Compare Tax Years Calculator
Compare Tax Years Calculator
Manual, assumptions and scope (UK property tax)
What This Calculator Does
The Compare Tax Years calculator shows how your estimated UK property-related tax changes across multiple tax years using the same inputs.
It compares three tax years side by side:
- 2025/26 — baseline year
- 2026/27 — dividend tax changes apply
- 2027/28 — rental income tax rate changes apply
By holding your income and expenses constant, the calculator isolates tax policy changes, rather than changes in your personal circumstances.
This allows you to answer questions such as:
- How much more tax will I pay in later years if nothing else changes?
- Which tax change matters most for my situation?
- Does the impact grow gradually or arrive all at once?
Who This Calculator Is For
This calculator is designed for:
- UK landlords in England & Wales
- Property investors operating as individuals
- Property companies distributing dividends
- Investors assessing the medium-term impact of Budget 2025
It is not intended for:
- Scottish income tax calculations
- Capital Gains Tax (CGT)
- Stamp Duty Land Tax (SDLT)
- Council tax
- Detailed tax planning or advice
How This Calculator Differs From Others
This tool answers a different question from other calculators on PropMatch:
Compare Tax Years
→ "How does my total tax change year by year under new rules?"
Budget Impact Wizard
→ "Which Budget measures affect me, and by how much?"
Rental Yield Calculator
→ "How profitable is this property before tax?"
Using them together gives the clearest picture.
Inputs Explained
The calculator asks for annual figures only.
Gross rental income
Your total rental income before expenses.
Allowable expenses
Costs incurred wholly and exclusively for renting the property (e.g. repairs, management fees, insurance).
Other personal income (individuals)
Employment income, pensions or other taxable income that affects tax bands and personal allowance.
Ownership structure
- Individual
- Limited company
This determines which tax system applies.
Why inputs don't change by year
The calculator intentionally keeps inputs constant so that any difference between years is driven by tax rule changes only.
Outputs Explained
Total tax
The total estimated tax payable for that year, based on ownership type:
- Individuals: income tax on rental income (after allowances and credits)
- Companies: corporation tax and (if applicable) dividend tax
This is the headline figure shown per year.
Change vs baseline
Each later year is compared against 2025/26:
- Absolute change (£) — how much more or less tax you pay
- Percentage change (%) — relative change
- Primary driver — which tax (income tax or dividend tax) caused the change
This makes it clear why the number moved, not just that it did.
Effective Tax Rates (Important)
The calculator shows two different effective tax rates, because they answer different questions.
Overall effective tax rate
Definition:
Total tax ÷ total taxable income
This is the standard, widely understood effective tax rate.
It answers: "What proportion of my taxable income goes to tax overall?"
This is the primary rate shown.
Property effective tax rate
Definition:
Tax attributable to rental income ÷ gross rental income
This answers a different question: "How heavily is my rental income taxed on its own?"
Why landlords care:
- Rental income may be stacked on top of other income
- Dividend tax should not distort property-specific returns
- It allows fair comparison with yields and financing costs
These two rates are related, but neither replaces the other.
Notes and Explanations
Each year includes short explanatory notes describing:
- Which Budget measures apply
- Why a rate or total changed
- How the result was calculated at a high level
These notes are explanatory only and are not a contractual API.
Assumptions and Limitations
- England & Wales only
- Based on announced Budget 2025 measures
- Simplified income tax modelling
- No loss relief or carry-forward modelling
- No personalised tax advice
This calculator is designed for directional understanding, not bespoke planning.
When to Use This Calculator
Use this tool if you want to:
- Understand medium-term tax impact
- Compare ownership structures at a high level
- Sense-check Budget headlines against your numbers
For structuring or optimisation decisions, always consult a qualified adviser.
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