UK property tax rates 2026/27
Every current UK property tax figure a landlord needs, in one place. Figures are for the 2026/27 tax year and are maintained against HMRC, Revenue Scotland, the Welsh Revenue Authority and legislation.gov.uk.
Stamp Duty Land Tax (England & Northern Ireland)
Each rate applies only to the part of the price within its band. A buy-to-let or second home adds a 5% surcharge on the whole price.
| Band | Standard | + 5% additional |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,001 to £250,000 | 2% | 7% |
| £250,001 to £925,000 | 5% | 10% |
| £925,001 to £1,500,000 | 10% | 15% |
| Above £1,500,000 | 12% | 17% |
Non-UK-resident buyers add a further 2%. First-time buyers pay 0% to £300,000 and 5% on £300,001 to £500,000, with no relief once the price exceeds £500,000.
LBTT (Scotland)
| Band | Rate |
|---|---|
| Up to £145,000 | 0% |
| £145,001 to £250,000 | 2% |
| £250,001 to £325,000 | 5% |
| £325,001 to £750,000 | 10% |
| Above £750,000 | 12% |
The Additional Dwelling Supplement is 8% of the whole price for an additional dwelling worth £40,000 or more. First-time-buyer relief raises the nil band to £175,000.
LTT (Wales)
Main residential rates. Additional properties use a separate higher-rates table (5% to 17%).
| Band | Main rate |
|---|---|
| Up to £225,000 | 0% |
| £225,001 to £400,000 | 6% |
| £400,001 to £750,000 | 7.5% |
| £750,001 to £1,500,000 | 10% |
| Above £1,500,000 | 12% |
Wales has no first-time-buyer relief and no non-resident surcharge.
Capital Gains Tax on residential property
| Item | 2026/27 |
|---|---|
| Rate within unused basic-rate band | 18% |
| Rate above the basic-rate band | 24% |
| Annual exempt amount | £3,000 |
| Reporting and payment deadline | 60 days from completion |
Rental income tax and Section 24
| Item | 2026/27 |
|---|---|
| Income tax rates | 20% / 40% / 45% |
| Personal allowance | £12,570 |
| Section 24 mortgage-interest credit | 20% (22% from 2027/28) |
| Property income rates from 2027/28 (England, Wales, NI) | 22% / 42% / 47% |
Individual landlords cannot deduct mortgage interest. The full profit is taxed and a basic-rate credit is given on the interest. Companies deduct interest in full.
Corporation tax and dividends (property company)
| Item | 2026/27 |
|---|---|
| Corporation tax up to £50,000 profit | 19% |
| Corporation tax £250,000 profit or more | 25% |
| Marginal relief band (effective) | about 26.5% |
| Dividend allowance | £500 |
| Dividend tax rates | 8.75% / 33.75% / 39.35% |
Allowances, reliefs and MTD
| Item | 2026/27 |
|---|---|
| Property allowance | £1,000 |
| Rent-a-room relief | £7,500 (£3,750 if shared) |
| Making Tax Digital threshold (from April 2026) | £50,000 gross income |
| MTD threshold from April 2027 / April 2028 | £30,000 / £20,000 |
These figures are a quick reference and not a substitute for advice on your own position. We can confirm exactly how each applies to you.
Not sure which rates apply to you?
Rates are the easy part. Knowing which reliefs you qualify for, and how the pieces interact, is where the savings are. Tell us about your situation for a no-obligation review.
Frequently asked questions
What are the stamp duty rates for a buy-to-let in 2026/27?
In England and Northern Ireland a buy-to-let or second home pays the standard SDLT bands (0% to £125,000, 2% to £250,000, 5% to £925,000, 10% to £1.5m, 12% above) plus a 5% additional-dwelling surcharge on the whole price. Scotland adds an 8% Additional Dwelling Supplement to LBTT, and Wales applies a separate higher-rates LTT table.
What is the capital gains tax rate on property?
For 2026/27, residential property gains are taxed at 18% within your unused basic-rate band and 24% above it, after the £3,000 annual exempt amount. The tax must be reported and paid within 60 days of completion.
What is the corporation tax rate for a property company?
19% on profits up to £50,000, 25% on profits of £250,000 or more, with marginal relief tapering between the two (an effective rate of about 26.5% on the middle slice).
Does Section 24 still apply in 2026/27?
Yes. Individual landlords cannot deduct mortgage interest; they receive a basic-rate tax credit of 20% on it for 2026/27, rising to 22% from 2027/28. Companies are not affected and deduct interest in full.