Tax rates and allowances 2026/27 and 2027/28

Our free quick reference to UK tax rates and allowances for 2026/27 and 2027/28, checked against GOV.UK. Last updated: 4 November 2026. Figures marked (A) have been announced by the government but are not yet law, so they could still change.

Income tax allowances

Personal allowance
2026/27: £12,570  ·  2027/28: £12,570
Frozen until 5 April 2031.

Income limit for personal allowance
2026/27: £100,000  ·  2027/28: £100,000
Allowance reduced by £1 for every £2 of income over £100,000.

Marriage allowance (amount transferable to a spouse or civil partner)
2026/27: £1,260  ·  2027/28: £1,260

Married couple's allowance (born before 6 April 1935): maximum / minimum
2026/27: £11,700 / £4,530  ·  2027/28: £12,110 / £4,690 (A)
Relief given at 10%.

Married couple's allowance income limit
2026/27: £39,200  ·  2027/28: £40,600 (A)

Blind person's allowance
2026/27: £3,250  ·  2027/28: £3,370 (A)

Pension tax allowance (new, over State Pension age)
2026/27: n/a  ·  2027/28: Tax reduction of up to £94 (A)
For 2027/28 to 2029/30. In full where total income is up to £13,037, tapering to nil at £13,319.

High Income Child Benefit Charge
2026/27: £60,000 to £80,000  ·  2027/28: £60,000 to £80,000
1% of Child Benefit for every £200 of income over £60,000.

Income tax bands and rates (England, Wales and Northern Ireland)

Basic rate 20%
2026/27: £12,571 to £50,270  ·  2027/28: £12,571 to £50,270
Earnings, pensions and profits. Bands assume the standard personal allowance (basic rate band £37,700).

Higher rate 40%
2026/27: £50,271 to £125,140  ·  2027/28: £50,271 to £125,140

Additional rate 45%
2026/27: Over £125,140  ·  2027/28: Over £125,140
The personal allowance is lost completely above £125,140.

Scottish income tax (earnings, pensions and profits)

Starter rate 19%
2026/27: £12,571 to £16,537  ·  2027/28: to be confirmed
Scottish Budget for 2027/28 due on 3 December 2026.

Basic rate 20%
2026/27: £16,538 to £29,526  ·  2027/28: to be confirmed

Intermediate rate 21%
2026/27: £29,527 to £43,662  ·  2027/28: to be confirmed

Higher rate 42%
2026/27: £43,663 to £75,000  ·  2027/28: to be confirmed

Advanced rate 45%
2026/27: £75,001 to £125,140  ·  2027/28: to be confirmed

Top rate 48%
2026/27: Over £125,140  ·  2027/28: to be confirmed
Bands assume the standard personal allowance. Savings and dividends use the UK rates.

Savings and dividends

Dividend allowance
2026/27: £500  ·  2027/28: £500

Dividend rates
2026/27: Ordinary 10.75%, Upper 35.75%, Additional 39.35%  ·  2027/28: Ordinary 10.75%, Upper 35.75%, Additional 39.35%
Ordinary and upper rates rose by 2 points from 6 April 2026.

Savings income rates: basic / higher / additional
2026/27: 20% / 40% / 45%  ·  2027/28: 24% / 44% / 49% (A)
Already law at 22% / 42% / 47% from April 2027; the Budget adds a further 2 points (Finance Bill 2026-27).

Personal savings allowance: basic / higher / additional rate
2026/27: £1,000 / £500 / £0  ·  2027/28: £1,000 / £500 / £0

Starting rate for savings (0%)
2026/27: £5,000  ·  2027/28: £5,000
Reduced by other income above the personal allowance.

Property and trading income

Property income rates: basic / higher / additional
2026/27: 20% / 40% / 45%  ·  2027/28: 24% / 44% / 49% (A)
England, Wales and NI. Already law at 22% / 42% / 47% from April 2027; the Budget adds 2 points. Scottish rates to be set by Scotland.

Trading allowance
2026/27: £1,000  ·  2027/28: £3,000 (A)
Subject to Finance Bill 2026-27.

Property allowance
2026/27: £1,000  ·  2027/28: £1,000

National Insurance

Employee (Class 1) rates
2026/27: 8% / 2%  ·  2027/28: 8% / 2%
8% on earnings between £12,570 and £50,270 a year; 2% above.

Primary threshold / upper earnings limit (a year)
2026/27: £12,570 / £50,270  ·  2027/28: £12,570 / £50,270
Frozen until 2030/31.

Lower earnings limit (a week)
2026/27: £129  ·  2027/28: £133 (A)
Earnings at this level protect State Pension entitlement.

Employer (Class 1) rate
2026/27: 15%  ·  2027/28: 15%

Employer secondary threshold (a year)
2026/27: £5,000  ·  2027/28: £5,000

Class 1A and 1B (benefits and PAYE settlements)
2026/27: 15%  ·  2027/28: 15%
Follows the employer rate.

Employment Allowance
2026/27: £10,500  ·  2027/28: £10,500
Not available where the only employee paid above £5,000 is a sole director.

Self-employed Class 4 rates
2026/27: 6% / 2%  ·  2027/28: 6% / 2%
6% on profits between £12,570 and £50,270; 2% above.

Class 2 voluntary rate (a week) / small profits threshold
2026/27: £3.65 / £7,105  ·  2027/28: £3.80 / £7,355 (A)

Class 3 voluntary rate (a week)
2026/27: £18.40  ·  2027/28: £19.05 (A)

National Minimum Wage (from 1 April each year)

National Living Wage (21 and over)
2026/27: £12.71  ·  2027/28: £13.21 (A)
Hourly rates. 2027 rates apply from 1 April 2027.

18 to 20
2026/27: £10.85  ·  2027/28: £11.27 (A)

16 and 17
2026/27: £8.00  ·  2027/28: £8.31 (A)

Apprentice rate
2026/27: £8.00  ·  2027/28: £8.31 (A)

Statutory pay (a week)

Statutory Sick Pay
2026/27: £123.25  ·  2027/28: to be confirmed
Or 80% of average weekly earnings if lower.

Family pay (maternity, paternity, adoption, shared parental, bereavement, neonatal)
2026/27: £194.32  ·  2027/28: to be confirmed
Or 90% of earnings if lower; first 6 weeks of maternity and adoption pay at 90%.

Pensions

Annual allowance
2026/27: £60,000  ·  2027/28: £60,000

Money purchase annual allowance
2026/27: £10,000  ·  2027/28: £10,000

Tapered annual allowance: threshold income / adjusted income / minimum
2026/27: £200,000 / £260,000 / £10,000  ·  2027/28: £200,000 / £260,000 / £10,000

Lump sum allowance (tax-free cash)
2026/27: £268,275  ·  2027/28: £268,275

Lump sum and death benefit allowance
2026/27: £1,073,100  ·  2027/28: £1,073,100

Unused pensions and inheritance tax
2026/27: Outside the estate  ·  2027/28: Included in the estate
For deaths on or after 6 April 2027. Pensions left to a spouse, civil partner or charity stay exempt.

Salary sacrifice into pensions
2026/27: No NI cap  ·  2027/28: No NI cap
From 2029/30 only the first £2,000 a year is due to be free of National Insurance.

ISAs

Adult ISA limit
2026/27: £20,000  ·  2027/28: £20,000

Cash ISA limit
2026/27: £20,000  ·  2027/28: £20,000 (A)
The planned cut to £12,000 from April 2027 was reversed at the Budget; regulations to follow.

Lifetime ISA
2026/27: £4,000  ·  2027/28: £4,000
Counts within the £20,000. A new First Time Buyer ISA replaces it for new savers from April 2029.

Junior ISA
2026/27: £9,000  ·  2027/28: £9,000

State Pension

New State Pension (full rate)
2026/27: £241.30 a week  ·  2027/28: £13,036.40 a year (about £250.70 a week) (A)

Student loan repayment thresholds (a year)

Plan 1 (9%)
2026/27: £26,900  ·  2027/28: £28,005 (A)

Plan 2 (9%)
2026/27: £29,385  ·  2027/28: £29,385
Frozen until April 2030.

Plan 4, Scotland (9%)
2026/27: £33,795  ·  2027/28: to be confirmed

Plan 5 (9%)
2026/27: £25,000  ·  2027/28: to be confirmed

Postgraduate loan (6%)
2026/27: £21,000  ·  2027/28: to be confirmed

Capital gains tax

Annual exempt amount: individuals / most trusts
2026/27: £3,000 / £1,500  ·  2027/28: £3,000 / £1,500

Rates: within basic rate band / above
2026/27: 18% / 24%  ·  2027/28: 18% / 24%
Same rates for residential property. Trustees and personal representatives: 24%.

Business Asset Disposal Relief rate
2026/27: 18%  ·  2027/28: 18%

Business Asset Disposal Relief lifetime limit
2026/27: £1 million  ·  2027/28: £500,000 (A)
For disposals on or after 6 April 2027. Relief already claimed counts towards the limit.

Investors' Relief: rate / lifetime limit
2026/27: 18% / £1 million  ·  2027/28: 18% / £1 million

Founders' relief (new)
2026/27: n/a  ·  2027/28: 10% up to £10 million (A)
From 6 April 2027 for founders of fast-growing companies meeting strict size and growth tests. Under consultation until 30 November 2026.

UK residential property: report and pay
2026/27: Within 60 days of completion  ·  2027/28: Within 60 days of completion

Inheritance tax

Nil-rate band
2026/27: £325,000  ·  2027/28: £325,000
Frozen until 5 April 2031.

Residence nil-rate band
2026/27: £175,000  ·  2027/28: £175,000
For a home left to children or grandchildren. Tapered away above estates of £2 million.

Rate on death / with 10% to charity / lifetime chargeable transfers
2026/27: 40% / 36% / 20%  ·  2027/28: 40% / 36% / 20%

Agricultural and business property relief: 100% relief allowance
2026/27: £2.5 million  ·  2027/28: £2.5 million
50% relief above the allowance. Unused allowance can pass to a surviving spouse or civil partner.

Shares on AIM and similar markets
2026/27: 50% relief  ·  2027/28: 50% relief

Annual exemption
2026/27: £3,000  ·  2027/28: £3,000
Unused amount can be carried forward one year.

Small gifts
2026/27: £250 per person  ·  2027/28: £250 per person
Cannot be combined with another exemption for the same person.

Wedding or civil partnership gifts
2026/27: £5,000 / £2,500 / £1,000  ·  2027/28: £5,000 / £2,500 / £1,000
From a parent / grandparent / anyone else.

Corporation tax and capital allowances

Main rate (profits over £250,000)
2026/27: 25%  ·  2027/28: 25%
Rates for financial years starting 1 April.

Small profits rate (profits up to £50,000)
2026/27: 19%  ·  2027/28: 19%

Marginal relief: profits £50,000 to £250,000
2026/27: Fraction 3/200  ·  2027/28: Fraction 3/200
Marginal rate of 26.5% on profits in the band. Limits are divided by the number of associated companies plus one, and reduced for periods under 12 months.

Annual investment allowance
2026/27: £1 million  ·  2027/28: £1 million

Full expensing (companies, new main rate plant)
2026/27: 100%  ·  2027/28: 100%

Main rate first-year allowance (includes unincorporated businesses)
2026/27: 40%  ·  2027/28: 50% (A)
50% for spending on or after 1 January 2027.

Writing-down allowance: main pool / special rate pool
2026/27: 14% / 6%  ·  2027/28: 12% / 6% (A)
12% from 1 April 2027 (companies) or 6 April 2027 (individuals).

New electric company cars: first-year allowance
2026/27: 100%  ·  2027/28: Main pool after 31 March 2027
100% to 31 March 2027 (companies) / 5 April 2027 (individuals); after that into the main pool.

Corporation tax due
2026/27: 9 months and 1 day after the year end  ·  2027/28: 9 months and 1 day after the year end
For companies with profits up to £1.5 million.

R&D tax relief: expenditure credit
2026/27: 20%  ·  2027/28: 20%
Taxable credit under the merged scheme.

R&D-intensive loss-making companies (30%+ of costs on R&D)
2026/27: 86% extra deduction; up to 14.5% payable credit  ·  2027/28: 86% extra deduction; up to 14.5% payable credit
Payable credit capped at £20,000 plus 300% of PAYE and NI.

VAT

Standard / reduced rate
2026/27: 20% / 5%  ·  2027/28: 20% / 5%

Registration threshold
2026/27: £90,000  ·  2027/28: £90,000

Deregistration threshold
2026/27: £88,000  ·  2027/28: £88,000

Flat Rate Scheme: limited cost business rate
2026/27: 16.5%  ·  2027/28: 16.5%

Online marketplaces and VAT
2026/27: n/a  ·  2027/28: Marketplaces to account for VAT from October 2027 (A)
On sales of goods to consumers by UK businesses that are VAT-registered or sell over £90,000 a year on that platform. Details to follow.

Stamp Duty Land Tax (England and Northern Ireland)

Residential rates
2026/27: 0% to £125,000; 2% to £250,000; 5% to £925,000; 10% to £1.5m; 12% above  ·  2027/28: No change announced

First-time buyers' relief
2026/27: 0% to £300,000; 5% to £500,000  ·  2027/28: No change announced
No relief if the price is over £500,000.

Additional homes surcharge / non-UK resident surcharge
2026/27: +5% / +2%  ·  2027/28: +5% / +2%

Company cars and vans

Electric cars (0g/km)
2026/27: 4%  ·  2027/28: 5%
Then 7% (2028/29) and 9% (2029/30).

Plug-in hybrids 1-50g/km, by electric range
2026/27: 4% to 16%  ·  2027/28: 5% to 17%
Range bands end in April 2028: all 1-50g/km cars then 18% (2028/29) and 19% (2029/30).

Cars 51g/km and above
2026/27: 17% to 37%  ·  2027/28: 18% to 37%
Rising 1% for every 5g/km.

Maximum percentage / diesel supplement
2026/27: 37% / +4%  ·  2027/28: 37% / +4%
Maximum 38% (2028/29) and 39% (2029/30).

Car fuel benefit multiplier
2026/27: £29,200  ·  2027/28: £30,200 (A)

Van benefit / van fuel benefit
2026/27: £4,170 / £798  ·  2027/28: £4,310 / £825 (A)

Payrolling benefits
2026/27: Optional  ·  2027/28: Required for cars, vans, fuel and medical cover (A)
From 6 April 2027. Most other benefits follow from April 2028.

Mileage and travel

Cars and vans: first 10,000 business miles
2026/27: 55p  ·  2027/28: 55p
Per mile, per tax year.

Cars and vans: over 10,000 business miles
2026/27: 25p  ·  2027/28: 35p (A)

Motorcycles / bicycles
2026/27: 24p / 20p  ·  2027/28: 24p / 20p

Advisory electricity rate (company electric cars)
2026/27: 7p home / 15p public  ·  2027/28: to be confirmed
Rates from 1 September 2026; next review 1 December 2026.

Subsistence scale rates
2026/27: £5 / £10 / £25  ·  2027/28: £5 / £10 / £25
5 hours / 10 hours / 15 hours and still travelling at 8pm. From 6 April 2028: £20 (over 5 hours), £60 (over 10 hours), £75 (over 24 hours).

Staff benefits and allowances

Trivial benefits
2026/27: £50 per gift  ·  2027/28: £50 per gift
Not cash or a cash voucher, and not a reward for work.

Trivial benefits: directors of close companies
2026/27: £300 a year  ·  2027/28: £300 a year

Christmas gifts to staff
2026/27: Up to £50 a head  ·  2027/28: Up to £50 a head
Treated as trivial benefits: a turkey, wine or a hamper is fine; cash or cash-like vouchers are taxable.

Christmas party or annual staff event
2026/27: £150 a head  ·  2027/28: £150 a head
Must be annual and open to all staff, or all staff at one location.

Gifts to clients
2026/27: £50 per person a year  ·  2027/28: £50 per person a year
Tax-deductible only if branded, and not food, drink, tobacco or vouchers.

Long-service awards
2026/27: £50 per year of service  ·  2027/28: £50 per year of service
After at least 20 years; not cash.

Homeworking allowance from the employer
2026/27: £6 a week (£26 a month)  ·  2027/28: £6 a week (£26 a month)
Where homeworking is agreed. Employees can no longer claim this relief from HMRC themselves since April 2026.

Staff suggestion schemes
2026/27: £25 / up to £5,000  ·  2027/28: £25 / up to £5,000
Encouragement awards / implemented ideas.

Eye tests and screen glasses; flu jabs
2026/27: Tax-free  ·  2027/28: Tax-free
Employers can reimburse as well as provide, from 6 April 2026. Not under salary sacrifice.

One mobile phone; workplace parking; EV charging at work
2026/27: Tax-free  ·  2027/28: Tax-free
Not under salary sacrifice.

Health screening; counselling
2026/27: Tax-free  ·  2027/28: Tax-free
One screening and one check-up a year.

Medical treatment to help a return to work
2026/27: £500 a year  ·  2027/28: £500 a year
After 28 days or more off sick.

Beneficial loans (including directors' loan accounts)
2026/27: Up to £10,000  ·  2027/28: Up to £10,000
No benefit if the balance stays under £10,000 all year. A separate corporation tax charge can still apply to overdrawn directors' loans.

Official rate of interest
2026/27: 3.75%  ·  2027/28: to be confirmed

Overdrawn directors' loans: section 455 charge
2026/27: 35.75%  ·  2027/28: 35.75%
On loans made from 6 April 2026 (33.75% before). Repayable when the loan is repaid or written off.

Relocation expenses
2026/27: Up to £8,000  ·  2027/28: Up to £8,000

Making Tax Digital for Income Tax

Who must join (qualifying income from self-employment and property)
2026/27: Over £50,000 (from April 2026)  ·  2027/28: Over £30,000 (from April 2027)
Over £20,000 from April 2028, based on 2026/27 income.

Penalty points for late quarterly updates
2026/27: Apply  ·  2027/28: None in 2027/28 for April 2027 joiners (A)
Quarterly updates are still required.

Key Self Assessment dates

Online tax return deadline
2026/27: 31 January 2027 (2025/26 return)  ·  2027/28: 31 January 2028 (2026/27 return)

Payments on account
2026/27: 31 January and 31 July  ·  2027/28: 31 January and 31 July
Balancing payment due 31 January after the tax year.

Directors of close companies (from 2025/26 returns)
2026/27: Extra details required  ·  2027/28: Extra details required
For each company: name, registration number, dividends received and highest % shareholding.

Talk it through with us

These figures are general information, not advice. If you would like to know what they mean for you or your company, book a free 30-minute consultation, or get a fee estimate in 2 minutes. Any work we do is for a fixed fee agreed up front. Prefer to talk now? Call 0161 327 0047.

Jackson Lee Accountants Ltd, Chartered Certified Accountants, 10 St Mary's Place, Bury BL9 0DZ.