HMRC: technical legislative changes follow new savings and property tax rates from 6 April 2027

HM Revenue & Customs (HMRC) has published on GOV.UK an information note on the tax effects of changes linked to the new Income Tax rates on savings and property income. According to the government website, the document was published on 28 October 2026.

Background: decisions from Budget 2025

At Budget 2025, the government announced that the basic rate of Income Tax on savings income would rise from 6 April 2027. Separate tax rates for property income are due to be introduced from the same date. The document does not state the level of the new rates. It deals only with supporting legislation that has to refer to them.

Five amendments to the legislation

The amendments are meant to ensure that existing rules continue to work as intended. They cover the following:

• chargeable event certificates issued by insurers will refer to the savings basic rate when stating whether tax is treated as paid on a gain;
• for gains from certain foreign life insurance policies issued by insurers in the European Economic Area (EEA), the "comparable EEA tax charge" rule will refer to the savings basic rate rather than a fixed percentage;
• in the Transfer of Assets Abroad rules, income taxed at the new property basic rate or the savings basic rate will be treated in the same way as income taxed at the existing basic rate or starting rate for savings. This is intended to prevent a double charge;
• sums representing Income Tax deducted from certain UK public revenue dividends will be calculated at the savings basic rate;
• the same will apply to tax deducted from certain purchased life annuity payments.

Who is affected and from when

The changes will affect, among others, life insurance companies and their customers, issuers and holders of certain securities, individuals or trustees holding certain foreign life insurance policies, and people within the scope of the Transfer of Assets Abroad rules. The change to chargeable event certificates applies to events occurring on or after 6 April 2027. The other amendments take effect for the 2027 to 2028 tax year and later years.

Financial impact

HMRC does not expect these amendments to have an Exchequer impact in the years 2026 to 2027 through 2031 to 2032, or any significant macroeconomic effects. The administrative impact on life insurance companies is expected to be negligible, with one-off costs for familiarisation with the changes.

What this means for you

The document introduces no new burdens. According to HMRC, people affected do not need to take any additional action, because the amendments only adjust the legislation. This mainly concerns people with life insurance policies, annuities or assets abroad, for example in the EEA. The note does not describe the rise in rates itself, and it gives no information on how the announced rates will affect savings interest or rental income. It is worth following HMRC announcements or consulting a tax adviser.