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This year’s
tax figures.

The main rates, bands and allowances for the 2026/27 tax year, which runs from 6 April 2026 to 5 April 2027. Each table links to the official page it comes from.

  • Checked 5 October 2026
  • Tax year 2026/27

At a glance, 2026/27

Jump to a table

Your income

Income Tax, National Insurance, dividends and savings, and reliefs you might be able to claim.

By where you live · 2026/27

Income Tax

Scotland sets its own bands for earnings, pensions and rental profit. England, Northern Ireland and Wales use the same bands this year.

England

These bands assume you get the standard Personal Allowance. Each rate only applies to the slice of income inside its band.

Income Tax bands in England, 2026/27
Annual income bandRate
Up to £12,5700%
£12,571 to £50,27020%
£50,271 to £125,14040%
Over £125,14045%
  • The Personal Allowance is £12,570. Once your adjusted net income (your taxable income less things like pension contributions and Gift Aid) goes over £100,000, you lose £1 of allowance for every £2 above that, so it’s gone by £125,140.
  • Savings and dividends follow their own rules, and your tax code or reliefs can change the result.

Source: HMRC, Income Tax rates and Personal Allowances (opens in a new tab)

Northern Ireland

These bands assume you get the standard Personal Allowance. Each rate only applies to the slice of income inside its band.

Income Tax bands in Northern Ireland, 2026/27
Annual income bandRate
Up to £12,5700%
£12,571 to £50,27020%
£50,271 to £125,14040%
Over £125,14045%
  • The Personal Allowance is £12,570. Once your adjusted net income (your taxable income less things like pension contributions and Gift Aid) goes over £100,000, you lose £1 of allowance for every £2 above that, so it’s gone by £125,140.
  • Savings and dividends follow their own rules, and your tax code or reliefs can change the result.

Source: HMRC, Income Tax rates and Personal Allowances (opens in a new tab)

Wales

These bands assume you get the standard Personal Allowance. Each rate only applies to the slice of income inside its band.

Income Tax bands in Wales, 2026/27
Annual income bandRate
Up to £12,5700%
£12,571 to £50,27020%
£50,271 to £125,14040%
Over £125,14045%
  • The Welsh Parliament sets the Welsh rates of Income Tax. For 2026/27 they give the same bands and rates as England and Northern Ireland.
  • The Personal Allowance is £12,570. Once your adjusted net income (your taxable income less things like pension contributions and Gift Aid) goes over £100,000, you lose £1 of allowance for every £2 above that, so it’s gone by £125,140.
  • Savings and dividends follow their own rules, and your tax code or reliefs can change the result.

Sources: HMRC, Welsh Income Tax (opens in a new tab)HMRC, Income Tax rates and Personal Allowances (opens in a new tab)

Scotland: Scottish Income Tax

Scottish rates apply to earnings, pensions and rental profit. They don’t apply to savings or dividends. The bands assume the standard Personal Allowance.

Income Tax bands in Scotland, 2026/27
Annual income bandRate
Up to £12,5700%
£12,571 to £16,53719%
£16,538 to £29,52620%
£29,527 to £43,66221%
£43,663 to £75,00042%
£75,001 to £125,14045%
Over £125,14048%
  • Whether you’re a Scottish taxpayer depends on where you live, not where your employer is. Savings and dividends are taxed at the UK rates.

Source: HMRC, Scottish Income Tax (opens in a new tab)

UK · standard rates for working age

National Insurance

The rates most employees, employers and self-employed people use. Employee NI is worked out each pay period, not as a yearly average.

National Insurance, UK · standard rates for working age
ContributionRate or threshold
Employee: Lower Earnings Limit£6,708 a year equivalent
Employee Class 1, category A: primary threshold£12,570 a year equivalent
Employee: above primary threshold to £50,2708%
Employee: above £50,2702%
Employer Class 1, category A15% above £5,000 a year equivalent
Employment Allowance, eligible employersUp to £10,500
Self-employed Class 4: profits over £12,570 to £50,2706%
Self-employed Class 4: profits over £50,2702%
Class 2 small profits threshold£7,105
Voluntary Class 2 below the small profits threshold£3.65 a week
  • If your self-employed profit is £7,105 or more, you’re treated as having paid Class 2 without being charged. Below that, you can choose to pay voluntarily to protect your State Pension record.
  • Other category letters, State Pension age, director rules and employer reliefs change the figures. Not every employer can claim Employment Allowance.
  • Pay between the Lower Earnings Limit and the primary threshold has no employee NI taken off, but the week still counts towards your State Pension.

Sources: HMRC, rates and thresholds for employers 2026 to 2027 (opens in a new tab)HMRC, Self-employed National Insurance rates (opens in a new tab)

UK · 2026/27

Dividends and savings

Allowances can cut the tax you pay, but income they cover still uses up part of your tax bands.

Dividends and savings, UK · 2026/27
Allowance or rate2026/27
Dividend allowance£500
Dividends in the basic-rate band10.75%
Dividends in the higher-rate band35.75%
Dividends in the additional-rate band39.35%
Personal Savings Allowance: basic-rate taxpayer£1,000
Personal Savings Allowance: higher-rate taxpayer£500
Personal Savings Allowance: additional-rate taxpayer£0
Starting rate for savingsUp to £5,000 at 0%
  • The dividend ordinary and upper rates went up on 6 April 2026. The £5,000 starting rate for savings shrinks as your other income goes over the Personal Allowance.
  • New savings rates have been announced from April 2027. They don’t apply to 2026/27, so don’t use them for this year’s figures.

Sources: HMRC, Tax on dividends (opens in a new tab)HMRC, Income Tax rates and allowances, current and past (opens in a new tab)HMRC, Tax-free savings allowances (opens in a new tab)

UK · if you qualify

Tax reliefs for individuals

These reliefs depend on your circumstances, so treat them as a starting point.

Tax reliefs for individuals, UK · if you qualify
ReliefCurrent position
Marriage Allowance: amount you can transfer£1,260
Marriage Allowance: most you can save a year£252
Blind Person’s Allowance, 2026/27£3,250
EIS Income Tax relief30% of what you invest
EIS yearly limit for relief£1 million, or £2 million with knowledge-intensive investment
SEIS Income Tax relief50% of what you invest
SEIS yearly limit for relief£200,000
VCT Income Tax relief20% of what you invest
VCT yearly limit for relief£200,000
  • EIS, SEIS and VCT relief has conditions for you, the company and how long you hold the shares, and can’t be more than your Income Tax bill. VCT relief dropped to 20% from 6 April 2026.
  • Marriage Allowance is for married couples and civil partners where one earns under the Personal Allowance and the other is a basic-rate taxpayer. It isn’t the same as Married Couple’s Allowance.
  • Tax relief for employees working from home isn’t available for 2026/27. You may still be able to claim other job expenses.

Sources: HMRC, Marriage Allowance (opens in a new tab)HMRC, Income Tax rates and allowances, current and past (opens in a new tab)HMRC, Claiming tax relief for job expenses (opens in a new tab)HMRC, Venture capital schemes, relief for investors (opens in a new tab)

Running a business

Corporation Tax, VAT, Making Tax Digital, and what you can claim when you buy equipment.

UK · limited companies

Corporation Tax

For a normal twelve-month accounting period, before any adjustment for associated companies.

Corporation Tax, UK · limited companies
Profit levelRate
£50,000 or less: small profits rate19%
Between £50,000 and £250,00025%, reduced by Marginal Relief
Over £250,000: main rate25%
Marginal Relief standard fraction3/200
  • The £50,000 and £250,000 limits are cut for a short accounting period and shared between associated companies. Some companies can’t use the small profits rate or Marginal Relief.

Sources: HMRC, Corporation Tax rates and reliefs (opens in a new tab)HMRC, Corporation Tax rates and allowances (opens in a new tab)HMRC, Marginal Relief for Corporation Tax (opens in a new tab)

UK · rates and thresholds

VAT

When you check the registration threshold, count everything you sell that isn’t exempt, including zero-rated sales.

VAT, UK · rates and thresholds
Rate or thresholdAmount
Standard rate20%
Reduced rate5%
Zero rate0%
You must register when taxable turnover goes over£90,000
You can ask to deregister when it falls below£88,000
  • Check your turnover over the last twelve months on a rolling basis, and whether you expect to go over £90,000 in the next 30 days alone. Overseas businesses have different rules.

Sources: HMRC, VAT rates (opens in a new tab)HMRC, VAT thresholds (opens in a new tab)HMRC, Register for VAT (opens in a new tab)

Income Tax and VAT

Making Tax Digital

If you’re a sole trader or landlord, whether you join depends on your qualifying income: your self-employment and property income added together, before expenses.

Making Tax Digital start dates
Who has to joinFrom
Qualifying income over £50,000 on your 2024/25 tax return6 April 2026
Qualifying income over £30,000 on your 2025/26 tax return6 April 2027
Qualifying income over £20,000 on your 2026/27 tax return6 April 2028
VAT-registered businesses, whatever their turnoverAlready required
  • Once you’re in, you keep digital records, send HMRC a quarterly update from compatible software, then finalise the year by 31 January.
  • HMRC works out your qualifying income from the tax return you sent in the previous tax year. Your quarterly update dates are on the tax calendar.

Sources: HMRC, Find out if and when you need to use Making Tax Digital for Income Tax (opens in a new tab)HMRC, Work out your qualifying income (opens in a new tab)HMRC, VAT Notice 700/22: Making Tax Digital for VAT (opens in a new tab)

Business equipment and machinery

Capital allowances

Capital allowances reduce your taxable profit when you buy equipment for the business. They’re a deduction, not money back on the price you paid.

Capital allowances, Business equipment and machinery
AllowanceCurrent position
Annual Investment AllowanceUp to £1 million per twelve-month period
Full expensing: qualifying companies and assets100%
Special-rate first-year allowance: qualifying companies and assets50%
First-year allowance on qualifying spending from January 202640%
Main pool writing down allowance14% from April 2026
Special rate pool writing down allowance6%
  • The main pool rate fell to 14% on 1 April 2026 for companies and 6 April 2026 for sole traders and partnerships. A period that spans the change uses a blended rate.
  • Cars don’t qualify for the Annual Investment Allowance. Full expensing and the 50% allowance are for companies buying new, unused assets.

Sources: HMRC, Annual Investment Allowance (opens in a new tab)HMRC, Full expensing (opens in a new tab)HMRC, Capital allowances (opens in a new tab)HMRC, Rates and pools (opens in a new tab)

Individuals · UK

Property and trading allowances

Small amounts of side income can be tax-free. You usually use the allowance instead of claiming your actual expenses.

Property and trading allowances, Individuals · UK
AllowancePer year
Trading allowanceUp to £1,000
Property allowanceUp to £1,000
Rent a Room: furnished room in your own home£7,500
Rent a Room where the income is shared£3,750
  • The £1,000 tests use your income before expenses. You may still need to register or send a return, and income from your own company or partnership doesn’t count.
  • You can’t use the property allowance alongside Rent a Room relief, or claim real expenses against the same income.

Sources: HMRC, Tax-free allowances on property and trading income (opens in a new tab)GOV.UK, Rent a Room Scheme (opens in a new tab)

Employers and payroll

What you pay your staff, what you deduct, and the benefits and expenses you report.

UK · from 1 April 2026

Minimum wage

The rate depends on the worker’s age and whether they’re an apprentice. A new rate applies from the start of the first pay period after it changes.

Minimum wage, UK · from 1 April 2026
WorkerMinimum per hour
Age 21 and over£12.71
Age 18 to 20£10.85
Under 18, above school leaving age£8.00
Apprentice rate, where it applies£8.00
  • The apprentice rate is for apprentices under 19, or 19 and over in the first year of their apprenticeship. After that, use the rate for their age.

Source: HMRC, rates and thresholds for employers 2026 to 2027 (opens in a new tab)

UK · 2026/27

Statutory pay

Check eligibility, average weekly earnings and the qualifying dates before you put these through payroll.

Statutory pay, UK · 2026/27
PaymentWeekly amount
Statutory Sick PayLower of £123.25 or 80% of average weekly earnings
Maternity or adoption: first 6 weeks90% of average weekly earnings
Maternity or adoption: remaining paid weeksLower of £194.32 or 90% of average weekly earnings
Paternity, shared parental, parental bereavement and neonatal careLower of £194.32 or 90% of average weekly earnings
  • Maternity rates apply from 5 April 2026 and the others from 6 April. Statutory Sick Pay is paid from the first day of sickness under the current rules.

Source: HMRC, rates and thresholds for employers 2026 to 2027 (opens in a new tab)

Automatic enrolment · 2026/27

Workplace pensions

For schemes that use qualifying earnings. Check each worker’s eligibility and how your scheme defines pensionable pay.

Workplace pensions, Automatic enrolment · 2026/27
Threshold or contribution2026/27
Earnings that trigger automatic enrolment, per year£10,000
Qualifying earnings band, per year£6,240 to £50,270
Minimum total contribution8% of qualifying earnings
Minimum from the employer3% of qualifying earnings
  • Age and worker status matter as well as earnings. Staff earning below the trigger can still ask to join.
  • The worker usually pays the rest of the 8%, with tax relief included. Schemes certified on a different basis can use different rules.

Sources: The Pensions Regulator, earnings thresholds (opens in a new tab)The Pensions Regulator, minimum contributions (opens in a new tab)

UK payroll · 2026/27

Student and postgraduate loans

What gets deducted depends on the loan plan and pay in each period. These are the yearly equivalents.

Student and postgraduate loans, UK payroll · 2026/27
Loan planYearly threshold
Plan 1£26,900
Plan 2£29,385
Plan 4£33,795
Plan 5£25,000
Postgraduate loan£21,000
  • Student loans take 9% of pay above the threshold, and postgraduate loans 6%. Someone can repay both at once.

Source: HMRC, rates and thresholds for employers 2026 to 2027 (opens in a new tab)

Your own vehicle · 2026/27

Business mileage

What your employer can pay you tax-free for business miles in your own vehicle. Getting to and from your usual workplace doesn’t count.

Business mileage, Your own vehicle · 2026/27
Vehicle and mileageApproved rate
Car or van: first 10,000 business miles55p per mile
Car or van: each mile after that25p per mile
Motorcycle24p per mile
Bicycle20p per mile
  • HMRC changed the 2026/27 rate for the first 10,000 miles to 55p in June 2026. National Insurance follows slightly different rules.
  • Fuel rates for company cars are separate and change during the year. Use HMRC’s dated tables for those.

Sources: HMRC, rates and thresholds for employers 2026 to 2027 (opens in a new tab)HMRC, Advisory fuel rates (opens in a new tab)

Benefits in kind · 2026/27

Company cars, vans and fuel

These figures give you the taxable value of the benefit. The tax you pay is that value multiplied by your tax rate.

Company cars, vans and fuel, Benefits in kind · 2026/27
Benefit2026/27
Electric company car4% of list price
Other company carsDepends on CO₂, electric range and fuel
Car fuel benefit multiplier£29,200
Company van, private use£4,170
Fuel for a company van, private use£798
Electric van£0
  • A car benefit is usually the list price, plus some accessories, times the percentage for that car. Use HMRC’s full table for hybrids, petrol and diesel.
  • Fuel benefit uses the same percentage times £29,200. Paying towards the car, salary sacrifice and limited private use can all change the figure.

Sources: HMRC, Company car appropriate percentages (opens in a new tab)HMRC, Travel, mileage and fuel rates (opens in a new tab)HMRC, Company vans, working out the value (opens in a new tab)

Savings, pensions and family

How much you can put away each year, and what happens to Child Benefit as your income goes up.

UK · 2026/27

Pension allowances

The annual allowance counts everything going into your pensions, including your employer’s contributions. It’s separate from the limit on tax relief for what you pay in yourself.

Pension allowances, UK · 2026/27
Allowance or testCurrent position
Standard annual allowance£60,000
Lowest tapered annual allowance£10,000
Money purchase annual allowance, once triggered£10,000
Taper: threshold income over£200,000
Taper: adjusted income over£260,000
Carry forwardUnused allowance from the previous 3 tax years
  • The taper only applies if you’re over both income tests. Taking money flexibly from a pension can trigger the lower money purchase annual allowance, so check before you pay in or draw out.

Sources: HMRC, Annual allowance (opens in a new tab)HMRC, Pension schemes rates and allowances (opens in a new tab)

UK · 2026/27

ISAs

The ISA allowance is the most you can pay in across all your adult ISAs in one tax year.

ISAs, UK · 2026/27
Allowance2026/27
Adult ISA allowance£20,000
Junior ISA annual limit£9,000
Lifetime ISA, counted within the adult allowance£4,000
Lifetime ISA government bonus25%, up to £1,000 a year
Existing Help to Buy ISA: monthly limit£200
Help to Buy ISA: first-home bonus25%, up to £3,000
  • Lifetime and Junior ISAs have their own rules for opening, paying in and taking money out.
  • Help to Buy ISAs are closed to new savers. If you have one, you can pay in until November 2029 and claim the bonus until November 2030, on a home costing up to £250,000, or £450,000 in London. What you pay in counts towards your £20,000.

Sources: HMRC, Individual Savings Accounts (opens in a new tab)GOV.UK, Junior ISAs (opens in a new tab)GOV.UK, Lifetime ISA (opens in a new tab)GOV.UK, Help to Buy ISA (opens in a new tab)

UK · 2026/27

Child Benefit

Child Benefit is paid for each child. If you or your partner earn over £60,000, a tax charge starts to claw it back.

Child Benefit, UK · 2026/27
Payment or charge2026/27
Eldest or only child£27.05 a week
Each additional child£17.90 a week
High Income Child Benefit Charge startsAdjusted net income above £60,000
How the charge builds up1% of the benefit for every £200 over £60,000
All of the benefit is paid backAdjusted net income of £80,000 or more
  • Adjusted net income is your taxable income less things like pension contributions and Gift Aid.
  • Even if the charge would cancel out the payments, it can be worth keeping the claim and opting out of payments. That can protect National Insurance credits.

Sources: GOV.UK, Child Benefit, what you’ll get (opens in a new tab)HMRC, High Income Child Benefit Charge (opens in a new tab)

Selling, buying and estates

Tax when you sell something at a gain, buy a home, or pass on an estate.

Individuals · 2026/27

Capital Gains Tax

Tax is on the gain, not the sale price. Take off allowable costs and losses first, then the rate depends on your other taxable income.

Capital Gains Tax, Individuals · 2026/27
Allowance or rate2026/27
Annual exempt amount£3,000
Gains within your unused basic-rate band18%
Gains above the basic-rate band24%
Gains qualifying for Business Asset Disposal Relief18%
Gains qualifying for Investors’ Relief18%
Gains on residential propertySame as other gains
Trustees and personal representatives24%
Annual exempt amount: most trustees£1,500
Report and pay on a UK home you sellWithin 60 days of completion
  • You pay 18% on gains that fit in your unused basic-rate band and 24% above it. Reliefs have conditions and lifetime limits.
  • Carried interest has its own rules from 6 April 2026 and isn’t covered here.
  • If you sell a UK residential property and there’s tax to pay, you report it and pay it through a Capital Gains Tax on UK property account within 60 days of completion. If your gains are under the annual exempt amount and you’re UK resident, you don’t need to.

Sources: HMRC, Capital Gains Tax rates and allowances (opens in a new tab)HMRC, Report and pay Capital Gains Tax on UK property (opens in a new tab)

England and NI, Scotland, Wales

Buying a home

Each part of the UK has its own tax when you buy a home. It depends on where the property is, not where you live.

England and NI: Stamp Duty Land Tax

Each rate applies to the part of the price inside its band, before any relief or surcharge.

Stamp Duty Land Tax, Homes · England and Northern Ireland
Part of the priceRate
Up to £125,0000%
£125,001 to £250,0002%
£250,001 to £925,0005%
£925,001 to £1.5 million10%
Over £1.5 million12%
  • If you’re buying an additional home, add 5 percentage points to each band. Buyers who aren’t UK resident, and some companies, pay more.
  • First-time buyers pay nothing on the first £300,000 and 5% on the rest up to £500,000. Over £500,000, the normal rates apply to the whole price.

Source: HMRC, Residential property rates (opens in a new tab)

Scotland: Land and Buildings Transaction Tax

Scotland’s version of Stamp Duty, with its own bands. Each rate applies to the part of the price inside its band.

Land and Buildings Transaction Tax, Homes · Scotland
Part of the priceRate
Up to £145,0000%
£145,001 to £250,0002%
£250,001 to £325,0005%
£325,001 to £750,00010%
Over £750,00012%
  • First-time buyer relief raises the 0% band to £175,000. The Additional Dwelling Supplement can apply on a second home.

Source: Revenue Scotland, residential rates and bands (opens in a new tab)

Wales: Land Transaction Tax

Wales has its own bands. Each main rate applies to the part of the price inside its band.

Land Transaction Tax, Homes · Wales
Part of the priceMain rate
Up to £225,0000%
£225,001 to £400,0006%
£400,001 to £750,0007.5%
£750,001 to £1.5 million10%
Over £1.5 million12%
  • Additional homes and company purchases use a separate higher-rate table with different bands. Don’t just add a surcharge to the main rates.
  • Commercial, mixed-use and lease purchases are worked out differently in England, Scotland and Wales.

Source: Welsh Revenue Authority, LTT rates and bands (opens in a new tab)

UK · estates and gifts

Inheritance Tax

The main thresholds for an estate, and the gifts you can make each year without them counting. Who owns what, where you live and reliefs can all change the answer.

Inheritance Tax, UK · estates and gifts
Threshold, exemption or rateCurrent position
Nil-rate band£325,000
Possible total with the residence nil-rate bandUp to £500,000
Rate above the available thresholds40%
Reduced rate if 10% or more of the estate goes to charity36%
Annual gift exemption, across everyone you give to£3,000
Small gifts, per person per tax year£250
Wedding or civil partnership gift to a child£5,000
Wedding or civil partnership gift to a grandchild or great-grandchild£2,500
Wedding or civil partnership gift to anyone else£1,000
Taxable lifetime gift into most trusts, trustees paying20% above the available threshold
100% Business and Agricultural Property Relief, from 6 April 2026First £2.5 million of qualifying property
Relief on qualifying property above £2.5 million50%
  • The residence nil-rate band needs a home left to children or grandchildren, and it tapers away for estates over £2 million. Gifts between spouses and civil partners have their own rules, and unused thresholds can pass to a surviving partner.
  • You can carry an unused annual exemption forward one tax year. You can’t use the small gifts exemption for someone who has had another exempt gift from you. Regular gifts out of spare income can be exempt if they meet the conditions.
  • If you die within seven years of a taxable gift, tax on it is reduced by taper relief: 40% within three years, then 32%, 24%, 16% and 8% for each later year up to seven. Taper cuts the tax, not the value of the gift. If you keep using or benefiting from something you gave away, it can still count as part of your estate.
  • Trust charges depend on earlier gifts and reliefs. If you pay the tax yourself instead of the trustees, the charge can be higher.
  • From 6 April 2026, 100% Business Relief and Agricultural Property Relief applies to the first £2.5 million of qualifying property combined. Above that, relief is 50%. Unused allowance can pass to a spouse or civil partner.
  • From 6 April 2027, most unused pension funds and death benefits are due to count towards your estate for Inheritance Tax. Death in service benefits are left out.

Sources: HMRC, Inheritance Tax (opens in a new tab)HMRC, Passing on a home (opens in a new tab)HMRC, Gifts (opens in a new tab)HMRC, Trusts and Inheritance Tax (opens in a new tab)HMRC, Agricultural Property Relief and Business Property Relief changes (opens in a new tab)HMRC, Inheritance Tax on unused pension funds and death benefits (opens in a new tab)

Not sure this
applies to you?

Ring us and tell us what you’re looking at. We’ll check it against your own figures and dates, and tell you what to do next.

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