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tax · 7 min read

UK Tax Year 2026/27: Confirmed Rates, Upcoming Changes, Planning Checklist

By: CalculatorZone editorsPublished: 15 January 2026Updated: 10 March 2026

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

Headline thresholds and allowances
Threshold2025/262026/27Change
Personal Allowance£12,570£12,570Frozen
Basic-rate threshold£50,270£50,270Frozen
Additional-rate threshold£125,140£125,140Frozen
ISA annual allowance£20,000£20,000Unchanged
Pension annual allowance£60,000£60,000Unchanged
Dividend Allowance£500£500Unchanged
Dividend ordinary / upper rates8.75% / 33.75%10.75% / 35.75%Both +2 points
CGT Annual Exempt Amount£3,000£3,000Unchanged
IHT nil-rate band£325,000£325,000Frozen to 2030
Residence nil-rate band£175,000£175,000Frozen 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.

Planning takeaway: if your salary has risen since 2021 but you haven't explicitly rebuilt your pension contributions, you're almost certainly paying a larger share of tax than you were — even though the headline rates look identical.

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

See the same numbers in the 2025/26 guide for year-on-year comparison. Use the Salary After Tax or Income Tax calculator — both use 2026/27 England, Wales and Northern Ireland figures.