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This is the complete reference guide to all major UK tax rates and allowances for the 2026/27 tax year (6 April 2026 to 5 April 2027). All figures verified from GOV.UK and official sources. 2026/27 — GOV.UK Verified Income Tax — England, Wales and Northern Ireland 2026/27| Band | Rate | Taxable Income | Annual Income (with PA) |
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| Personal Allowance | 0% | Up to £12,570 | Up to £12,570 | | Basic rate | 20% | £1–£37,700 | £12,571–£50,270 | | Higher rate | 40% | £37,701–£112,570 | £50,271–£125,140 | | Additional rate | 45% | Above £112,570 | Above £125,140 |
Personal Allowance taper: reduces by £1 for every £2 above £100,000 — fully withdrawn at £125,140. Allowances frozen until April 2031. Source: GOV.UK rates and thresholds for employers 2026 to 2027 (published 30 January 2026). National Insurance 2026/27| Class | Who Pays | Rate | Threshold |
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| Class 1 (Employee) | Employees | 8% (PT to UEL); 2% above UEL | PT £12,570/yr; UEL £50,270/yr | | Class 1 (Employer) | Employers | 15% | Secondary threshold £5,000/yr | | Class 4 (Self-employed) | Self-employed | 6% (PT to UEL); 2% above UEL | PT £12,570/yr; UEL £50,270/yr | | Class 2 | Self-employed (voluntary) | Flat rate contribution | Voluntary — protects State Pension entitlement | | Class 3 | Voluntary | Flat rate | For filling NI record gaps |
Source: GOV.UK Class 1 National Insurance thresholds 2026 to 2027. Employer NI rate rose to 15% from April 2025 and remains at 15% for 2026/27. Secondary threshold reduced to £5,000 from April 2025. Capital Gains Tax 2026/27| Asset / Relief | Basic Rate | Higher Rate | Annual Exempt Amount |
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| Shares, funds, crypto | 18% | 24% | £3,000 per individual | | Residential property (not main home) | 18% | 24% | £3,000 (+ 60-day reporting rule) | | Business Asset Disposal Relief (BADR) | 18% | 18% | First £1m qualifying gains | | Main residence | Exempt (PRR) | Exempt (PRR) | N/A — full exemption usually |
Inheritance Tax 2026/27| Threshold / Relief | Amount | Notes |
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| Nil-Rate Band (NRB) | £325,000 | Per person; frozen until April 2031 | | Residence Nil-Rate Band (RNRB) | £175,000 | Main home to direct descendants; tapers above £2m estate | | IHT rate | 40% | On estate above NRB | | Reduced rate (charitable) | 36% | If 10%+ of net estate to charity | | APR/BPR (100% relief cap) | £2.5m per person | From April 2026; 50% relief above cap |
Other Key Tax Rates and Allowances 2026/27| Tax/Allowance | Rate / Amount | Notes |
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| VAT standard rate | 20% | Most goods and services | | VAT reduced rate | 5% | Domestic energy, children's car seats etc. | | VAT registration threshold | £90,000 turnover | Must register if exceeding this in any 12-month period | | Corporation tax (profits over £250k) | 25% | Main rate unchanged | | Corporation tax (profits under £50k) | 19% | Small profits rate unchanged | | Pension annual allowance | £60,000 | Including employer contributions; tapers above £260,000 income | | ISA annual allowance | £20,000 | Unchanged for 2026/27 (Cash ISA reduced to £12,000 from 2027/28) | | Dividend allowance | £500 | First £500 of dividends tax-free | | Personal Savings Allowance | £1,000 (basic rate); £500 (higher rate) | Interest tax-free up to this amount | | Marriage Allowance | £1,260 transfer; £252 saving | Transfer unused PA to basic-rate partner | | Annual gift exemption (IHT) | £3,000/year | Can carry forward one year |
Stamp Duty Land Tax (England and Northern Ireland) 2026/27| Property Value Band | Standard Rate | First-Time Buyer Rate | Additional Home Surcharge |
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| £0–£125,000 | 0% | 0% | +3% | | £125,001–£250,000 | 2% | 0% (up to £300k for FTB) | 2% + 3% | | £250,001–£925,000 | 5% | 5% (above £300k) | 5% + 3% | | £925,001–£1,500,000 | 10% | 10% | 10% + 3% | | Above £1,500,000 | 12% | 12% | 12% + 3% |
KAELTRIPTON VERDICT All major UK tax rates for 2026/27 in one place: income tax 20%/40%/45% (PA £12,570 frozen); employee NI 8%/2%; CGT 18%/24% (AEA £3,000); IHT 40% (NRB £325,000); dividend tax 10.75%/35.75%; pension annual allowance £60,000. All thresholds frozen until April 2031 — rising wages mean more fiscal drag each year. All Rates Verified — GOV.UK 2026/27 Q: What are the UK income tax rates 2026/27? A: 20% basic (£12,571-£50,270), 40% higher (£50,271-£125,140), 45% additional (above £125,140). PA £12,570. Frozen until 2031. Q: What is the NI rate 2026/27? A: Employee: 8% (£12,570-£50,270), 2% above. Employer: 15% above £5,000. Self-employed Class 4: 6% (£12,570-£50,270), 2% above. Q: What is the VAT rate UK 2026? A: 20% standard. 5% reduced (domestic energy etc). 0% for food, children's clothing, books. Registration threshold £90,000. Q: What is the CGT allowance 2026/27? A: £3,000 annual exempt amount. Rates 18% basic, 24% higher. BADR 18% on first £1m qualifying gains. This article is for informational purposes only and does not constitute financial or tax advice. Always consult a qualified accountant or tax adviser for your personal circumstances. All rates and figures verified from GOV.UK and official sources, April 2026. |
