The 2026/27 UK tax year runs from 6 April 2026 to 5 April 2027. This guide summarises confirmed rates using current GOV.UK and Scottish Government publications. Check the updated date and linked official source before relying on a threshold.
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 |
| Dividend ordinary / upper rates | 8.75% / 33.75% | 10.75% / 35.75% | Both +2 points |
| 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 the main England, Wales and Northern Ireland thresholds remain frozen in 2026/27. When cash earnings rise while thresholds do not, a larger share of income can move into tax even without a headline rate increase.
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.
If you want the live effect of those changes on pay, use the Salary After Tax Calculator or the Income Tax Calculator and then compare against the 2025/26 guide.
Scottish Income Tax bands for 2026/27
Scotland retains six rates for non-savings, non-dividend income. With the standard Personal Allowance, the 2026/27 ranges are: Starter 19% (£12,571–£16,537), Basic 20% (£16,538–£29,526), Intermediate 21% (£29,527–£43,662), Higher 42% (£43,663–£75,000), Advanced 45% (£75,001–£125,140), and Top 48% above £125,140.
Checks before 5 April 2027
- Use your £20,000 ISA allowance — not carried over
- Review whether planned disposals use your £3,000 CGT Annual Exempt Amount; tax and investment decisions require individual context
- 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
Official sources and related reads
- 2025/26 tax year guide — compare the frozen thresholds side by side.
- UK tax code guide — useful if PAYE is the route most readers will feel first.
- GOV.UK: Making Tax Digital eligibility — the official MTD threshold page for landlords and sole traders.
- GOV.UK: Income Tax rates and allowances — the current England, Wales and Northern Ireland bands.
- Scottish Government: Income Tax rates and bands — the 2026/27 Scottish bands.
- GOV.UK: Corporation Tax rates — useful if the 2026/27 plan includes a company structure.