IMLA: Landlords could pay effective tax rates up to 124% of rental profit from 2027/28

Created Nov 11, 2026 • AI-generated summary

IMLA report 'The October 2026 Budget: Impact on the housing and mortgage markets' (published ~10 November 2026) analysing the Budget's further 2pp property income tax rise. In a worked example (£250,000 property, £150,000 mortgage, £4,365 annual profit before tax), IMLA calculates effective tax charges of about 74% for higher-rate and 86% for additional-rate taxpayers, and up to 124% of rental profit for a landlord on a £100,000 salary from 2027/28 due to personal allowance withdrawal, with rates of 24%/44%/49% applying from April 2027. IMLA says the widening gap with company ownership may accelerate incorporation (with SDLT/CGT costs) and notes a 157,000 fall in mortgaged buy-to-let properties between November 2022 and August 2026. Membership limited to coverage of this specific IMLLA report and its figures.