Capital Gains Tax rates haven’t changed, but investors and landlords still face higher tax on their income. Expensive homes and wealth passed on to the next generation will also be taxed more. The main changes start in April 2027, which leaves time to plan.

Rental and savings income

From 6 April 2027, income tax on rental profits and savings interest rises to 24% for basic-rate, 44% for higher-rate and 49% for additional-rate taxpayers. That’s 4 points higher than today: last year’s Budget set a 2-point rise, and this one adds 2 more. Tax on dividends is unchanged. Buy-to-let landlords and anyone with large cash balances outside an ISA will feel it.

Landlords should check their numbers again: rents, mortgage costs and the higher tax may mean some properties no longer earn their keep. It may also make sense to move savings, or a property, into the name of a spouse or civil partner who pays a lower rate. Transfers between you are usually free of Capital Gains Tax, but moving a mortgaged property can trigger stamp duty and needs the lender’s consent, so take advice first. Also from April 2027, the tax-free trading allowance for small side incomes rises from £1,000 to £3,000.

Property

Headline stamp duty rates are unchanged. As announced in last year’s Budget, from April 2028, owners of homes in England worth £2 million or more will pay an annual surcharge on top of their council tax. It ranges from £2,500 for homes valued between £2 million and £2.5 million to £7,500 for homes worth £5 million or more.

If you own commercial property, the threshold for Small Business Rate Relief for retail, hospitality and leisure properties in England rises from £12,000 to £18,000 from 1 April 2027. The Treasury says that takes about 70,000 more businesses out of business rates, which may make it easier to keep high-street units let.

Capital gains

The main Capital Gains Tax rates stay at 18% and 24%, after the Chancellor decided against taxing gains at income tax rates. From 6 April 2027, the lifetime limit for Business Asset Disposal Relief is halved to £500,000, though its 18% rate is unchanged. A new Founders’ Relief will charge 10% on up to £10 million of lifetime gains for founders and early investors in fast-growing UK companies, from April 2027. The final rules are still being consulted on. From 6 April 2027, lending cryptoassets, or putting them into a liquidity pool, will no longer count as selling them for tax purposes.

ISAs and inheritance tax

The £20,000 ISA allowance can still be used for cash. A new Starter ISA for first-time investors is planned, though the details are still to come. With tax on savings and rental income going up, make full use of your ISA every year.

From April 2027, most unused pension funds and death benefits will count towards your estate for inheritance tax, under rules set out in law before this Budget. The nil-rate bands stay frozen until 2031. For many investors, the pension has been the main way to pass on wealth. That plan now needs a fresh look.

The bottom line

Sheltering your money from tax matters more than ever. Use your ISAs fully, review who owns each asset and update your estate plan before April 2027.