From April 2027, the tax landscape for residential property becomes markedly tougher due to higher income tax rates on rental income, and a new annual surcharge on high-value homes from April 2028. For buy-to-let (BTL) landlords and high-net-worth individuals (HNWs), the cumulative effect is clear: higher holding costs, increased compliance and renewed pressure on margins.

With the first phase of changes starting in April 2027, now is the time to reassess whether existing ownership structures remain efficient.

Higher taxes on rental income