New rates of income tax on investment income from 6 April 2026 

Commenting on changes to income tax measures announced today, Rachel McEleney, tax director at Deloitte, said:  

“The Chancellor announced today that most rates of income tax on investment income will increase by 2%. Changes in dividend rates apply from 6 April 2026. Other changes will apply from 6 April 2027.

“These changes are expected to raise over £8 billion by 2030/31. These rate increases do not breach the letter of the government’s manifesto commitments, as they have created new rates of tax rather than increased existing ones. This creates complexity in the tax system, however, with ten different rates of tax potentially applying to individuals in England and Northern Ireland, and potentially more in Scotland and Wales.

“Dividends are currently taxed at 8.75%, 33.75% and 39.35% in the basic, higher and additional rate bands. The rates for basic and higher rate taxpayers will increase to 10.75% and 35.75%, respectively. The rate for additional rate taxpayers is unchanged. The new rates will apply to all parts of the UK. 

“Savings income is currently taxed at 20%, 40% and 45% in the basic, higher and additional rate bands, in a similar way to salaries. New ‘savings rates’ will be introduced, which will be 22%, 42% and 45% in the basic, higher and additional rate bands. These rates also apply to all parts of the UK. 

“New ‘property rates’ will be introduced for property income. Like savings income, these will be 22%, 42% and 47% in the basic, higher and additional rate bands instead of 20%, 40% and 45%. Unlike the savings and dividend rates, they do not apply in Scotland and Wales, but the government plans to allow Scotland and Wales to charge different rates on property income in a similar way.”

Note to editors

Deloitte spokespeople

Deloitte has a range of spokespeople available to comment on today’s Budget. They can be reached on 02920 927541 or one of the following numbers: 

• Ian Stewart – chief economist (+44 7785 682226) 
• Amanda Tickel – head of tax and trade policy (+44 7774 337581) 
• Rachel McEleney – personal tax (+44 7826 952940) 
• Alison Lobb – corporate tax (+44 7887 629107)
• James Caldecourt – trade and tariffs (+44 7774 337581) 
• Michael Nicolaides – employment tax (+44 7586 511104) 
• Simon Down – automotive (+44 7824 895798)
• Helen Kaye – hospitality (+44 7824 895798)
• Sophie Brown – retail (+44 7824 895798)
• Andrew Clarke – VAT (+44 7586 511104)
• Philip Parnell – business rates (+44 7990 434703) 
• Ed Roddis – public sector (+44 7855 399368)
• Toby Price – stamp duty (+44 7990 434703)
• James Clare – carried interest (+44 7586 511104) 

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