UK Tax Year 2026-27: Every Change That Hits Your Payslip This April

April 6 is Britain's tax New Year. For the 2026-27 tax year, some thresholds are frozen (fiscal drag hitting earners harder), others have moved. Here is the full picture.

What's frozen (the stealth tax)

• Personal allowance: £12,570 — frozen since 2021-22, now 5 years running
• Basic rate band: £37,700 (so higher rate starts at £50,270)
• Additional rate threshold: £125,140
• CGT annual exempt amount: £3,000 (down from £12,300 three years ago)
• Dividend allowance: £500

Freezes mean if your salary rose with inflation, more of it falls into higher brackets. That's fiscal drag — and it's costing the average higher-rate taxpayer £400+ per year.

What's changing

• NI Class 1 (employee): Main rate 8% above £12,570 (employer side separately raised in 2024 Budget)
• ISA allowance: £20,000 (unchanged, but note a renewed rumour of £15,000 cap in future Budget — unconfirmed)
• Pension annual allowance: £60,000
• Pension lifetime allowance: abolished (replaced by lump sum allowance of £268,275)
• Stamp Duty Land Tax: First-time buyer threshold reverted to £300,000 from April 1, 2025 — confirm current bands on gov.uk

Practical moves for this week

1. Max your ISA. £20k refreshes today. Use it. 2. Crystallise CGT up to £3k. Sell a winning position, rebuy after 30 days (bed-and-ISA or bed-and-spouse to avoid same-day matching). 3. Check your tax code. HMRC reissues codes in April. Wrong code = you overpay or underpay for 12 months. 4. Pension contribution. Use the 3-year carry-forward before the April 5, 2027 deadline for unused 2023-24 allowance.

Run the numbers

Our UK Income Tax Calculator, Take-Home Pay Calculator and Stamp Duty Calculator are updated for 2026-27.