Personal Income Tax Rates and Bands 2026/27
| Non-Savings and Non-Dividend Income in England, Wales and Northern Ireland: | 2026/27 |
| Personal Allowance: 0% | £0 - £12,570 |
| Basic rate: 20% | £12,570 - £50,270 |
| Higher rate: 40% | £50,271 - £125,140 |
| Additional rate: 45% | Above £125,140 |
| Dividend and Savings Income in UK | 2026/27 | 2025/26 |
| Dividends at basic rate | 10.75% | 8.75% |
| Dividends at higher rate | 35.75% | 33.75% |
| Dividends at additional rate | 39.35% | 39.35% |
| Savings at basic rate | 20%* | 20%* |
| Savings at higher rate | 40% | 40% |
| Savings at additional rate | 45% | 45% |
| Personal allowances | 2026/27 | 2025/26 |
| Personal allowance* | £12,570 | £12,570 |
| Dividend allowance | £500 | £500 |
| Maximum married couple’s allowance for those born before 6 April 1935* | £11,700 | £11,270 |
| Minimum married couple's allowance | £4,530 | £4,360 |
| Income limit for married couple's allowance: born before 1935 | £37,700 | £37,700 |
| Marriage allowance** | £1,260 | £1,260 |
| Micro entrepreneur’s allowance (property or trading income) | £1,000 | £1,000 |
| Income limit for personal allowance* | £100,000 | £100,000 |
| Blind person’s allowance | £3,250 | £3,130 |
| Rent-a-room relief | £7,500 | £7,500 |
| Personal savings allowance for basic rate taxpayers | £1,000 | £1,000 |
| Personal savings allowance for higher rate taxpayers | £500 | £500 |
| Personal savings allowance for additional rate taxpayers | £0 | £0 |
**One spouse/civil partner can transfer up to £1,260 of their unused Personal Allowance and their spouse/partner is not a higher or additional rate tax payer
| National insurance | 2026/27 | 2025/26 |
| Lower earnings limit, primary class 1 (per week) | £129 | £125 |
| Upper earnings limit, primary class 1 (per week) | £967 | £967 |
| Apprentice Upper Secondary threshold (AUST) for under age 25 | £967 | £967 |
| Primary threshold (per week) | £242 | £242 |
| Secondary threshold (per week) | £96 | £96 |
| Employment allowance (per year/employer) | £10,500 | £5,000 |
| Employee’s primary class 1 rate between primary threshold and upper earnings limit* | 8% | 8% |
| Employee’s primary class 1 rate above upper earnings limit | 2% | 2% |
| Employer's secondary class 1 rate above secondary threshold* | 15% | 15% |
|
Class 3 voluntary rate (per week)
|
£18.40 |
£17.75
|
|
Class 4 lower profits limit
|
£12,570
|
£12,570
|
| Class 4 upper profits limit
|
£50,270
|
£50,270
|
| Class 4 rate between lower profits limit and upper profits limit
|
6%
|
6%
|
| Class 4 rate above upper profits limit
|
2%
|
2%
|
Class 2 NICs: Abolished from 6 April 2024. Self-employed individuals are no longer required to pay Class 2 contributions, but may choose to make voluntary contributions to protect entitlement to state benefits.
| Pensions | 2026/27 | 2025/2026 |
| Annual allowance* | £60,000 | £60,000 |
| Money purchase annual allowance | £10,000 | £10,000 |
| Lump sum allowance | £268,275 | £268,275 |
| Lump sum and death benefit allowance | £1,073,100 | £1,073,100 |
| Overseas transfer allowance | £1,073,100 | £1,073,100 |
| EIS and VCTs | 2026/27 | 2025/26 |
| Enterprise Investment Scheme (EIS) * (maximum investment per year) | £1,000,000 | £1,000,000 |
| Venture Capital Trust (VCT) (maximum investment per year) | £200,000 | £200,000 |
| Individual Savings Account (ISA) | 2026/27 | 2025/26 |
| ISA (annual allowance) | £20,000 | £20,000 |
| Junior ISA (annual allowance) | £9,000 | £9,000 |
| Lifetime ISA (annual allowance) | £4,000 | £4,000 |
| Capital Gains Tax | 2026/27 | 2025/26 |
| Basic Rate | 18% | 18% |
| Higher Rate | 24% | 24% |
| Annual exemption – individuals, personal representatives and trusts for disabled persons
|
£3,000
|
£3,000
|
| Annual exemption – other trusts
|
£1,500
|
£1,500
|
|
Business Asset Disposal Relief (BADR) lifetime limit
|
£1,000,000
|
£1,000,000
|
| Business Asset Disposal Relief (BADR) rate
|
18%
|
14%
|
| Chattels exemption
|
£6,000
|
£6,000
|
| Carried interest
|
32% | 32% |
| Inheritance tax | 2026/27 | 2025/26 |
| Nil-rate band | £325,000 | £325,000 |
| Residence nil-rate band (RNRB)* | £175,000 | £175,000 |
| Standard rate | 40% | 40% |
| Reduced rate** | 36% | 36% |
| Rate for chargeable lifetime transfers | 20% | 20% |
| Gifts to charities | Unlimited | Unlimited |
| Gifts to spouses | Unlimited | Unlimited |
| Small gifts to same person | £250 | £250 |
| Annual gifting exemption | £3,000 | £3,000 |
| Wedding gifts to children | £5,000 | £5,000 |
| Wedding gifts to grandchildren | £2,500 | £2,500 |
| Wedding gifts to any other person | £1,000 | £1,000 |
**Applies where at least 10% of the net estate is left to charity
| Child benefit | 2026/27 per week | 2025/26 per week |
| First child | £27.05 | £26.05 |
| Other children | £17.90 | £17.25 |
| Pension credit | 2026/27 per week | 2025/26 per week |
| Single Person | £238.00 | £227.10 |
| Couple | £363.25 | £346.60 |
| Key benefits | 2026/27 per week | 2025/26 per week |
| Jobseekers Allowance (25+) | Up to £95.55 per single person |
Up to £92.50 per single person
|
| Old State Pension (reached SPA by 05.04.2016) | £184.90 | £176.45 |
| Addition for spouse / civil partner
|
£110.94 | £105.70 |
| New State Pension (post 05.04.2016)
|
£241.30 | £230.25 |
Due Dates for Tax Payment
Income Tax
|
Tax
|
Due
|
| Income Tax - Interim Payments | 31st January during the tax year and 31st July following the end of tax year |
| Income Tax - Final Payment | 31st January following end of tax year |
| Capital Gains Tax | 31st January following end of tax year / Within 60 days if UK residential property |
| Inheritance Tax - Death | Within six months after the end of the month of death |
| Inheritance Tax - Lifetime Transfer | Within six months after the end of the month of transfer |
| Corporation Tax - Profits up to £1.5m | 9 months & 1 day after end of accounting period |
| Corporation Tax - Profits between £1.5m and £20m | 14th day of months 7, 10, 13 & 16 after start of a 12-month accounting period |
| Corporation Tax - Profits over £20m | 14th day of months 3, 6, 9 & 12 of a 12-month accounting period |
Stamp Duty Land Tax, Land & Buildings Transaction Tax & Land Transaction Tax
For more information, including bands & rates, please visit the respective government webpage:
https://www.gov.uk/stamp-duty-land-tax
https://revenue.scot/taxes/land-buildings-transaction-tax
https://www.gov.wales/land-transaction-tax-introduction