UK tax rates and allowances 2026/27

How to use this page

Use it for

Current-year checks

When you want the latest 2026/27 figure before using a calculator, checking a guide, or sense-checking a plan.

Do not use it for

Personal advice

It is a rates page, not advice. Threshold interactions, tapering, and reliefs still need the right guide or calculator.

Last reviewed: 22 April 2026. Figures are presented for the UK tax year running from 6 April 2026 to 5 April 2027. Official links are at the bottom of the page.

Income Tax core figures

Figure	2026/27 value	Why it matters
Personal Allowance	GBP 12,570	The headline tax-free amount before tapering.
Basic-rate band	GBP 37,700	Added to the Personal Allowance, this takes the higher-rate threshold to GBP 50,270.
Higher-rate threshold	GBP 50,270	Above this, most employment income is taxed at 40%.
Additional-rate threshold	GBP 125,140	Above this, Income Tax moves to 45%.
Personal Allowance taper starts	GBP 100,000	This is where adjusted net income becomes the key planning number.
Personal Allowance fully gone	GBP 125,140	The reason the GBP 100,000 to GBP 125,140 band needs its own planning treatment.

Savings, dividends and gains

Dividends

Dividend allowance

GBP 500 for the tax year. Rates above that are 8.75%, 33.75%, and 39.35% depending on your tax band.

Capital gains

CGT annual exempt amount

GBP 3,000. Current mainstream rates are 18% and 24%, depending on how much of the gain sits above the basic-rate band.

Savings interest

Personal Savings Allowance

GBP 1,000 for basic-rate taxpayers, GBP 500 for higher-rate taxpayers, and nil for additional-rate taxpayers.

Wrappers and shelter limits

ISA

Annual ISA allowance

GBP 20,000 per adult. Use it or lose it each tax year.

LISA

Lifetime ISA allowance

GBP 4,000, included within the wider ISA allowance, with the 25% government bonus still in place.

JISA

Junior ISA allowance

GBP 9,000 per child.

Pension and planning thresholds

Pension input

Annual Allowance

GBP 60,000 before tapering or special rules like the MPAA change the picture.

Family planning

Child Benefit taper zone

The High Income Child Benefit Charge starts at adjusted net income of GBP 60,000 and reaches a full clawback at GBP 80,000.

Salary planning

ANI danger zone

GBP 100,000 to GBP 125,140 remains the key band for allowance tapering and effective marginal-rate drag.

Business and self-employed reference points

Corporation Tax

Main and small-profits bands

Corporation Tax remains a banded system: 19% small-profits rate below GBP 50,000, 25% main rate above GBP 250,000, and marginal relief between those points.

VAT

Registration threshold

The VAT registration threshold remains GBP 90,000 of taxable turnover on a rolling 12-month basis. Watch turnover, not profit.

Class 2 NI

Voluntary State Pension route

Class 2 is no longer a straightforward compulsory weekly charge for most sole traders. Use the current HMRC guidance before treating it as a flat automatic deduction in planning notes.

MTD timing: Making Tax Digital for Income Tax starts from April 2026 for qualifying self-employed people and landlords with income above GBP 50,000, then widens in later phases. Use HMRC's current guidance before building a record-keeping workflow around an older threshold summary.

Best next pages

Tax Drag Calculator Adjusted Net Income Calculator Child Benefit / HICBC Tax calendar Current-year updates Glossary

Official sources

Income Tax rates and allowances Tax on dividends Capital Gains Tax basics ISA overview Junior ISA overview Lifetime ISA overview Savings interest rules Child Benefit tax charge Corporation Tax rates and allowances VAT registration thresholds Self-employed National Insurance Making Tax Digital for Income Tax