UK Tax Rates & Allowances 2026-27
A complete reference of UK tax rates, thresholds and allowances for the 2026-27 tax year. Bookmark this page for quick access to Income Tax bands, Capital Gains Tax, Corporation Tax, Inheritance Tax and Stamp Duty Land Tax rates.
The UK tax year 2026-27 runs from 6 April 2026 to 5 April 2027. Below is a comprehensive summary of the key tax rates and allowances that apply to individuals, companies and trusts. These rates reflect all announced changes including the April 2026 reforms to Business Property Relief and the aligned Capital Gains Tax rates introduced in October 2025.
Key changes now in effect for 2026-27
- BADR rate rises to 18% from 6 April 2026 (up from 14%), with the £1m lifetime limit unchanged.
- BPR/APR £2.5m cap on 100% relief from 6 April 2026 — a 20% effective rate applies above the combined cap.
- CGT rates aligned at 18% / 24% since October 2025; Annual Exempt Amount holds at £3,000.
- SDLT additional dwelling surcharge remains at 5% following the April 2025 increase.
Understanding current tax rates is essential for effective tax planning. Whether you are planning a property purchase, disposing of business assets, structuring your estate or considering a corporate transaction, knowing the applicable rates allows you to make informed decisions and minimise your tax liability within the law. The rates below are the headline rates; specialist reliefs, exemptions and interactions between different taxes can significantly affect your effective rate. We recommend seeking professional advice before taking any significant tax-planning action.
Income Tax Bands (England, Wales & NI)
Income Tax rates remain unchanged for 2026-27. The Personal Allowance stays at £12,570 and the Additional Rate threshold at £125,140. Scottish income tax bands differ — see our Insights blog for Scottish rate details.
| Band | Rate | Threshold |
|---|---|---|
| Personal AllowanceReduced by £1 for every £2 earned above £100,000 | 0% | Up to £12,570 |
| Basic Rate | 20% | £12,571 – £50,270 |
| Higher Rate | 40% | £50,271 – £125,140 |
| Additional Rate | 45% | £125,140 + |
Capital Gains Tax (CGT)
From October 2025, CGT rates on most assets are aligned at 18% (basic rate) and 24% (higher/additional rate). The Annual Exempt Amount remains at £3,000. BADR (formerly Entrepreneurs' Relief) rises to 18% from April 2026. See our CGT advisory page for detailed mitigation strategies.
Lower-rate assets (basic rate taxpayers)
18%
Higher-rate assets (higher/additional rate taxpayers)
24%
Business Asset Disposal Relief (BADR, lifetime limit £1M)
10% (rising to 14% in 2025-26, 18% in 2026-27)
Annual Exempt Amount
£3,000 (individuals), £1,500 (trusts)
Inheritance Tax (IHT) Thresholds
The April 2026 reforms introduced a £2.5M combined cap on 100% Business Property Relief and Agricultural Property Relief, with a 20% effective rate above the cap. See our IHT planning page for detailed guidance.
| Nil-Rate Band (NRB) | £325,000 |
| Residence Nil-Rate Band (RNRB) | £175,000 |
| RNRB Taper Threshold | £2,000,000 (tapered by £1 for every £2 above) |
| Spouse / Civil Partner Exemption | Unlimited — fully exempt |
| Transferable NRB + RNRB | Up to £1,000,000 per surviving spouse (combined unused NRB + RNRB) |
| BPR/APR 100% Relief Cap (April 2026) | £2,500,000 combined (20% effective rate above) |
| Reduced Rate for Charitable Gifts (10%+) | 36% |
Stamp Duty Land Tax (SDLT) — Residential
The additional dwelling surcharge is 5% from April 2025. First-time buyer relief applies on properties up to £625,000. See our SDLT advisory page for reliefs including Multiple Dwellings Relief and mixed-use property rates.
Corporation Tax
Main Rate
25% (profits over £250,000)
Small Profits Rate
19% (profits up to £50,000)
Marginal relief applies between £50,000 and £250,000. The thresholds are reduced for associated companies and short accounting periods.
Need help applying these rates to your situation?
Tax rates are only the starting point. Effective tax planning requires understanding how reliefs, exemptions and interactions between taxes apply to your specific circumstances.
These rates are provided for general guidance only and reflect the position for the 2026-27 tax year as reviewed in August 2026. Tax legislation changes frequently and you should not act on this information without seeking professional advice specific to your circumstances. Newshams Tax Advisers accepts no liability for actions taken based on this summary alone.