10: Budget 2025: Government to hike property income tax rates by 2%
In November, the government announced that it would be raising property income tax rates from April 2027.
The basic, higher and additional rates would each increase by 2%, moving to 22%, 42% and 47%. According to the forecast, the proposed change is expected to raise an average of around £0.5bn a year from 2028 to 2029.
The OBR reported a modest negative effect from a portion of the higher taxes being passed through into rents and property tax receipts. However, it stated this would be more than offset by downward pressure on house prices, which would reduce other areas of tax revenue.
