| Tax year | 6 April 2026 to 5 April 2027 |
| Legal basis | Finance Act 2026, Royal Assent 18 March 2026 |
| New Budget | Budget 2026 of 28 October 2026, Finance Bill 2026-27 to follow |
| Next key date | 6 April 2027: interest, rents, trading allowance, pensions in inheritance tax |
| Updated | November 2026 |
How to read the status
In the UK a tax change is announced in a Budget and usually becomes law in the next Finance Act. Law in the tables means enacted, for example in the Finance Act 2026 of 18 March 2026. Finance Bill 2026-27 means announced in Budget 2026 of 28 October 2026, with the legislation still to come. Consultation means the government is still asking, and details may change.
The background to each point is in our pieces on UK Budget 2025, ISAs and everyday tax and capital gains tax.
What has applied since 6 April 2026
These changes are in force and affect the current 2026/27 tax year.
| Change | Status |
|---|---|
| Dividends: 10.75% (basic rate) and 35.75% (higher rate) instead of 8.75% and 33.75% | law, Finance Act 2026 s4 |
| Business Asset Disposal Relief: 18% instead of 14% | in force |
| Making Tax Digital for Income Tax for sole traders and landlords with income over £50,000 | in force, no penalties for late quarterly updates in 2026/27 |
| Employees can no longer claim working from home costs themselves | law, Finance Act 2026 s21 |
| Employers may reimburse home working equipment tax-free | law, in force |
| No more voluntary Class 2 contributions for periods abroad; Class 3 only after 10 years in the UK | in force |
| Carried interest taxed under income tax instead of capital gains tax | in force |
| APR and BPR in inheritance tax: 100% only on the first £1 million, 50% above | law, Finance Act 2026 s65 |
| Dividends during temporary non-residence fully taxable | law, Finance Act 2026 Schedule 3 |
| Scotland: starter band up to £16,537 instead of £15,397, basic band up to £29,526 instead of £27,491 | in force |
| Crypto ETNs belong in the innovative finance ISA, no longer in the stocks and shares ISA | in force, existing holdings excepted |
| Lifetime ISA: 20% instead of 25% charge when buying a first home over £450,000 | in force since 29 October 2026 |
| Missed 60-day property return: no further late filing penalties once the sale is in Self Assessment | applies from 28 October 2026, law to follow in the Finance Bill 2026 |
Finance Act 2026, GOV.UK, Budget 2026 OOTLAR
What is announced: 2027 to 2031
These changes are still to come. Where Budget 2026 tightens a rule already enacted, both versions are shown.
| From | Change | Status |
|---|---|---|
| 6 April 2027 | Interest: 22%, 42%, 47%; under Budget 2026 planned 24%, 44%, 49% | 22/42/47 law; 24/44/49 Finance Bill 2026-27 |
| 6 April 2027 | Property income (England, Wales, Northern Ireland): 22%, 42%, 47%; under Budget 2026 planned 24%, 44%, 49% | 22/42/47 law; 24/44/49 Finance Bill 2026-27 |
| 6 April 2027 | Cash ISA stays at £20,000 (the cut to £12,000 is dropped) | revoking regulations announced for November 2026 |
| 6 April 2027 | Trading allowance £3,000 instead of £1,000 | Finance Bill 2026-27 |
| 6 April 2027 | Pension tax allowance for pensioners with income up to the full State Pension | Finance Bill 2026-27 |
| 6 April 2027 | Unused pension funds count towards the estate for inheritance tax | law, Finance Act 2026 |
| 6 April 2027 | Business Asset Disposal Relief: lifetime limit £500,000 instead of £1 million | Finance Bill 2026 |
| 6 April 2027 | Founders relief: 10% capital gains tax on up to £10 million | consultation since 28 October 2026 |
| 6 April 2027 | Making Tax Digital from £30,000 income; expected non-residents exempt until further notice | threshold in force; exemption by regulations before April 2027 |
| 1 April 2028 | High Value Council Tax Surcharge on homes worth £2 million or more in England, £2,500 to £7,500 a year | Finance Bill 2026-27 |
| 1 April 2028 | eVED: 3 pence a mile for electric cars, 1.5 pence for plug-in hybrids | Finance Bill 2026-27 |
| 6 April 2028 | Making Tax Digital from £20,000 income | planned according to GOV.UK |
| April 2028 | Employment expenses above £2,500 deductible through PAYE without Self Assessment | announced in Budget 2026 |
| April 2029 | First Time Buyer ISA replaces the Lifetime ISA for new savers | legislation announced |
| April 2029 | More frequent in-year payments for Self Assessment taxpayers with payments on account | announced, details open |
| 6 April 2029 | National Insurance on salary-sacrificed pension contributions above £2,000 | law, NIC (Employer Pensions Contributions) Act 2026 |
| to 2030/31 | Personal allowance £12,570 and basic rate band £37,700 frozen | law, Finance Act 2026 s10 |
| to 5 April 2031 | Nil-rate band £325,000 and residence nil-rate band £175,000 frozen | law, Finance Act 2026 s72 |
Finance Act 2026, Budget 2026 OOTLAR and TIINs, GOV.UK
What to get done before April 2027
Three things are worth doing before the next key date. First: interest. Because rates on savings interest rise while the personal savings allowance stays, the ISA becomes even more valuable; use the £20,000 for 2026/27 before the tax year ends on 5 April 2027.
Second: rents. If you let a flat in England, whether from the UK or from abroad, expect separate, higher rates from April 2027. Review financing, ownership structure and costs now, including whether you fall under Making Tax Digital from April 2027.
Third: a business sale. A sale with Business Asset Disposal Relief up to 5 April 2027 still uses the lifetime limit of £1 million; after that it is to be £500,000, with rules against forestalling contracts. The deadlines for returns and payment are in HMRC and Self Assessment.
Frequently asked questions about the 2026 changes
Which UK tax changes have applied since April 2026?
Mainly higher dividend rates, 18% Business Asset Disposal Relief, Making Tax Digital from £50,000, the end of the working from home deduction for employees and new limits on APR and BPR in inheritance tax.
Is UK income tax going up in 2027?
Budget 2026 announced no increase in the main rates of 20%, 40% and 45% and expressly rules out broad tax rises. What is to rise from April 2027 are the rates on interest and property income, and the allowances stay frozen.
Is Budget 2026 already law?
No. Most measures come with the Finance Bill 2026-27 or by regulations. A few, such as the lower Lifetime ISA charge, already apply.
Sources: legislation.gov.uk: Finance Act 2026 (c. 11); GOV.UK: Budget 2026, Overview of tax legislation and rates (OOTLAR); GOV.UK: Budget 2025, Overview of tax legislation and rates (OOTLAR); GOV.UK: Tax-free savings newsletter 24, October 2026; GOV.UK: Find out if and when you need to use Making Tax Digital for Income Tax; GOV.UK: Business Asset Disposal Relief; GOV.UK: Claim tax relief for your job expenses, working from home; GOV.UK: Income Tax in Scotland; GOV.UK: Voluntary National Insurance
