For 2026/27 (6 April 2026 to 5 April 2027) the Personal Allowance stays at £12,570 and most thresholds are frozen, but business owners face real changes. Dividend tax rises to 10.75% and 35.75%, the s455 charge on director loans follows to 35.75%, Business Asset Disposal Relief rises to 18%, the main pool writing down allowance falls to 14%, and Making Tax Digital for Income Tax has started for qualifying income over £50,000. The approved mileage rate for cars rises to 55p.
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Figures checked on 6 October 2026 against GOV.UK. We update this page when rates change.
Every figure below links to the GOV.UK page or the legislation.gov.uk section it comes from. Where a figure could not be confirmed on an official source, we have left it out rather than estimate it. Rates are for England, Wales and Northern Ireland unless stated.
What changed on 6 April 2026?
- Dividend ordinary rate up from 8.75% to 10.75% and dividend upper rate up from 33.75% to 35.75%. The additional rate stays at 39.35%.
- The s455 tax charge on loans to participators in close companies follows the dividend upper rate, so loans made on or after 6 April 2026 are charged at 35.75%.
- Business Asset Disposal Relief and Investors’ Relief: Capital Gains Tax rate up from 14% to 18%.
- Main pool writing down allowance cut from 18% to 14% (from 1 April 2026 for Corporation Tax, 6 April 2026 for Income Tax).
- A new £2.5 million allowance for 100% Business Relief and Agricultural Relief on Inheritance Tax, with 50% relief above it.
- Making Tax Digital for Income Tax started for sole traders and landlords with qualifying income over £50,000 in 2024/25.
- Approved mileage rate for cars and vans up from 45p to 55p for the first 10,000 business miles.
- National Insurance Lower Earnings Limit up from £6,500 to £6,708 a year; Class 2 and Class 3 weekly rates up.
Two related changes came just before the tax year: a new 40% first year allowance for qualifying plant and machinery bought on or after 1 January 2026, and HMRC late payment interest of 7.75% from 9 January 2026. Separate property income rates of 22%, 42% and 47% are due from 6 April 2027.
What are the Income Tax rates and bands for 2026/27?
The Personal Allowance and the higher rate threshold are unchanged. If your adjusted net income is over £100,000, the Personal Allowance is reduced by £1 for every £2 above that level, so it is lost completely at £125,140. Our guide to Personal Allowance tapering works through the 60% effective rate band this creates.
| Item | 2025/26 | 2026/27 | Source |
|---|---|---|---|
| Personal Allowance | £12,570 | £12,570 | GOV.UK Income Tax rates and allowances |
| Income limit for Personal Allowance (taper starts) | £100,000 | £100,000 | GOV.UK Income Tax rates and allowances |
| Taper | £1 lost per £2 over £100,000; nil at £125,140 | £1 lost per £2 over £100,000; nil at £125,140 | GOV.UK Income Tax rates |
| Basic rate 20% | £12,571 to £50,270 | £12,571 to £50,270 | GOV.UK Income Tax rates |
| Higher rate 40% | £50,271 to £125,140 | £50,271 to £125,140 | GOV.UK Income Tax rates |
| Additional rate 45% | Over £125,140 | Over £125,140 | GOV.UK Income Tax rates |
| Basic rate band (taxable income after allowances) | £37,700 | £37,700 | GOV.UK Income Tax rates and allowances |
Scotland sets its own rates and bands on earned income, with six bands running from 19% to 48% for 2026/27. See GOV.UK Scottish Income Tax for the current Scottish bands.
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What are the dividend tax rates for 2026/27?
This is the change that affects most owner managed companies. The ordinary and upper rates each rise by 2 percentage points, set by section 8 of the Income Tax Act 2007 as amended by Finance Act 2026. The £500 allowance is unchanged. For worked salary and dividend examples, see our guide to the dividend allowance and tax rates.
| Item | 2025/26 | 2026/27 | Source |
|---|---|---|---|
| Dividend allowance | £500 | £500 | GOV.UK Income Tax rates and allowances |
| Dividend ordinary rate (basic rate band) | 8.75% | 10.75% | ITA 2007 s8 |
| Dividend upper rate (higher rate band) | 33.75% | 35.75% | ITA 2007 s8 |
| Dividend additional rate | 39.35% | 39.35% | ITA 2007 s8 |
What are the savings allowances for 2026/27?
The savings allowances are unchanged. Savings income rates rise by 2 points to 22%, 42% and 47% from 6 April 2027, according to the GOV.UK policy paper.
| Item | 2025/26 | 2026/27 | Source |
|---|---|---|---|
| Personal savings allowance, basic rate taxpayer | £1,000 | £1,000 | ITA 2007 s12B |
| Personal savings allowance, higher rate taxpayer | £500 | £500 | ITA 2007 s12B |
| Personal savings allowance, additional rate taxpayer | £0 | £0 | GOV.UK tax free savings interest |
| Starting rate for savings (0%) | Up to £5,000 | Up to £5,000 | GOV.UK Income Tax rates and allowances |
| Starting rate unavailable once other income reaches | £17,570 | £17,570 | GOV.UK tax free savings interest |
Are there separate tax rates for property income?
Not yet. In 2026/27 rental profits are taxed at the normal 20%, 40% and 45% rates. From 6 April 2027 property income will have its own rates, and allowances and reliefs will be set against property, savings and dividend income only after other income.
| Item | 2026/27 | From 6 April 2027 (2027/28) | Source |
|---|---|---|---|
| Property basic rate | 20% | 22% | GOV.UK policy paper |
| Property higher rate | 40% | 42% | GOV.UK policy paper |
| Property additional rate | 45% | 47% | GOV.UK policy paper |
What are the National Insurance rates and thresholds for 2026/27?
Employee and employer rates are unchanged. The Lower Earnings Limit rises to £129 a week. The employer secondary threshold stays at £5,000 and the Employment Allowance at £10,500.
| Item | 2025/26 | 2026/27 | Source |
|---|---|---|---|
| Lower Earnings Limit | £125 a week (£6,500 a year) | £129 a week (£6,708 a year) | GOV.UK NICs rates and allowances |
| Primary Threshold (employee) | £242 a week (£12,570 a year) | £242 a week (£12,570 a year) | GOV.UK employer rates 2026 to 2027 |
| Upper Earnings Limit | £967 a week (£50,270 a year) | £967 a week (£50,270 a year) | GOV.UK employer rates 2026 to 2027 |
| Employee Class 1 rate, Primary Threshold to UEL | 8% | 8% | GOV.UK NICs rates and allowances |
| Employee Class 1 rate above UEL | 2% | 2% | GOV.UK employer rates 2026 to 2027 |
| Secondary Threshold (employer) | £96 a week (£5,000 a year) | £96 a week (£5,000 a year) | GOV.UK employer rates 2026 to 2027 |
| Employer Class 1 rate | 15% | 15% | GOV.UK NICs rates and allowances |
| Class 1A on benefits in kind | 15% | 15% | GOV.UK employer rates 2026 to 2027 |
| Employment Allowance | £10,500 | £10,500 | 2025 to 2026; 2026 to 2027 |
| Class 4 main rate (£12,570 to £50,270 of profits) | 6% | 6% | GOV.UK self employed NI rates |
| Class 4 rate above £50,270 | 2% | 2% | GOV.UK self employed NI rates |
| Small Profits Threshold | £6,845 | £7,105 | GOV.UK NICs rates and allowances |
| Voluntary Class 2 (weekly) | £3.50 | £3.65 | GOV.UK NICs rates and allowances |
| Voluntary Class 3 (weekly) | £17.75 | £18.40 | GOV.UK NICs rates and allowances |
Class 2 is no longer a compulsory payment. If your profits are £7,105 or more, Class 2 is treated as paid to protect your National Insurance record. Below that level you pay nothing but can choose to pay voluntary Class 2.
What are the Capital Gains Tax rates for 2026/27?
Main Capital Gains Tax rates are unchanged at 18% and 24%. The big change for business owners selling a company or trade is the Business Asset Disposal Relief rate, which completes its phased rise from 10% to 18%. Our guides to Capital Gains Tax rates and Business Asset Disposal Relief explain the qualifying conditions.
| Item | 2025/26 | 2026/27 | Source |
|---|---|---|---|
| Annual exempt amount (individuals) | £3,000 | £3,000 | GOV.UK CGT rates and allowances |
| Rate within basic rate band | 18% | 18% | GOV.UK CGT rates and allowances |
| Rate above basic rate band | 24% | 24% | GOV.UK CGT rates and allowances |
| Trustees and personal representatives | 24% | 24% | GOV.UK CGT rates and allowances |
| Business Asset Disposal Relief and Investors’ Relief rate | 14% | 18% | GOV.UK BADR |
| BADR lifetime limit | £1 million | £1 million | HMRC manual CG63956 |
What are the Corporation Tax rates for 2026/27?
Corporation Tax runs on financial years from 1 April, so the 2025/26 column below is the year starting 1 April 2025 and the 2026/27 column is the year starting 1 April 2026. Rates and limits are unchanged. The s455 charge on an overdrawn director’s loan account is tied by law to the dividend upper rate for the tax year the loan is made, so it rises to 35.75% for loans made on or after 6 April 2026. The GOV.UK directors’ loans guidance still showed 33.75% when we checked; the statute and the HMRC policy paper are the authority. Our close company rules guide covers loans to participators in more detail.
| Item | FY 2025 (2025/26) | FY 2026 (2026/27) | Source |
|---|---|---|---|
| Main rate (profits over £250,000) | 25% | 25% | GOV.UK Corporation Tax rates |
| Small profits rate (profits up to £50,000) | 19% | 19% | GOV.UK Corporation Tax rates |
| Marginal relief lower limit | £50,000 | £50,000 | GOV.UK Corporation Tax rates |
| Marginal relief upper limit | £250,000 | £250,000 | GOV.UK Corporation Tax rates |
| Marginal relief standard fraction | 3/200 | 3/200 | GOV.UK Corporation Tax rates |
| s455 charge on loans to participators | 33.75% | 35.75% (loans made on or after 6 April 2026) | CTA 2010 s455; GOV.UK policy paper |
What is the VAT registration threshold for 2026/27?
VAT rates and thresholds are unchanged for 2026/27. If you use the Flat Rate Scheme and spend little on goods, check whether the limited cost business rate of 16.5% applies. Our guide to the VAT registration threshold explains how the rolling 12 month test works.
| Item | 2025/26 | 2026/27 | Source |
|---|---|---|---|
| Standard rate | 20% | 20% | GOV.UK VAT rates |
| Reduced rate | 5% | 5% | GOV.UK VAT rates |
| Registration threshold (rolling 12 months) | £90,000 | £90,000 | GOV.UK VAT thresholds |
| Deregistration threshold | £88,000 | £88,000 | GOV.UK VAT thresholds |
| Flat Rate Scheme limited cost business rate | 16.5% | 16.5% | GOV.UK Flat Rate Scheme |
What capital allowances can businesses claim in 2026/27?
The Annual Investment Allowance still gives 100% relief on up to £1 million a year of qualifying plant and machinery. Above that, the writing down allowance on the main pool falls from 18% to 14%, which slows relief on large or second hand purchases. The new 40% first year allowance helps here because, unlike full expensing, it is not limited to companies. It covers new and unused plant and machinery, but not cars. See our guide to the 40% first year allowance.
| Item | 2025/26 | 2026/27 | Source |
|---|---|---|---|
| Annual Investment Allowance | £1 million | £1 million | GOV.UK AIA |
| Main pool writing down allowance | 18% | 14% (from 1 April 2026 for Corporation Tax, 6 April 2026 for Income Tax) | GOV.UK rates and pools |
| Special rate pool writing down allowance | 6% | 6% | GOV.UK rates and pools |
| 40% first year allowance (new, unused, not cars) | Not available before 1 January 2026 | 40% for purchases on or after 1 January 2026 | GOV.UK 40% FYA |
| Full expensing (companies only, new and unused plant and machinery) | 100% | 100% | GOV.UK full expensing |
| 50% first year allowance (companies only) | 50% | 50% | GOV.UK full expensing |
What are the Inheritance Tax thresholds for 2026/27?
The nil rate band is fixed at £325,000 to 5 April 2031 and the residence nil rate band at £175,000 to 5 April 2030. From 6 April 2026, 100% Business Relief and Agricultural Relief is capped by a new allowance. The allowance was announced at £1 million in October 2024 and raised to £2.5 million on 23 December 2025; any unused part can pass to a surviving spouse or civil partner. Our Business Relief guide covers succession planning for family companies.
| Item | 2025/26 | 2026/27 | Source |
|---|---|---|---|
| Nil rate band | £325,000 | £325,000 | GOV.UK IHT thresholds |
| Residence nil rate band (maximum) | £175,000 | £175,000 | GOV.UK IHT thresholds |
| Standard rate | 40% | 40% | GOV.UK Inheritance Tax |
| 100% Business Relief and Agricultural Relief | Unlimited | £2.5 million allowance, then 50% relief | GOV.UK policy paper; IHTM25510 |
| Business Relief on shares not listed on a recognised exchange (such as AIM) | 100% | 50% | IHTM25510 |
What are the pension allowances for 2026/27?
| Item | 2025/26 | 2026/27 | Source |
|---|---|---|---|
| Annual allowance | £60,000 | £60,000 | GOV.UK pension schemes rates |
| Money purchase annual allowance | £10,000 | £10,000 | GOV.UK pension schemes rates |
| Taper: threshold income | £200,000 | £200,000 | GOV.UK pension schemes rates |
| Taper: adjusted income | £260,000 | £260,000 | GOV.UK pension schemes rates |
| Minimum tapered annual allowance | £10,000 | £10,000 | GOV.UK pension schemes rates |
| Lump sum allowance | £268,275 | £268,275 | GOV.UK pension schemes rates |
| Lump sum and death benefit allowance | £1,073,100 | £1,073,100 | GOV.UK pension schemes rates |
What are the approved mileage rates for 2026/27?
The car and van rate for the first 10,000 business miles rises for the first time since 2011. These are the tax free amounts an employer can pay for business use of an employee’s own vehicle.
| Item | 2025/26 | 2026/27 | Source |
|---|---|---|---|
| Cars and vans, first 10,000 business miles | 45p | 55p | GOV.UK mileage rates |
| Cars and vans, each mile over 10,000 | 25p | 25p | GOV.UK mileage rates |
| Motorcycles | 24p | 24p | GOV.UK mileage rates |
| Bicycles | 20p | 20p | GOV.UK mileage rates |
What interest does HMRC charge on late tax?
Late payment interest has been set at Bank of England base rate plus 4% since 6 April 2025. Repayment interest is base rate minus 1%, with a floor of 0.5%. Bank Rate was 3.75% when we checked, held at the September 2026 decision.
| Item | From 27 August 2025 | From 9 January 2026 (in force on 6 October 2026) | Source |
|---|---|---|---|
| Late payment interest (Income Tax, NICs, CGT, VAT) | 8.00% | 7.75% | GOV.UK HMRC interest rates |
| Repayment interest (Income Tax, NICs, CGT, VAT) | 3.00% | 2.75% | GOV.UK HMRC interest rates |
| Corporation Tax pay and file, late payment | 8.00% | 7.75% | GOV.UK HMRC interest rates |
What are the key tax deadlines for 2026/27?
Self Assessment dates in the 2025/26 column relate to the 2025/26 return, which falls due during the current tax year. Dates in the 2026/27 column relate to the 2026/27 tax year itself. Our Self Assessment deadlines guide sets out the penalties for missing them.
| Item | 2025/26 | 2026/27 | Source |
|---|---|---|---|
| Register for Self Assessment | 5 October 2026 | 5 October 2027 | GOV.UK register |
| Paper tax return | 31 October 2026 | 31 October 2027 | GOV.UK SA deadlines |
| Online tax return and balancing payment | 31 January 2027 | 31 January 2028 | GOV.UK SA deadlines |
| Payments on account | 31 January 2026 and 31 July 2026 | 31 January 2027 and 31 July 2027 | GOV.UK payments on account |
| P11D and P11D(b) | 6 July 2026 | 6 July 2027 | GOV.UK expenses and benefits |
| Class 1A payment | 22 July 2026 (19 July by cheque) | 22 July 2027 (19 July by cheque) | GOV.UK expenses and benefits |
| Corporation Tax payment (profits up to £1.5 million) | 9 months and 1 day after the end of the accounting period | GOV.UK pay Corporation Tax | |
| Company Tax Return (CT600) | 12 months after the end of the accounting period | GOV.UK Company Tax Returns | |
| Confirmation statement | At least every 12 months, filed within 14 days of the end of the review period | GOV.UK confirmation statement | |
| VAT return and payment | 1 calendar month and 7 days after the end of the VAT period | GOV.UK submit a VAT return | |
When does Making Tax Digital for Income Tax apply?
HMRC uses your qualifying income from an earlier tax year to decide your start date, and checks it against your Self Assessment return each year. Quarterly updates are due on 7 August, 7 November, 7 February and 7 May. Our Making Tax Digital for Income Tax guide covers software and sign up.
| Item | Qualifying income measured in | Start date | Source |
|---|---|---|---|
| Qualifying income over £50,000 | 2024/25 | 6 April 2026 | GOV.UK MTD for Income Tax |
| Qualifying income over £30,000 | 2025/26 | 6 April 2027 | GOV.UK MTD for Income Tax |
| Qualifying income over £20,000 | 2026/27 | 6 April 2028 | GOV.UK MTD for Income Tax |
| Quarterly update deadlines | 7 August, 7 November, 7 February, 7 May | GOV.UK quarterly updates | |
How to cite this page
Suggested citation: Solar Protect, “UK Tax Rates, Thresholds and Deadlines 2026/27”, solarinsurance.co.uk/uk-tax-rates-thresholds-2026-27/, updated 6 October 2026.
What happens if HMRC opens an enquiry into your 2026/27 figures?
Higher dividend rates, the new s455 rate, BADR at 18% and quarterly Making Tax Digital reporting all give HMRC more figures to check. If HMRC opens an enquiry, your accountant’s time to respond is usually billed on top of their normal fee. Solar Protect tax investigation insurance covers up to £100,000 of accountant’s fees for dealing with HMRC enquiries, with no excess to pay. You can read how the cover works on our tax investigation insurance page. To see what cover would cost for your business, you can get a quote from Solar Protect online.
Related guides: UK tax deadlines calendar, HMRC penalties table.
Related questions: Dividend tax rates 2026/27, Inheritance tax thresholds 2026/27.
Compiled by Christine Anderson, Broker, Solar Protect. Last reviewed 6 October 2026. Figures are taken from GOV.UK and legislation.gov.uk as linked on this page; this page is general information, not personalised tax or financial advice.