6 April 2027 – 5 April 2028
UK income tax rates and allowances 2027/28
In England, Wales and Northern Ireland, income tax on salary, self-employment and pensions stays at 20% (£12,571–£50,270), 40% (£50,271–£125,140) and 45% (over £125,140). Savings interest and property income move to 22%, 42% and 47%. Dividend tax stays at 10.75%, 35.75% and 39.35%.
Last updated . Based on changes announced to date; we will update it as further changes are announced.
Personal Allowance for 2027/28: £12,570
The standard UK Personal Allowance for the 2027/28 tax year stays frozen at £12,570, so it is not going up in April 2027. You pay no income tax on income up to this amount. The allowance falls by £1 for every £2 of adjusted net income over £100,000, reaching zero at £125,140.
Income tax bands and Personal Allowance
Salary, self-employment profit and taxable pensions use the main income tax rates. The ranges below are taxable income after allowances, not gross salary. England and Northern Ireland rates are shown; Welsh rates remain subject to Welsh decisions. Scotland is shown separately.
| Rate or allowance | 2027/28 figure | Status and conditions |
|---|---|---|
| Personal Allowance | £12,570 | Frozen. Reduced by £1 for each £2 of adjusted net income above £100,000. |
| Personal Allowance taper | £100,000 to £125,140 | No allowance remains at £125,140 adjusted net income. |
| Basic rate | 20% on the first £37,700 | £50,270 gross income with a full Personal Allowance. |
| Higher rate | 40% above £37,700 up to £125,140 taxable income | The Personal Allowance taper affects the gross-income equivalent. |
| Additional rate | 45% above £125,140 taxable income | Current rule; no change announced for 2027/28. |
| Marriage Allowance transfer | £1,260; up to £252 tax reduction | Eligibility conditions apply; not a shared household allowance. |
Savings, dividends and property income
Savings and dividend rates apply UK-wide. Property rates and 22% residential finance-cost relief below apply to England, Wales and Northern Ireland. Scotland’s property rules remain subject to devolved decisions.
| Rate or allowance | 2027/28 figure | Status and conditions |
|---|---|---|
| Savings interest: basic / higher / additional | 22% / 42% / 47% | Announced increase from 6 April 2027. |
| Property profit: basic / higher / additional | 22% / 42% / 47% | Announced increase from 6 April 2027; not Scottish property income. |
| Residential finance-cost tax credit | 22% of eligible finance costs | Relief limits apply; this is a tax credit, not a deduction from rental profit. Scottish preview retains 20%. |
| Personal Savings Allowance | £1,000 / £500 / £0 | Basic / higher / additional-rate taxpayers respectively; unchanged. |
| Starting rate for savings | Up to £5,000 at 0% | Reduced £1 for £1 by non-savings income above your Personal Allowance. |
| Dividend allowance | £500 | Current rule; no change announced for 2027/28. |
| Dividends: basic / higher / additional | 10.75% / 35.75% / 39.35% | Retains the rates introduced in 2026/27; no further increase announced. |
| Trading and property allowances | £1,000 each | Separate gross-income allowances; restrictions apply and you cannot also deduct actual expenses against the same income. |
| Rent a Room relief | £7,500; £3,750 if income is shared | For qualifying furnished accommodation in your main home; conditions apply. |
National Insurance
Standard annual thresholds are shown. Actual payroll deductions depend on pay period, NI category and director status. NI does not normally apply to savings, dividends or pension income.
| Rate or allowance | 2027/28 figure | Status and conditions |
|---|---|---|
| Employee Class 1 | 8% between £12,570 and £50,270; 2% above | Main thresholds frozen; rates retained under current rules. |
| Employer Class 1 | 15% above £5,000 | Standard secondary threshold; reliefs and special categories can differ. |
| Employment Allowance | Up to £10,500 | For eligible employers; a company with only one director as its sole liable employee cannot normally claim. |
| Self-employed Class 4 | 6% between £12,570 and £50,270; 2% above | Main profit limits frozen; current rates retained. |
| Self-employed Class 2 | No compulsory payment for qualifying profits | 2027/28 voluntary weekly rate and small-profits threshold await confirmation; do not treat 2026/27 figures as final. |
Pension and ISA allowances
Pension allowances are not a promise of tax relief on every contribution. Earnings, scheme rules, previous withdrawals and protected allowances can affect your position.
| Rate or allowance | 2027/28 figure | Status and conditions |
|---|---|---|
| Standard pension annual allowance | £60,000 | Includes employer contributions; defined-benefit pension growth also counts. |
| Annual allowance taper | Threshold income above £200,000 and adjusted income above £260,000; minimum £10,000 | Allowance reduces £1 for each £2 of adjusted income above £260,000, if both income tests apply. |
| Money Purchase Annual Allowance | £10,000 | Can apply after flexibly accessing taxable defined-contribution pension income. |
| Standard lump sum allowance | £268,275; normally up to 25% tax-free | Across pensions, subject to protection and previous use. Our withdrawal calculator does not enforce this lifetime cap. |
| Standard lump sum and death benefit allowance | £1,073,100 | Separate allowance; relevant benefits and protection affect its use. |
| Overall adult ISA subscription limit | £20,000 a year | Across ISA types; ISA returns remain sheltered from UK income tax and CGT. |
| Cash ISA subscriptions | £12,000 if under 65; £20,000 aged 65 or over | Announced from April 2027, within the overall ISA limit; not a cap on existing balances. |
| Lifetime ISA subscriptions | £4,000; 25% government bonus | Within the overall ISA limit; age, withdrawal and qualifying-purchase conditions apply. |
| State Pension weekly amount | 2027/28 rate awaiting confirmation | Do not use the carried-forward preview amount as a confirmed entitlement. |
Capital Gains Tax and Inheritance Tax
These are separate taxes from income tax. Exemptions, reliefs and asset-specific rules can change the outcome; the dashboard is not an Inheritance Tax calculator.
| Rate or allowance | 2027/28 figure | Status and conditions |
|---|---|---|
| Individual CGT annual exempt amount | £3,000 | Current rule; no change announced for 2027/28. |
| CGT on most gains, including residential property | 18% / 24% | Rate depends on available basic-rate band. Main-home relief and other exemptions may apply. |
| Business Asset Disposal Relief rate | 18%; £1 million lifetime qualifying-gains limit | Current rules from April 2026; qualifying conditions apply. |
| Standard Inheritance Tax rate and nil-rate band | 40%; £325,000 nil-rate band | Generally applies to the taxable estate after exemptions and reliefs. |
| Residence nil-rate band | Up to £175,000; taper above a £2 million estate | Conditions include leaving a qualifying home to direct descendants; not available to every estate. |
Corporation Tax, VAT and employer levy
These current business-tax rules are included for company owners and people with side businesses. No change is announced here for 2027/28.
| Rate or allowance | 2027/28 figure | Status and conditions |
|---|---|---|
| Corporation Tax small / main rates | 19% up to £50,000 profit; 25% above £250,000 | Marginal relief between the limits; limits reduce for associated companies and short accounting periods. |
| VAT standard / reduced / zero rates | 20% / 5% / 0% | Treatment depends on the goods or services; exempt supplies are different from zero-rated ones. |
| VAT registration threshold | £90,000 | Taxable turnover over a rolling 12 months, not profit or the tax-year total; forward-looking test also applies. |
| Apprenticeship Levy | 0.5% of pay bill; £15,000 annual allowance | Generally payable above a £3 million annual pay bill; connected employers share the allowance. |
Child Benefit and student loans
Annual benefit uprating and some loan thresholds are not finalised here. Provisional figures are explicitly identified, not presented as confirmed 2027/28 rates.
| Rate or allowance | 2027/28 figure | Status and conditions |
|---|---|---|
| High Income Child Benefit Charge | Starts above £60,000; full charge at £80,000 | Based on the higher earner’s adjusted net income; 1% of benefit for each complete £200 above £60,000. |
| Child Benefit weekly payments | 2027/28 amounts awaiting confirmation | The preview carries forward 2026/27 payments; annual uprating may change these. |
| Undergraduate / postgraduate repayment rates | 9% / 6% above the applicable threshold | Multiple undergraduate plans do not mean two separate 9% charges; a postgraduate loan can be charged on top. |
| Plan 1 annual repayment threshold | £28,005 | Confirmed by the Student Loans Company for 6 April 2027 to 5 April 2028. Our preview currently still uses £26,900. |
| Plan 2 annual threshold in our preview | £29,385 | £29,385 freeze announced from April 2027 for three years. |
| Plan 4 (Scotland) annual threshold in our preview | £33,795 | 2026/27 figure carried forward in the calculator; final 2027/28 threshold not verified here. |
| Plan 5 annual threshold in our preview | £25,000 | Current £25,000 threshold retained. |
| Postgraduate annual threshold in our preview | £21,000 | 2026/27 figure carried forward in the calculator; final 2027/28 threshold not verified here. |
Scottish income tax: 2027/28 not yet confirmed
Our preview carries forward the 2026/27 starter, basic, intermediate, higher, advanced and top rates of 19%, 20%, 21%, 42%, 45% and 48%, with the existing calculator bands. These are assumptions, not a published 2027/28 Scottish band table. Scottish rates apply to earnings, pension and property income; savings and dividend rates remain UK-wide.