The UK tax rates 2026/27 apply from 6 April 2026, marking the start of the new UK tax year.
Frozen thresholds and changing allowances can affect how much tax you pay, even if headline tax rates remain the same.
Understanding the main tax thresholds and allowances helps you plan income with confidence and avoid unexpected tax later in the year.
To help you keep track, David Howard has produced a 2026/27 tax card summarising the key thresholds and allowances across the tax system.
Key tax changes for 2026/27
Several thresholds and allowances stay frozen during the 2026/27 tax year. Alongside frozen thresholds, a number of policy changes affect dividends, reporting requirements and pensions.
Income tax thresholds
The personal allowance stays at £12,570 and the higher rate threshold stays at £50,270 in England, Wales and Northern Ireland. Thresholds stay frozen until 2030/31, which means rising salaries can push more income into higher tax bands.
Dividend tax
Dividend tax rates increase to 10.75 percent for basic rate taxpayers and 35.75 percent for higher rate taxpayers. The additional rate stays at 39.35 percent and the dividend allowance stays at £500.
Making Tax Digital for income tax
Self-employed individuals and landlords with qualifying income above £50,000 must submit quarterly digital updates to HMRC using approved software.
Capital gains tax
The rate for gains qualifying for business asset disposal relief increases from 14 percent to 18 percent. The annual CGT exemption stays at £3,000.
Inheritance tax relief
Changes to agricultural and business property relief introduce a combined £2,500,000 allowance for 100 percent relief, transferable between spouses and civil partners.
National Insurance contributions
Individuals working or living abroad will no longer be able to pay voluntary Class 2 NICs. Eligible individuals may pay Class 3 contributions instead, which cost significantly more.
State pension age
The transition to a State Pension age of 67 begins in April 2026. Individuals born between April 1960 and March 1961 will see a gradual increase in their pension age.
Download Tax Card 2026/27
Key UK tax rates, allowances and thresholds for the 2026/27 tax year. Includes:
- → Income tax bands and the personal allowance 2026/27
- → Income Tax rates
- → National insurance rates 2026/27 and thresholds & more
Key dates for the 2026/27 tax year
Several deadlines during the tax year affect Self Assessment taxpayers, employers and individuals with new income sources.
Keeping track of these dates helps avoid penalties and ensures tax reporting stays compliant.
6 April 2026
Start of the 2026/27 UK tax year. New National Minimum Wage rates and National Insurance changes apply.
6 April 2026
Making Tax Digital for Income Tax begins for self-employed individuals and landlords with annual income above £50,000.
5 July 2026
Final date to agree a PAYE Settlement Agreement (PSA) with HMRC for the 2025/26 tax year.
6 July 2026
Deadline for employers to submit P11D and P11D(b) forms for employee expenses and benefits for 2025/26.
31 July 2026
Deadline for the second payment on account for the 2025/26 Self Assessment tax bill.
5 October 2026
Deadline to notify HMRC of new income sources if a tax return has not been issued.
Different forms apply depending on the income type, including CWF1, SA1 or SA401.
31 October 2026
Deadline to submit a paper Self Assessment tax return for the 2025/26 tax year.
30 December 2026
Deadline to submit an online tax return if you want HMRC to collect the balancing payment through your tax code (for liabilities below £2,000).
31 January 2027
Deadline to submit the online Self Assessment tax return for 2025/26
6 April 2027
Making Tax Digital for Income Tax expands to self-employed individuals and landlords with income above £30,000.
6 April 2028
Making Tax Digital will apply to self-employed individuals and landlords with income above £20,000.
Need advice on the 2026/27 tax year?
Tax planning often involves more than reviewing headline rates.
Business structure, income mix and investment decisions all influence tax outcomes. Professional advice helps ensure planning aligns with current UK tax rates 2026/27 and relevant allowances.
David Howard supports individuals and businesses across areas such as:
- personal tax planning
- corporation tax advice
- tax planning for company directors
- landlord tax advice
- business tax strategy
If you would like guidance on tax planning for the new year, speak with our team.