England: taxes on investment income of individuals — changes from Budget 2025

In the UK, as part of Budget 2025, tax increases on investment income for individuals have been announced. The changes will come into effect in stages in 2026–2027 and are aimed at increasing fiscal revenues.

Dividends — from 6 April 2026

An increase of +2 p.p. has been announced:

• ordinary rate: 8.75% → 10.75%
• upper rate: 33.75% → 35.75%
• additional rate: unchanged — 39.35%

Savings income (interest, savings) — from 6 April 2027

Also an increase of +2 p.p.:

• basic rate: 20% → 22%
• higher rate: 40% → 42%
• additional rate: 45% → 47%

Property income — from 6 April 2027

Separate tax rates are introduced for income from real estate (including rent):

• 22% / 42% / 47% — depending on income levels

Practical significance

• The tax burden on investment and passive income of individuals in the UK is increasing.
• This will have a particular impact on dividend portfolios, interest income and rental income.
• It is advisable to review ownership structures and tax planning before the effective dates.