New HMRC tax bands announced - with some households billed at 47%

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New HMRC tax bands have been announced - with people being billed at up to 47%. At the Labour Party Budget 2025, the government announced it is changing rates of tax on property, savings and dividend income to ensure income from assets is taxed fairly.

Those with property, savings or dividend income pay less tax than those whose income comes from employment or self-employment as they do not pay National Insurance.

And the government is increasing taxes on property, savings and dividend income, to help narrow the gap between tax paid on work and tax paid on income from assets.

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Income Tax rates for property income will be 22% at the property basic rate, 42% at the property higher rate, and 47% at