UK Tax Year Changes
Track how UK tax rules change each year. See what’s different for income tax, National Insurance, capital gains, and more.
2026-27
Autumn Budget 2025 raises dividend tax by 2pp and extends the income tax threshold freeze to 2030-31, while employer NI stays at the higher 15% rate introduced in April 2025.
Read full analysis →Income tax threshold freeze extended to 2030-31
NegativeThe Personal Allowance stays at £12,570 and the higher rate threshold at £50,270. Autumn Budget 2025 extended the freeze — previously due to end in 2027-28 — by three more years to April 2031.
Calculate yours →Dividend tax rates rise by 2 percentage points
NegativeAnnounced at Autumn Budget 2025: the basic rate on dividends rises from 8.75% to 10.75% and the higher rate from 33.75% to 35.75%, effective 6 April 2026. The additional rate stays at 39.35% and the £500 dividend allowance is unchanged.
Calculate yours →Employer NI rate stays at 15%
NegativeThe employer NI rate remains at 15% with the £5,000 secondary threshold, introduced in April 2025.
Calculate yours →Capital gains tax rates unchanged
NeutralCGT rates remain at 18% (basic) and 24% (higher) for most assets after the October 2024 increases.
Calculate yours →Employment Allowance at £10,500
PositiveSmall businesses can reduce their employer NI bill by up to £10,500, increased from £5,000.
Calculate yours →Scottish Starter and Basic bands uplifted
PositiveRates unchanged (19% to 48%) but Scottish Budget 2026-27 uplifted the Starter band by 40% and the Basic band by 7.4%. Starter now runs to £16,537 and Basic to £29,526. Intermediate, Higher, Advanced and Top thresholds remain frozen.
Calculate yours →Approved mileage rate rises to 55p — first change since 2011
PositiveThe AMAP rate for the first 10,000 business miles rises from 45p to 55p per mile, backdated to 6 April 2026 — the first increase in 15 years. The 25p rate above 10,000 miles is unchanged.
Calculate yours →Electric company car BiK rate rises to 4%
NegativeThe Benefit-in-Kind appropriate percentage for zero-emission company cars rises from 3% (2025-26) to 4% for 2026-27, part of the scheduled 1pp-a-year increases through 2027-28.
Calculate yours →Statutory Sick Pay: waiting days and earnings floor removed
PositiveFrom 6 April 2026, SSP is payable from day one of sickness absence (previously a 3-day wait) and the Lower Earnings Limit eligibility floor is abolished, extending SSP to lower earners. Pay is the lower of 80% of average weekly earnings or the statutory flat rate.
Calculate yours →Two-child limit on Universal Credit removed
PositiveFrom 6 April 2026 the two-child limit on the Universal Credit child element was scrapped, so families now receive the child element for every child rather than just the first two (subject to the overall Benefit Cap).
Calculate yours →Voluntary Class 2/3 NI rates uprated
NeutralVoluntary Class 2 NI rises to £3.65/week and Class 3 to £18.40/week for 2026-27, used to fill gaps in your National Insurance record.
Calculate yours →2025-26 — Major employer NI increase to 15%, frozen income tax thresholds, and CGT rate rises took effect.
Employer NI increased to 15%
NegativeEmployer NI rose from 13.8% to 15%, with the secondary threshold cut from £9,100 to £5,000.
Calculate yours →Income tax thresholds still frozen
NegativePersonal Allowance and rate thresholds remain unchanged, pulling more earnings into higher bands.
Calculate yours →Capital gains tax rates increased
NegativeLower rate rose from 10% to 18%, higher rate from 20% to 24% for most assets.
Calculate yours →Child Benefit HICBC thresholds raised
PositiveHICBC now starts at £60,000 (up from £50,000) with a tapered clawback to £80,000.
Calculate yours →2024-25 — Employee NI cut to 8%, dividend allowance halved to £500, and CGT annual exempt amount reduced.
Employee NI cut to 8%
PositiveEmployee NI main rate reduced from 12% to 8% (via two cuts in January and April 2024).
Calculate yours →Dividend allowance halved to £500
NegativeTax-free dividend allowance dropped from £1,000 to £500.
Calculate yours →CGT annual exempt amount cut to £3,000
NegativeThe capital gains tax-free allowance dropped from £6,000 to £3,000.
Calculate yours →Compare Your Tax
See exactly how much more or less you’ll take home by comparing two tax years side by side.
Open Tax Year Comparison →Related Calculators
Last updated March 2026. Covers 2026-27, 2025-26, and 2024-25 tax years.