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.
How to use this page
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: 14 September 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 | £12,570 | The headline tax-free amount before tapering. |
| Basic-rate band | £37,700 | Added to the Personal Allowance, this takes the higher-rate threshold to £50,270. |
| Higher-rate threshold | £50,270 | Above this, most employment income is taxed at 40%. |
| Additional-rate threshold | £125,140 | Above this, Income Tax moves to 45%. |
| Personal Allowance taper starts | £100,000 | This is where adjusted net income becomes the key planning number. |
| Personal Allowance fully gone | £125,140 | The reason the £100,000 to £125,140 band needs its own planning treatment. |
Savings, dividends and gains
Dividends
Dividend allowance
£500 for the tax year. Rates above that are 10.75%, 35.75%, and 39.35% depending on your tax band.
Capital gains
CGT annual exempt amount
£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
£1,000 for basic-rate taxpayers, £500 for higher-rate taxpayers, and nil for additional-rate taxpayers.
Wrappers and shelter limits
ISA
Annual ISA allowance
£20,000 per adult. Use it or lose it each tax year.
LISA
Lifetime ISA allowance
£4,000, included within the wider ISA allowance, with the 25% government bonus still in place.
JISA
Junior ISA allowance
£9,000 per child.
Pension and planning thresholds
Pension input
Annual Allowance
£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 £60,000 and reaches a full clawback at £80,000.
Salary planning
ANI danger zone
£100,000 to £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 £50,000, 25% main rate above £250,000, and marginal relief between those points.
VAT
Registration threshold
The VAT registration threshold remains £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 £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
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
Frequently asked questions
The questions readers most commonly ask about this topic. Each answer is reviewed by the Editor against current HMRC, FCA and MoneyHelper guidance.
▸ What are the 2026/27 UK income tax rates?
England, Wales and Northern Ireland: 0% on the first £12,570 (Personal Allowance), 20% basic rate to £50,270, 40% higher rate to £125,140, 45% additional rate above. Scotland has 6 bands: 19% starter to £16,537, 20% basic to £29,526, 21% intermediate to £43,662, 42% higher to £75,000, 45% advanced to £125,140, 48% top rate above. Personal Allowance tapers above £100,000 in both regimes.
▸ What are the National Insurance rates for 2026/27?
Employees: 8% on earnings between £12,570 and £50,270, 2% above. Employers: 15% above £5,000 per employee. Self-employed: Class 4 at 6% on profits between £12,570 and £50,270, 2% above; Class 2 is treated as paid on profits of £7,105 or more, and voluntary Class 2 below that is £3.65 a week. Class 3 voluntary (to fill State Pension gaps) is £18.40/week. The £12,570 and £50,270 thresholds are frozen until 5 April 2031.
▸ What's the Personal Allowance for 2026/27 and when does it taper?
The Personal Allowance is £12,570 — unchanged since 2021 and frozen until 5 April 2031. The taper kicks in when your adjusted net income exceeds £100,000: you lose £1 of allowance for every £2 of income above £100,000, so it's fully gone at £125,140. This creates the 60% marginal rate band between those two figures.
▸ What's the 2026/27 ISA allowance?
£20,000 across all ISA types combined (Cash, Stocks & Shares, Innovative Finance, Lifetime). The Lifetime ISA has a separate £4,000 sub-limit (which counts toward the overall £20,000). Junior ISAs have a separate £9,000 allowance per child. These limits stay the same until April 2031. From 6 April 2027 the annual limit for cash ISAs will be £12,000 for people under 65, and £20,000 for people aged 65 or over.
▸ What's the 2026/27 Capital Gains Tax allowance and rate?
Annual exempt amount: £3,000 (it was £6,000 in 2023/24 and £12,300 before that). Rates from 30 October 2024 onwards: 18% basic-rate band, 24% higher-rate band on most assets. Residential property: 18% / 24%. Carried interest: taxed as Income Tax and National Insurance from 6 April 2026 (32% Capital Gains Tax in 2025/26). Business Asset Disposal Relief: 18% on qualifying gains from 6 April 2026 (14% from 6 April 2025 to 5 April 2026), within the £1m lifetime limit.
▸ What's the pension annual allowance for 2026/27?
£60,000 standard annual allowance. Tapered annual allowance reduces this by £1 for every £2 of adjusted income above £260,000, down to a minimum of £10,000, where threshold income is also over £200,000. Money Purchase Annual Allowance (after flexible drawdown): £10,000. Unused allowance can be carried forward 3 years. Lump Sum Allowance: £268,275. Lump Sum and Death Benefit Allowance: £1,073,100.
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