Tax year 2026/2027
Our Tax. Stats. guide, contains all the key UK tax information you need for the 2026/27 tax year.
Tax. Stats. clearly sets out all the rates and thresholds likely to affect you and your business, including up-to-date details on income tax rates, national insurance contributions, capital gains tax, business taxes and tax reliefs.
* Assumes not subject to the Scottish or Welsh rates of income tax.
† The Personal Allowance is reduced by £1 for every £2 of income over £100,000: those with an income over £125,140, therefore, have no Personal Allowance. The effective income tax rate for earnings between £100,000 and £125,140 is 60%.
The Personal Allowance, higher rate threshold, and additional rate threshold, will be ‘frozen’ until 5 April 2031.
* Dividend income is treated as the ‘top slice’ of income and will be taxed at an individual’s highest marginal tax rate.
* The tax rates applicable to savings (and property) income will increase from the 2027-28 tax year. With effect from 6 April 2027, the rates will be: basic rate, 22%; higher rate, 42%; and additional rate, 47%.
† The Starting rate limit for savings is £5,000 and applies to taxable savings income (after Personal Allowance) only. Taxable non-savings income received in excess of the limit will mean the Starting rate for savings income will not apply.
* From 6 April 2026, the tax regime for carried interest will sit wholly within the Income Tax framework.
† Where the carried interest is ‘qualifying’, the amount to be treated as trading profits is 72.5% of the ‘qualifying profits’.
* Deductible against corporation tax.
† Subject to an annual Apprenticeship Levy allowance of £15,000 (meaning the levy is only payable by employers with an annual pay bill over £3m). The levy is payable monthly and collected under the UK’s PAYE system.
† Previously known as Entrepreneurs’ Relief.
* Thresholds reduce proportionally for short accounting periods and by reference to the number of associated companies.
* In April 2025, the government confirmed plans to introduce a new single tax on securities, to be known as the Securities Transfer Charge (STC), to replace both Stamp Duty and SDRT from 2027.
† For purchases of property in Scotland, Land and building transaction tax (LBTT) applies, and for purchases of property Wales, Land transaction tax (LTT) applies.
* From 6 April 2027, the maximum annual amount that can be contributed to a Cash ISA will be capped at £12,000 for individuals under the age of 65. The total maximum total annual investment limit for ISAs will remain at £20,000.
† There is a 3-year “carry forward” for unused annual allowances; a £10,000 “money purchase annual allowance” applies to those who have accessed pension using a flexible option (e.g. drawdown).
