What's Changed for 2026-27

Income tax thresholds and rates remain frozen for 2026-27 — the same as 2025-26.

• Personal Allowance: £12,570 (unchanged)
• Basic rate band (England/Wales/NI): £12,571 – £50,270 at 20% (unchanged)
• Higher rate: £50,271 – £125,140 at 40% (unchanged)
• Additional rate: Above £125,140 at 45% (unchanged)
• Scotland: Six bands from 19% to 48% — thresholds unchanged from 2025-26

With thresholds frozen and wages rising, more people are pulled into higher bands — a phenomenon known as fiscal drag.

NI rates and thresholds remain unchanged for 2026-27.

• Employee Class 1: 8% on £12,570 – £50,270, 2% above (unchanged)
• Self-employed Class 4: 6% on £12,570 – £50,270, 2% above (unchanged)
• Class 2 weekly rate: £3.50 (unchanged)

Dividend tax rates are unchanged for 2026-27.

All CGT rates are now unified at 18%/24% since the Autumn 2024 Budget. BADR and Investors' Relief rates continue their phased increase.

• Annual Exempt Amount: £3,000 (unchanged)
• All assets: 18% / 24% (unchanged from 2025-26)
• BADR rate: 14% → 18%
• Investors' Relief rate: 14% → 18%

Repayment thresholds have increased for Plan 1 and Plan 2, meaning slightly lower monthly repayments.