental income tax rates increasing in Scotland too?
The announced 22%, 42% and 47% property rates apply to England, Wales and Northern Ireland. Scottish property income is subject to devolved rules. Our preview carries forward existing Scottish bands until the 2027/28 figures are confirmed.
Are dividends going up again in April 2027?
The basic and higher dividend rates increased in April 2026 to 10.75% and 35.75%; the additional rate stayed at 39.35%. No further increase is included in this 2027/28 preview. The dividend allowance remains £500.
Can I calculate my 2027/28 tax bill now?
Yes, as a preview of known changes rather than a final forecast. Combine your employment, self-employment, pension, rental, savings and dividend income in the dashboard. Scottish bands and student loan thresholds are carried forward pending confirmation.
Official sources & further reading
- HMRC: property, savings and dividend income — rates, allowances and ordering rules
- Finance Act 2026: property rates for 2027/28
- UK tax rates & allowances 2026/27
- Rental income tax guide 2026/27
Estimates for planning, not personalised tax advice. Revisit the preview when further 2027/28 figures are announced.