The 2026/27 UK tax year runs from 6 April 2026 to 5 April 2027. This guide summarises the rates confirmed by HMRC and the changes being consulted on. We'll update as the Autumn Budget 2025 and Spring Statement 2026 land — so check the "Updated" date at the top of this page.
Confirmed rates — 2026/27 vs 2025/26
| Threshold | 2025/26 | 2026/27 | Change |
|---|---|---|---|
| Personal Allowance | £12,570 | £12,570 | Frozen |
| Basic-rate threshold | £50,270 | £50,270 | Frozen |
| Additional-rate threshold | £125,140 | £125,140 | Frozen |
| ISA annual allowance | £20,000 | £20,000 | Unchanged |
| Pension annual allowance | £60,000 | £60,000 | Unchanged |
| Dividend Allowance | £500 | £500 | Unchanged |
| CGT Annual Exempt Amount | £3,000 | £3,000 | Unchanged |
| IHT nil-rate band | £325,000 | £325,000 | Frozen to 2030 |
| Residence nil-rate band | £175,000 | £175,000 | Frozen to 2030 |
The fiscal-drag freeze continues
The Personal Allowance and Income Tax thresholds remain frozen through to April 2028 at current levels. With typical earnings inflation of 4–5%, this drags an estimated 2 million more people into paying Income Tax and another 1.5 million into the higher-rate band by 2028 — without ever needing a rate change.
Changes landing in 2026/27
The following took effect or will take effect during 2026/27:
- Making Tax Digital (MTD) for Self Assessment starts April 2026 for sole traders and landlords with gross trading/rental income above £50,000. Quarterly digital submissions become mandatory.
- Inheritance Tax on pensions: from April 2027, unused pension pots will be brought inside the IHT net. Worth knowing now if you're planning estate structure for retirement.
- Furnished-holiday-let regime abolished from April 2025 (so already in effect for 2026/27 planning). FHL-specific CGT reliefs and pension-contribution status no longer apply.
- Non-dom regime replaced — the residence-based system is now in its second year; the 4-year Foreign Income and Gains regime applies to new arrivals from April 2025.
Scottish bands — still not fully confirmed
Holyrood publishes Scottish bands at the Scottish Budget, typically December or January. 2026/27 Scottish bands are expected to follow the current six-band structure; check back after the 2025 Scottish Budget for confirmation.
Things to lock in before 5 April 2026
- Use your £20,000 ISA allowance — not carried over
- Use your £3,000 CGT Annual Exempt Amount — book gains you'd have made anyway
- Use your £500 Dividend Allowance if you have dividend income
- Maximise pension contributions — remember carry-forward from the prior 3 years
- If MTD will capture you, get compatible accounting software running now — you need a clean 2026/27 ledger from day one