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As the tax year slows to close on April 5, it's time to take a look at any changes that may impact how much tax property professionals may have to pay in 2026-27 and beyond.
The tax-free personal allowance stays at £12,570 and will remain in place until at least April 2031. The freeze means the allowance is not keeping up with inflation. The result is that as incomes rise, taxpayers keep less of their earnings, and more is netted in the higher and additional rate bands, paying more tax.
This is important to property investors who run their businesses through a limited company, who pay themselves dividends rather than payroll.
The tax-free dividend allowance sticks at £500, but the tax rates applying to dividends rise by 2 percent for basic and higher rate taxpayers.
Instead of the basic rate of 8.75 percent, it rises to 10.75 percent, and the higher rate rises from 33.75 percent to 35.75 percent. The additional rate is unchanged at 39.35 percent.
The annual exempt amount remains at £3,000, while CGT rates are unchanged at 18 per cent for basic-rate taxpayers and 28 per cent for higher-rate taxpayers.
Claims for Business Asset Disposal Relief or Investors Relief see higher CGT rates from April 6 - an increase of 4 percent from 14 percent to 18 percent for disposals taking place on or after April 6. 2026.
Making Tax Digital starts for landlords and sole traders - which includes self-employed property developers - with qualifying incomes of more than £50,000. MTD is compulsory, not an option.
Chancellor Rachel Reeves has already flagged some tax changes for the 2027-28 tax year.
From April 6, 2027, new tax rates apply to profits from renting property. The rates are expected to be 2 per cent above the main rates of income tax, so a basic rate of 22 percent, a higher rate of 42 percent and 47 percent for the additional rate band.
Making Tax Digital will cover property people with an income of more than £30,000 on their 2025/26 tax returns.
And don't forget, if one partner in a civil partnership or marriage does not fully use their income tax personal allowance, 10 percent of the remaining balance can be transferred to the other partner to reduce the tax they pay by up to £252 under marriage tax transfer rules.