Landlords will be hit with a tax hike on their rental income in a bid to raise an estimated £500m a year for the Treasury.

Chancellor Rachel Reeves used her Budget to reveal a two per cent increase to the basic, higher and additional rates of property income tax from April 2027.

This will see the tax rates rise to 22, 42 and 47 per cent respectively. New Feature

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Reeves told the Commons: “Currently, a landlord with an income of £25,000 will pay nearly £1,200 less in tax than their tenant with the same salary because no National Insurance is charged on property, dividend or savings income.

“It’s not fair that the tax system treats different types of income so differently and so I will increase the basic and higher rate of tax on prope

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