ATTIVO
Attivo’s ultimate tax factsheet (2026/27)
Tax rules can change from year to year
Keeping track of the latest tax allowances, rates and thresholds can help you make more informed decisions about your income, savings, investments, pensions and estate planning.
In this article, we’ve summarised some of the main UK tax allowances and rates for the 2026/27 tax year, as well as how we can support your tax planning needs at Attivo.
Here’s all you need to know about tax allowances and rates for 2026/27:
1. Income Tax allowances and rates
| UK Income Tax point | 2026/27 detail | What to note |
|---|---|---|
| Standard Personal Allowance | £12,570 | The amount of income most people can usually receive before paying Income Tax. |
| Personal Allowance taper | Reduced by £1 for every £2 of adjusted net income above £100,000 | The allowance is lost completely once income reaches £125,140. |
| UK Band | Taxable income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
| Scottish taxpayer point | What differs | What stays UK-wide |
|---|---|---|
| Income Tax bands | Scottish starter, basic, intermediate, higher, advanced and top rates may apply to non-savings, non-dividend income. | Savings and dividend income are taxed using UK-wide rules. |
| Scottish Income Tax band | Taxable income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Starter rate | £12,571 to £16,537 | 19% |
| Basic rate | £16,538 to £29,526 | 20% |
| Intermediate rate | £29,527 to £43,662 | 21% |
| Higher rate | £43,663 to £75,000 | 42% |
| Advanced rate | £75,001 to £125,140 | 45% |
| Top rate | Over £125,140 | 48% |
2. Savings and dividend allowances
| Allowance / rate | Who it applies to | 2026/27 amount or rate |
|---|---|---|
| Personal Savings Allowance | Basic rate taxpayers | Up to £1,000 savings interest tax-free |
| Personal Savings Allowance | Higher rate taxpayers | Up to £500 savings interest tax-free |
| Personal Savings Allowance | Additional rate taxpayers | No allowance |
| Starting rate for savings | Those with low taxable income | Up to £5,000 savings income may be tax-free |
| Dividend tax point | 2026/27 detail | Notes |
|---|---|---|
| Dividend allowance | £500 | Dividend income above this allowance is taxed according to your Income Tax band. |
| Basic rate dividend tax | 10.75% | Applies to dividend income above the allowance that falls within the basic rate tax band. |
| Higher rate dividend tax | 35.75% | Applies to dividend income above the allowance that falls within the higher rate tax band. |
| Additional rate dividend tax | 39.35% | Applies to dividend income above the allowance that falls within the additional rate tax band. |
3. ISA allowances
| ISA allowance / rule | 2026/27 detail | What to note |
|---|---|---|
| Adult ISA allowance | £20,000 | Can be split between eligible ISA types, subject to each account’s rules. Dividends received within an ISA are not subject to dividend tax. |
| Cash ISA | Part of the £20,000 allowance | Used for cash savings held within an ISA wrapper. |
| Stocks and shares ISA | Part of the £20,000 allowance | Used for eligible investments held within an ISA wrapper. |
| Innovative finance ISA | Part of the £20,000 allowance | Subject to the rules and risks of the account type. |
| Lifetime ISA | £4,000 annual payment limit | Counts towards the overall £20,000 ISA allowance. You can pay in up to £4,000 a year until age 50, but must make your first payment before age 40. |
| Upcoming ISA change | From April 2027 | Planning point |
|---|---|---|
| Cash ISA allowance | Due to reduce to £12,000 for those under age 65 | 2026/27 may be a useful year to review how you use tax allowances across cash savings and investments. |
| Overall ISA allowance | Expected to remain at £20,000 | Consider how the overall allowance is allocated between different ISA types. |
`
Smarter tax planning starts here
Download our free tax planning guide for high earners, and get guidance on:
- Protecting your personal allowance.
- Managing the 60% marginal tax trap.
- Maximising your ISAs for lifelong tax-free growth.
- Smart, high-impact pension strategies.
… and much more.
4. Capital Gains Tax allowance and rates
| Capital Gains Tax point | 2026/27 detail | What to note |
|---|---|---|
| Annual exempt amount | £3,000 | Applies to individuals, personal representatives and trustees for disabled people. |
| Most other trustees | £1,500 | Up to £1,500 usually applies. This allowance can be shared between qualifying trusts created by the same settlor, subject to a minimum allowance of £300 per trust. |
| When CGT may be due | On overall gains above the annual exempt amount | Allowable losses and relevant reliefs may reduce the taxable gain. |
| Taxpayer position | CGT rate from 6 April 2026 | Notes |
|---|---|---|
| Basic rate taxpayers | 18% or 24% | 18% may apply to gains within the basic rate band; 24% may apply above it. |
| Higher rate taxpayers | 24% | The rate can depend on taxable income and the size of the gain. |
| Additional rate taxpayers | 24% | The rate can depend on taxable income and the size of the gain. |
5. Pension allowances
| Pension allowance | 2026/27 amount | What to note |
|---|---|---|
| Standard pension annual allowance | £60,000 | The maximum pension savings you can usually make in a tax year without triggering an annual allowance charge. |
| Factors that may affect your position | Varies by circumstance | Earnings, employer contributions, unused allowances from previous years and defined benefit pension input may all be relevant. |
| Allowance rule | When it may apply | Potential allowance |
|---|---|---|
| Tapered annual allowance | Threshold income above £200,000 and adjusted income above £260,000 | May reduce to a minimum of £10,000 |
| Money Purchase Annual Allowance (MPAA) | If you have flexibly accessed defined contribution pension benefits | £10,000 |
| Pension tax relief point | Summary | Planning note |
|---|---|---|
| Contribution tax relief limit | Limited to the higher of 100% of UK taxable earnings or £3,600 gross. If you have no earnings, you can usually pay in up to £2,880 net, with basic rate tax relief added to make £3,600. | Subject to relevant allowances and scheme rules. |
| Advice point | Pension planning can be complex | Seek advice before making significant contributions or withdrawals. |
6. Inheritance Tax thresholds
| Inheritance Tax threshold | Amount | What to note |
|---|---|---|
| Nil-rate band | £325,000 | May be transferable between spouses and civil partners if unused. |
| Residence nil-rate band | Up to £175,000 | May apply when a qualifying residence is passed to direct descendants. Any unused residence nil-rate band may also be transferable between spouses and civil partners. The amount is capped at the value of the main residence. |
| Residence nil-rate band taper | Estates above £2 million | The residence nil-rate band may be reduced for larger estates. |
| Potential combined allowance for some couples | Up to £1 million | Depends on individual circumstances and available transferable allowances. |
| IHT point | Summary | Planning note |
|---|---|---|
| Standard IHT rate | Usually 40% | Charged on the value of an estate above available thresholds. |
| Exemptions and reliefs | May apply | Estate planning should be reviewed regularly, especially if assets, family circumstances or tax rules change. |
Cutting back taxes begins with proactive planning
Learn how careful use of ISAs, investments and pensions could help you structure your finances more tax-efficiently in this article.
7. National Insurance
| National Insurance type | Band | Rate |
|---|---|---|
| Class 1 National Insurance | Employee earnings between the primary threshold and upper earnings limit | Generally 8% |
| Class 1 National Insurance | Employee earnings above the upper earnings limit | Generally 2% |
| Class 4 National Insurance | Self-employed profits between the lower profits limit and upper profits limit | Generally 6% |
| Class 4 National Insurance | Self-employed profits above the upper profits limit | Generally 2% |
How to make the most of your tax allowances
| Planning area | Why it matters | What to review |
|---|---|---|
| Income | Income levels can affect allowances and tax bands. | Income Tax position, Personal Allowance and adjusted net income. |
| Savings and investments | Different allowances may interact across savings interest, dividends and gains. | ISA usage, dividend allowance, savings allowance and CGT position. |
| Pensions | Contributions may support retirement planning and affect adjusted net income. | Annual allowance, tapered allowance, MPAA and contribution limits. |
| Estate planning | Thresholds, exemptions and reliefs may affect future IHT exposure. | Nil-rate bands, residence nil-rate band and family circumstances. |
| Example allowance | Potential benefit | Important note |
|---|---|---|
| ISA allowance | Can help shelter savings interest, dividends and investment gains from tax. | Different ISA types have different rules and limits. |
| Pension contributions | May support retirement planning and, in some cases, help reduce adjusted net income. | Allowances and tax relief depend on individual circumstances. |
| When to review | Why | How a joined-up plan can help |
|---|---|---|
| Before the end of each tax year | Some allowances cannot be carried forward. | Helps identify which allowances to prioritise and where tax efficiencies may be available. |
| When circumstances change | Income, savings, investments, pensions and longer-term goals can change over time. | Helps highlight where caution may be needed before making decisions. |
Looking for tax planning support?
Our Lifestyle Financial Planners are here to help. By taking the time to understand your goals, circumstances and priorities, they can help you identify opportunities to make your finances more tax-efficient and ensure your financial plan remains aligned with what matters most to you.
If you’d like to explore this further, book your free, no-obligation consultation with us today.
Sources
GOV.UK. Income Tax rates and Personal Allowances. Available at: https://www.gov.uk/income-tax-rates. Accessed: 14 July 2026.
HM Revenue & Customs. Income Tax rates and allowances for current and previous tax years. Available at: https://www.gov.uk/government/publications/rates-and-allowances-income-tax/income-tax-rates-and-allowances-current-and-past. Accessed: 14 July 2026.
GOV.UK. Tax on savings interest. Available at: https://www.gov.uk/apply-tax-free-interest-on-savings. Accessed: 15 July 2026.
GOV.UK. Tax on dividends. Available at: https://www.gov.uk/tax-on-dividends. Accessed: 14 July 2026.
HM Revenue & Customs. Capital Gains Tax rates and allowances. Available at: https://www.gov.uk/guidance/capital-gains-tax-rates-and-allowances. Accessed: 14 July 2026.
GOV.UK. Individual Savings Accounts. Available at: https://www.gov.uk/individual-savings-accounts. Accessed: 14 July 2026.
HM Revenue & Customs. Pension schemes rates. Available at: https://www.gov.uk/government/publications/rates-and-allowances-pension-schemes/pension-schemes-rates. Accessed: 14 July 2026.
GOV.UK. Tax on your private pension contributions. Available at: https://www.gov.uk/tax-on-your-private-pension/annual-allowance. Accessed: 15 July 2026.
HM Revenue & Customs. Inheritance Tax thresholds. Available at: https://www.gov.uk/government/publications/inheritance-tax-thresholds/inheritance-tax-thresholds. Accessed: 14 July 2026.
HM Revenue & Customs. Rates and thresholds for employers 2026 to 2027. Available at: https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2026-to-2027. Accessed: 14 July 2026.
Important information
We offer a free initial consultation to discuss your goals and next steps. If you decide to go ahead with advice, charges may apply – these will be explained before you commit.
This article is for information only and does not constitute personal financial, tax or legal advice. Tax treatment depends on your individual circumstances and may be subject to change. Tax planning is not regulated by the Financial Conduct Authority. The value of investments and any income from them can fall as well as rise, and you may get back less than you invest. Pension, investment and estate planning rules can be complex, and you should seek regulated financial advice before making decisions.