A summary of key tax rates and allowances for 2027-28 and 2026-27.
This is a guide for subscribers.
Income Tax
Income Tax
| Personal allowances | 2027-28 | 2026-27 |
| Personal Allowance (PA) | £12,570 | £12,570 |
| PA restricted by £1 for every £2 of adjusted net income over | £100,000 | £100,000 |
| Transferable tax allowance for married couples and civil partners | £1,260 | £1,260 |
| Blind Person's Allowance | £3,370 | £3,250 |
| Married Couples' Allowance (at least one born pre-6 April 1935): Maximum (relief given at 10%) Minimum (relief given at 10%) Income limit |
£12,110 £4,690 £40,600 |
£11,700 £4,530 £39,200 |
| Other allowances | 2027-28 | 2026-27 |
| Personal Savings Allowance: Basic rate taxpayers Higher-rate taxpayers Additional rate taxpayers |
£1,000 £500 £0 |
£1,000 £500 £0 |
| Starting rate band for savings Savings starting rate: 0% Reduces by £1 for every £1 of non-savings income > PA |
£5,000 | £5,000 |
| Dividend Allowance | £500 | £500 |
| Rent-a-room Relief amount | £7,500 | £7,500 |
| Trading Allowance | £3,000 | £1,000 |
| Property Allowance | £1,000 | £1,000 |
| Qualifying Care Relief Annual fixed amount Weekly amount (children under 11 years) Weekly amount (children 11 years or older) Weekly amount (adults) |
£21,160 £455 £535 £535 |
£20,440 £435 £515 £515 |
| Income Tax bands and rates* | 2027-28 | 2026-27 |
| Basic rate band: Savings Non-savings Property Dividends Gift Aid and pension contributions can extend basic rate band |
£37,700 24% 20% 24% 10.75% |
£37,700 20% 20% 20% 10.75% |
| Higher rate band: Savings Non-savings Property Dividends |
£37,701 - £125,140 44% 40% 44% 35.75% |
£37,701 - £125,140 40% 40% 40% 35.75% |
| Additional rate band: Savings Non-savings Property Dividends |
£125,140+ 49% 45% 49% 39.35% |
£125,140+ 45% 45% 45% 39.35% |
| Rates applicable to trusts (accumulated and discretionary income): Savings Non-savings Property Dividends Trusts (other) Dividend ordinary rate Default basic rate Property basic rate Savings basic rate |
49% 45% 49% 39.35% 10.75% 20% 24% 24% |
45% 45% 45% 39.35% 10.75% 20% 20% 20% |
| Scottish taxpayers | 2027-28 | 2026-27 |
| Starter rate band: Non-dividend, non-savings income |
TBC TBC |
£0 - £3,967 19% |
| Basic rate band: Non-dividend, non-savings income |
TBC TBC |
£3,968 - £ 16,956 20% |
| Intermediate rate band: Non-dividend, non-savings income |
TBC TBC |
£16,957 - £31,092 21% |
| Higher rate band: Non-dividend, non-savings income |
TBC TBC |
£31,093 - £62,430 42% |
| Advanced rate band: Non-dividend, non-savings income |
TBC TBC |
£62,431 - £125,140 45% |
| Top rate band: Non-dividend, non-savings income |
TBC TBC |
Over £125,140 48% |
| Temporary Repatriation Facility | 2027-28 | 2026-27 |
| Rate of designated Foreign Income and Gains (FIG) | 15% | 12% |
| Child benefit | 2027-28 | 2026-27 |
| One child (per week) | £28.00 | £27.05 |
| Additional children (per week) | £18.55 | £17.90 |
| High-Income Child Benefit Charge: 1% for every £200 of income over: | £60,000 | £60,000 |
| Child benefit fully repayable if income over | £80,000 | £80,000 |
| Guardian's allowance | ||
| Per week | £23.75 | £22.95 |
Savings & investments
Savings & investments
| Individual Savings Accounts (ISAs) | 2027-28 | 2026-27 |
| ISA annual limit (cash and shares combined) | £20,000 | £20,000 |
| Lifetime ISA annual limit | £4,000 | £4,000 |
| Lifetime ISA withdrawal charge for purchases of properties above the lifetime ISA property cap of £450,000 (before 28 October 2026) | N/A | 25% |
| Lifetime ISA withdrawal charge for purchases of properties above the lifetime ISA property cap of £450,000 (from 29 October 2026) | 20% | 20% |
| Lifetime ISA withdrawal charge for other unauthorised withdrawals | 25% | 25% |
| Help to buy ISA limit per month (closed to new accounts November 2019) | £200 | £200 |
| Junior ISA/Child Trust Fund annual limit | £9,000 | £9,000 |
| Venture capital | 2027-28 | 2026-27 |
| Maximum individual investment: Enterprise Investment Scheme (EIS) EIS, where amounts over £1m invested in 'knowledge-intensive' companies Seed EIS (SEIS) Venture Capital Trust (VCT) |
£1,000,000 £2,000,000 £200,000 £200,000 |
£1,000,000 £2,000,000 £200,000 £200,000 |
| Maximum Income Tax reduction: EIS SEIS VCT |
30% 50% 20% |
30% 50% 20% |
| Pensions | 2027-28 | 2026-27 |
| Annual Allowance limit | £60,000 | £60,000 |
| Tapered Annual Allowance (Annual Allowance reduced by £1 for every £2 excess when an individual has ‘adjusted income’ over this amount, provided the ‘threshold income’ test is met) Threshold income Minimum tapered Annual Allowance |
£260,000 £200,000 £10,000 |
£260,000 £200,000 £10,000 |
| Pensions Tax Allowance: Eligibility threshold below which full PTA applies Threshold at which full PTA is removed Reduces by £1 for every £3 of income > eligiblity threshold |
£13,037 £13,319 |
N/A N/A |
| Maximum gross tax-relieved contributions with no relevant earnings | £3,600 | £3,600 |
| Money Purchase Annual Allowance | £10,000 | £10,000 |
| Lump Sum and Death Benefit Allowance | £1,073,100 | £1,073,100 |
| Lump Sum Allowance | £268,275 | £268,275 |
| Overseas Transfer Allowance | £1,073,100 | £1,073,100 |
CGT
Capital Gains Tax (CGT)
| Exemptions | 2027-28 | 2026-27 |
| Annual exemption for individuals, estates etc | £3,000 | £3,000 |
| Annual exemption for trusts generally | £1,500 | £1,500 |
| Chattels max gain 5/3rds x proceeds less exempt amount of: | £6,000 | £6,000 |
| Rates | 2027-28 | 2026-27 |
| Individuals: Basic rate Higher rate Basic rate Residential property gains Higher rate residential property gains |
18% 24% 18% 24% |
18% 24% 18% 24% |
| Trusts and personal representatives | 24% | 24% |
| Companies | See Corporation Tax | See Corporation Tax |
| Reliefs | 2027-28 | 2026-27 |
| Business Asset Disposal Relief (BADR): lifetime limit BADR: rate of tax on qualifying gains |
£500,000 18% |
£1,000,000 18% |
| Founders' Relief: lifetime limit up to Founders' Relief: rate of tax on qualifying gains |
£10,000,000 10% |
N/A N/A |
| Investors' Relief: lifetime limit Investors' Relief: rate of tax on qualifying gains |
£1,000,000 18% |
£1,000,000 18% |
| Temporary Repatriation Facility | 2027-28 | 2026-27 |
| Rate of designated Foreign Income and Gains (FIG) | 15% | 12% |
IHT
Inheritance Tax (IHT)
| Exemptions and nil rates | 2027-28 | 2026-27 |
| Nil Rate Band | £325,000 | £325,000 |
| Residence Nil Rate Band Tapered for estates exceeding |
£175,000 £2,000,000 |
£175,000 £2,000,000 |
| Maximum at nil rate, including maximum nil rate band transfers from spouse/civil partner | £1,000,000 | £1,000,000 |
| Agricultural Property Relief and Business Property Relief 100% allowance | £2,500,000 | £2,500,000 |
| Rates | 2027-28 | 2026-27 |
| Chargeable lifetime transfers | 20% | 20% |
| Transfers on, or within seven years of, death | 40% | 40% |
| Transfers on death, where 10% or more is left to charity | 36% | 36% |
| Taper relief on IHT payable for gifts made within seven years of death 0 - < 3 years 3 - < 4 years 4 - < 5 years 5 - < 6years 6 - < 7 years More than 7 years |
0% 20% 40% 60% 80% Exempt |
0% 20% 40% 60% 80% Exempt |
| Exemptions and reliefs | 2027-28 | 2026-27 |
| Gifts to long-term UK resident spouse (or non-long-term UK resident with election) | Unlimited | Unlimited |
| Gifts to non-long-term UK resident spouse | £325,000 | £325,000 |
| Annual exemption (per donor): can be carried forward one year | £3,000 | £3,000 |
| Small gifts exemption (per donee) | £250 | £250 |
| Wedding gift from parent | £5,000 | £5,000 |
| Wedding gift from grandparent | £2,500 | £2,500 |
| Wedding gift from others | £1,000 | £1,000 |
| Regular Gifts out of income | Unlimited | Unlimited |
| Gifts to charities | Unlimited | Unlimited |
| Business Property Relief Controlling interest in listed company Personal assets used by partnership or company you control Interest in a trading business Shares in an unquoted trading company AIM shares |
50% relief 50% relief 100% relief* 100% relief* 50% relief *subject to £2.5m 100% allowance, with 50% relief thereafter |
50% relief 50% relief 100% relief* 100% relief* 50% relief *subject to £2.5m 100% allowance, with 50% relief thereafter |
| Agricultural Property Relief (applicable to agricultural value) | 100% relief* generally 50% relief in some cases *subject to £2.5m 100% allowance, with 50% relief thereafter |
100% relief* generally 50% relief in some cases *subject to £2.5m 100% allowance, with 50% relief thereafter |
VAT
VAT
| 2027-28 | 2026-27 | |
| Registration threshold (taxable turnover, i.e. excl. exempt) | £90,000 | £90,000 |
| Deregistration threshold | £88,000 | £88,000 |
| Rates: Standard Reduced Zero |
20% 5% 0% |
20% 5% 0% |
| Fractions: Standard Reduced |
1 / 6 1 / 21 |
1 / 6 1 / 21 |
| Cash accounting & Annual accounting: Taxable turnover upper limit for joining Taxable turnover exit threshold |
£1,350,000 £1,600,000 |
£1,350,000 £1,600,000 |
| Flat Rate Scheme: Taxable turnover upper limit for joining Anniversary test: leave if total income (incl. exempt) greater than stay if total income in next 12 months will be less than |
£150,000 £230,000 £191,500 |
£150,000 £230,000 £191,500 |
| Flat Rate Scheme Limited Cost Trader (LCT): LCT applies if spend on relevant goods in the quarter is:
LCT rate (reduce by 1% first 12 months of registration) |
16.5% |
16.5% |
| Partial exemption de-minimis Recover VAT if input VAT attributable to exempt supplies is: on average less than and, as a proportion of total input VAT is no more than |
£625 per month 50% |
£625 per month 50% |
Stamp Duties & ATED
Stamp Duties & ATED
| Stamp Duty and Stamp Duty Reserve Tax | 2027-28 | 2026-27 |
| Subscription to newly issued shares | 0% | 0% |
| Most other stocks and marketable securities with consideration over £1,000 (subject to variation, including for shares newly listed on a UK-regulated market) | 0.5% | 0.5% |
| Stamp Duty Land Tax: residential property | 2027-28 | 2026-27 |
| First-time buyers where cost of property less than: £0 - £300,000 £300,001 - £500,000 If the cost is more than £500,000, the standard rates apply. |
£500,000 0% 5% |
£500,000 0% 5% |
| Standard rates: £0 - £125,000 £125,001 - £250,000 £250,001 - £925,000 £925,001 - £1,500,000 £1,500,001+ |
0% 2% 5% 10% 12% |
0% 2% 5% 10% 12% |
| Supplement for second home/buy-to-let and companies Not applicable if consideration less than |
5% £40,000 |
5% £40,000 |
|
Higher rate for non-natural person with non-qualifying activity (applies to companies, partnerships with a company partner and collective investment schemes) |
17% if > £500,000 |
17% if > £500,000 |
| Leases (net present value of rent): £0 - £125,000 Over £125,001 |
0% 1% |
0% 1% |
| Surcharge for non-UK residents (£40,000+) | 2% | 2% |
| Stamp Duty Land Tax: non-residential or mixed property | 2027-28 | 2026-27 |
| Standard rates: £0 - £150,000 £150,001 - £250,000 £250,001+ |
0% 2% 5% |
0% 2% 5% |
| Leases (net present value of rent): £0 - £150,000 £150,001 - £5,000,000 £5,000,000+ |
0% 1% 2% |
0% 1% 2% |
| Qualifying purchases in Freeport tax sites and Investment Zones are eligible for full relief from SDLT. | ||
| Scotland - Land and Buildings Transaction Tax: non-residential or mixed property | 2027-28 | 2026-27 |
| Standard rates: £0 - £150,000 £150,001 - £250,000 £250,001+ |
TBC TBC TBC |
0% 1% 5% |
| Scotland - Land and Buildings Transaction Tax: residential property | 2027-28 | 2026-27 |
| Standard rates: £0 - £145,000 £145,001 - £250,000 £250,001 - £325,000 £325,001 - £750,000 £750,001+ |
|
0% 2% 5% 10% 12% |
| First-time buyers | TBC | 0% on the first £175,000 |
| Wales - Land Transaction Tax: non-residential or mixed property | 2027-28 | 2026-27 |
| Standard rates: £0 - £225,000 £225,001 - £250,000 £250,001 - £1,000,000 £1,000,001+ |
|
0% 1% 5% 6% |
| Wales - Land Transaction Tax: residential property | 2027-28 | 2026-27 |
| Standard rates: £0 - £225,000 £225,001 - £400,000 £400,001 - £750,000 £750,001 - £1,500,000 £1,500,001+ |
TBC TBC TBC TBC TBC |
0% 6% 7.5% 10% 12% |
| Annual Tax on Enveloped Dwellings | 2027-28 | 2026-27 |
| Applies if market value on valuation date exceeds | £500,000 | £500,000 |
| Valuation dates | 1 April 2022 or the date the property was acquired (if later) | |
| Annual charge if taxable value is £500,001 - £1,000,000 | £4,750 | £4,600 |
| £1,000,001 - £2,000,000 | £9,750 | £9,450 |
| £2,000,001 - £5,000,000 | £33,300 | £32,200 |
| £5,000,001 - £10,000,000 | £78,050 | £75,450 |
| £10,000,001 - £20,000,000 | £156,750 | £151,450 |
| £20,000,001 + | £314,050 | £303,450 |
Corporation Tax
Corporation Tax
| 2027-28 | 2026-27 | |
| Small profits rate (profits < lower limit below) | 19% | 19% |
| Main rate (profits > upper limit below) | 25% | 25% |
| Marginal relief lower limit Marginal relief upper limit Reduced for short accounting periods and associated companies |
£50,000 £250,000 |
£50,000 £250,000 |
| Marginal relief standard fraction | 3/200 | 3/200 |
| Effective marginal rate | 26.5% | 26.5% |
| S.455 tax on loans to participators | 35.75% | 35.75% |
| Patent Box and Research and Development (R&D) | 2027-28 | 2026-27 |
| Patent Box effective rate | 10% | 10% |
| R&D capital expenditure relief | 100% | 100% |
| R&D merged scheme expenditure credit Notional tax rate for loss-making companies |
20% 19% |
20% 19% |
| R&D intensive SME deduction rate R&D intensive SME payable credit (Where qualifying R&D expenditure is >30% of total expenditure) |
186% 14.5% |
186% 14.5% |
| Other reliefs | 2027-28 | 2026-27 |
| Film Tax Relief | Ceased | 25% |
| Audio-Visual and Video Game Expenditure Credit | 34%, 39% or 53% | 34%, 39% or 53% |
| High-end TV Tax Relief | Ceased | 25% or 34% |
| Video games Tax Relief | Ceased | 25% or 34% |
| Animation Tax Relief | Ceased | 25% or 39% |
| Children’s TV Tax Relief | Ceased | 25% or 39% |
|
Note: Film Tax Relief will sunset from 1 April 2027. Companies can claim the Audio-Visual Expenditure Credit (AVEC) instead. The Video Games Expenditure Credit has a rate of 34%. Under the AVEC, film and high-end TV have a rate of 34% and children’s TV and animated productions have a rate of 39%. From 1 April 2024, low-budget films are eligible for a rate of 53%. From 1 January 2025, visual effects expenditure on films and high-end TV programmes is eligible for a rate of 39%. |
||
| Cultural reliefs | ||
| Museums and Galleries Exhibition Tax Relief | 40% or 45% | 40% or 45% |
| Theatre Tax Relief | 40% or 45% | 40% or 45% |
| Orchestra Tax Relief | 45% | 45% |
Capital Allowances
Capital Allowances
| 2027-28 | 2026-27 | |
| Annual Investment Allowance (100%) up to | £1,000,000 | £1,000,000 |
| Plant and machinery general pool Writing Down Allowance (WDA) | 12% | 14% |
| Special rate WDA (e.g. integral features and certain long-life assets) | 6% | 6% |
| Full expensing (main rate assets, companies only) | 100% | 100% |
| Full expensing (special rate assets, companies only) | 50% | 50% |
| Small pool WDA where balance <£1,000 | 100% | 100% |
| First Year Allowance for electric charge-points | 100% | 100% |
| First Year Allowance for new plant and machinery used in Freeports | 100% | 100% |
| First Year Allowance for new plant and machinery used in Investment Zones | 100% | 100% |
| First Year Allowance for main rate expenditure | 50% | 40% (Up to 31 December 2026) 50% (From 1 January 2027) |
| Structures and Buildings Allowance (SBA) | 3% | 3% |
| Enhanced SBA for Freeports | 10% | 10% |
| Enhanced SBA for Investment Zones | 10% | 10% |
| Capital allowance: cars | 2027-28 | 2026-27 |
| New and unused with CO2 emissions of 0g/km (First Year Allowance) | 100% | 100% |
| New or second-hand with CO2 emissions of up to 50g/km (WDA) | 12% | 14% |
| New or second-hand with CO2 emissions above 50g/km (WDA) | 6% | 6% |
| Include cars used by sole traders or partnerships with private use in a single asset pool | ||
National Insurance
National Insurance
Class 1 (employers & employees)
Thresholds
|
2027-28 |
2026-27 |
|||||
|
Weekly |
Monthly |
Yearly |
Weekly |
Monthly |
Yearly |
|
| Lower Earnings Limit (LEL) | £133 | £576 | £6,916 | £129 | £559 | £6,708 |
| Primary Threshold (PT) | £242 | £1,048 | £12,570 | £242 | £1,048 | £12,570 |
| Upper Earnings Limit (UEL) | £967 | £4,189 | £50,270 | £967 | £4,189 | £50,270 |
| Secondary Threshold (ST) | £96 | £417 | £5,000 | £96 | £417 | £5,000 |
| Freeport Upper Secondary Threshold | £481 | £2,083 | £25,000 | £481 | £2,083 | £25,000 |
| Upper Secondary Threshold (under 21) | £967 | £4,189 | £50,270 | £967 | £4,189 | £50,270 |
| Apprentice (under 25) Upper Secondary Threshold | £967 | £4,189 | £50,270 | £967 | £4,189 | £50,270 |
| Veterans' Upper Secondary Threshold | £967 | £4,189 | £50,270 | £967 | £4,189 | £50,270 |
| Investment Zone Upper Secondary Threshold | £481 | £2,083 | £25,000 | £481 | £2,083 | £25,000 |
Rates
|
2027-28 |
2026-27 |
|
| Employees' main rate (PT to UEL) | 8% | 8% |
| Employees' lower rate (above UEL) | 2% | 2% |
| Employers' rate* | 15% | 15% |
| Married women’s reduced rate between PT and UEL | 1.85% | 1.85% |
| Married women’s rate above UEL | 2% | 2% |
*No employer's NIC on employees under 21, apprentices under 25, Freeport and Investment Zone employees and veterans in the first year, up to relevant USTs.
Employment Allowance
|
2027-28 |
2026-27 |
|
| Employment Allowance | £10,500 | £10,500 |
Classes 1A and 1B (employers)
| 2027-28 | 2026-27 | |
| Class 1A | 15% | 15% |
| Class 1B | 15% | 15% |
Classes 2 and 4 (self-employed)
|
2027-28 |
2026-27 |
|
| Class 2 | ||
| Flat rate per week (voluntary) | £3.80 | £3.65 |
| Share fishermen per week | £4.45 | £4.30 |
| Volunteer development workers per week | £6.65 | £6.45 |
| Small Profits Threshold | £7,355 | £7,105 |
| Class 4 | ||
| Lower Profits Limit | £12,570 | £12,570 |
| Upper Profits Limit | £50,270 | £50,270 |
| Rate: Lower Profits Limit to Upper Profits Limit | 6% | 6% |
| Rate: above Upper Profits Limit | 2% | 2% |
Class 3 (voluntary)
|
2027-28 |
2026-27 |
|
| Flat rate per week | £19.05 | £18.40 |
NMW/NLW
| National Living Wage (NLW) and National Minimum Wage (NMW) rates | From 1 April 2027 | From 1 April 2026 |
| National Living Wage: Age 21+ |
£13.21 | £12.71 |
| National Minimum Wage: Age (years): 18-20 (Also for workers aged 21 years and above, starting a new job with an employer and doing accredited training (a course approved by the UK government to obtain a vocational qualification)) 16-17 |
£11.27 £8.31 |
£10.85 £8.00 |
| Apprentices U/19 An apprentice rate for apprentices who are under 19 or, 19 and over their first year of apprenticeship. All other apprentices are entitled to the NMW for their age band. |
£8.31 | £8.00 |
| Accommodation offset rate: per day | £11.53 | £11.10 |
Company Car/Van Benefits
| Company Car Benefit | 2027-28 | 2026-27 |
| Cars with CO2 emissions of: 0 |
5% |
4% |
| 1-50 and with electric range of: 130+ 70 - 129 40 - 69 30 -39 < 30 |
5% 8% 11% 15% 17% |
4% 7% 10% 14% 16% |
| 51 - 54 | 18% | 17% |
| 55 - 59 | 19% | 18% |
| 60 - 64 | 20% | 19% |
| 65 - 69 | 21% | 20% |
| 70 - 74 | 21% | 21% |
| 75+ | Lower of: - 21% + 1 % for each 5g/km over 75g/km - 37% |
|
| Diesel cars: add 4% up to a maximum of 37%. | ||
| Car Fuel Benefit | 2027-28 | 2026-27 |
| Fixed amount multiplied by appropriate percentage for car benefit | £30,200 | £29,200 |
| Van Benefit | 2027-28 | 2026-27 |
| Zero emission: chargeable amount | Nil | Nil |
| Other vans: chargeable amount | £4,310 | £4,170 |
| Fuel: chargeable amount | £825 | £798 |
Interest
Interest
Official Rate of Interest (ORI)
|
2027-28 |
2026-27 |
|
| Actual and average rate (subject to in-year review/change) | 3.75% | 3.75% |
Interest on late and early payments
On main taxes, excluding quarterly instalment payments for Corporation Tax:
|
From |
Late payment |
Repayment |
|
9 January 2026 |
7.75% |
2.75% |
| 27 August 2025 | 8.00% |
3.00% |
|
28 May 2025 |
8.25% |
3.25% |
|
6 April 2025 |
8.50% |
3.50% |
Rates applying to earlier periods can be found on HMRC's website.