UK Tax Changes 2027/28: What Changes From April 2027
What changes from April 2027 for employees, savers, landlords, pensioners and the self-employed - new savings rates, MTD, pensions IHT - and what is law yet.
Every change we could verify for the 2027/28 tax year, grouped by who it affects, with the date it applies from and whether it is law yet. Of the 38 items below, 13 are already law and 22 are government announcements (Budget 2026 on 28 October 2026 unless the note says otherwise) that still need Finance Bill 2026-27 or regulations; 1 rests on HMRC guidance alone. Status checked on 9 November 2026.
The 2027/28 tax year starts on 6 April 2027. Until 5 April 2027 the 2026/27 rules apply, and the calculators on this site use them. For what changed in April 2026, see UK tax changes 2026/27.
What the status means
- Law: an Act or a made statutory instrument already says so for 2027/28, including figures that stay the same because the law sets a fixed amount with no end date.
- Announced: announced by the government (at Budget 2026 unless the note says otherwise) but not yet legislated. Where current law says something different, the note says what.
- HMRC guidance: stated by HMRC, with no legislation yet bringing it into force.
- Planned: a government timeline date with no legislation bringing it into force.
- Not yet published: the 2027/28 figure has not been set.
2026/27 figures are read from this site's rules file for that year. 2027/28 figures are taken from the Budget 2026 documents (OOTLAR and Annex A) or the legislation, as shown against each item.
Income Tax and National Insurance
The Personal Allowance and National Insurance are UK-wide. The Income Tax rates and bands apply in England and Northern Ireland, and in Wales while the Senedd leaves the Welsh rates unchanged. Scottish rates and bands are set by the Scottish Parliament and are not covered here.
| What changes | From | Status and source |
|---|---|---|
| Personal Allowance stays £12,570 and the basic rate band stays £37,700, so higher rate still starts at £50,270 of income. More: Personal Allowance explained | 6 April 2027 | Law Finance Act 2021 s.5 fixes both amounts for 2027-28; Finance Act 2026 s.10 extends the freeze to 2030-31. FA 2021 s.5 · FA 2026 s.10 |
| Main rates (20%, 40%, 45%), the £125,140 additional rate threshold and the £100,000 Personal Allowance taper point are unchanged. | 6 April 2027 | Announced Annex A shows no change. The Income Tax charge and main rates for 2027-28 are set each year by the Finance Bill, here Finance Bill 2026-27 (OOTLAR 1.3). OOTLAR Annex A · OOTLAR 1.3 |
| Employee National Insurance rates stay 8% and 2%. More: UK National Insurance rates | 6 April 2027 | Law Social Security Contributions and Benefits Act 1992 s.8(2) sets the main and additional primary percentages with no end date. SSCBA 1992 s.8 |
| The Primary Threshold (£12,570) and Upper Earnings Limit (£50,270) are unchanged. | 6 April 2027 | Announced OOTLAR 2.1 says these stay at 2026-27 levels until 2030-31. They are set year by year: the current regulation (SI 2001/1004 reg 10) covers only the year beginning 6 April 2026, so 2027-28 needs the regulations due in early 2027. OOTLAR 2.1 · OOTLAR Annex A · SI 2001/1004 reg 10 |
| Lower Earnings Limit rises from £6,708 (£129 a week) to £6,916 (£133 a week). Earnings at or above it count towards State Pension qualifying years. | 6 April 2027 | Announced September CPI of 3.5%. Set by affirmative regulations in early 2027. OOTLAR 2.1 |
Savers and investors
Tax on savings interest rises above the main rates from April 2027.
| What changes | From | Status and source |
|---|---|---|
| The savings rates of Income Tax, currently the same as the main rates (20%, 40%, 45%), rise above them. Budget 2026 set them at 24%, 44% and 49%, UK-wide. More: How tax on savings interest is paid | 6 April 2027 | Announced Current law (Finance Act 2026 s.5) sets 22%, 42% and 47% for 2027-28. The higher figures are to be legislated in Finance Bill 2026-27 (OOTLAR 1.1). FA 2026 s.5 · OOTLAR 1.1 |
| Dividend rates stay 10.75%, 35.75% and 39.35%. More: Dividend tax calculator | 6 April 2027 | Law Finance Act 2026 s.4 set the ordinary and upper rates for 2026-27 and subsequent tax years. FA 2026 s.4 · OOTLAR Annex A |
| Personal Savings Allowance (£1,000 basic rate, £500 higher rate) and the £500 dividend allowance are unchanged. | 6 April 2027 | Law Income Tax Act 2007 s.12B (savings allowance) and s.13A (dividend nil rate) set fixed amounts with no end date. ITA 2007 s.12B · ITA 2007 s.13A |
| The starting rate limit for savings stays £5,000. | 6 April 2027 | Law ITA 2007 s.21(3A) would index it each year, but Finance Act 2026 s.9 fixes it for 2026-27 to 2030-31 and disapplies the indexation. FA 2026 s.9 · ITA 2007 s.12 |
| Cash ISA limit: Budget 2026 keeps it at £20,000 for all savers over 18. The overall ISA limit stays £20,000 and the Junior ISA £9,000. More: ISA allowance explained | 6 April 2027 | Announced SI 2026/1018 is still law: from 6 April 2027 it caps cash ISA subscriptions at £12,000 for anyone aged 64 or under at the end of the tax year. OOTLAR 2.5 says regulations to keep £20,000 were to be laid in November 2026; none had been made by 9 November 2026. SI 2026/1018 reg 6 · OOTLAR 2.5 · OOTLAR Annex A |
| Lifetime ISA: the withdrawal charge on a home bought above the property price cap fell from 25% to 20%. Other unauthorised withdrawals stay at 25%. More: Lifetime ISA guide | 29 October 2026 | Already in force SI 2026/1130, for withdrawals made on or after 29 October 2026. SI 2026/1130 · OOTLAR 2.4 |
| Business Asset Disposal Relief lifetime limit falls from £1,000,000 to £500,000 for disposals on or after 6 April 2027. The 18% rate is unchanged. More: Business Asset Disposal Relief guide | 6 April 2027 | Announced Finance Bill 2026-27, with special rules for contracts made before 6 April 2027 but not completed (OOTLAR 1.33). OOTLAR 1.33 · OOTLAR Annex A |
Landlords
Rental profits get their own Income Tax rates from April 2027.
| What changes | From | Status and source |
|---|---|---|
| Property income gets its own Income Tax rates for the first time. Finance Act 2026 created them; Budget 2026 set them at 24%, 44% and 49% in England, Wales and Northern Ireland. More: Property income 2027 calculator | 6 April 2027 | Announced Current law (Finance Act 2026 s.7) sets property rates of 22%, 42% and 47% for 2027-28. The higher figures are to be legislated in Finance Bill 2026-27, and the Scottish and Welsh governments can set their own property rates (OOTLAR 1.2). FA 2026 s.7 · OOTLAR 1.2 · OOTLAR Annex A |
Pensions and pensioners
The headline change is Inheritance Tax on unused pension pots.
| What changes | From | Status and source |
|---|---|---|
| Most unused pension funds and pension death benefits count towards the estate for Inheritance Tax. More: Pensions and Inheritance Tax from April 2027 | Deaths on or after 6 April 2027 | Law Finance Act 2026 ss.66 to 70; s.71 applies them to deaths on or after 6 April 2027. Finance Bill 2026-27 adds technical changes, including letting a prospective personal representative direct the scheme to pay the tax (OOTLAR 1.27). FA 2026 s.66 · FA 2026 s.71 · OOTLAR 1.27 |
| Pension Tax Allowance: pensioners whose total income is no more than the full new State Pension will not pay small amounts of Income Tax through Simple Assessment. Annex A gives the full allowance up to £13,037, withdrawn by £1 for every £3 above it, and gone at £13,319. More: Is the State Pension taxable? | 6 April 2027 (2027/28 to 2029/30) | Announced Announced at Budget 2025; to be legislated in Finance Bill 2026-27 (OOTLAR 1.4). OOTLAR 1.4 · OOTLAR Annex A |
| State Pension, benefit and statutory pay rates for 2027/28 (Statutory Sick Pay, maternity, paternity and similar). More: Triple lock and the April 2027 State Pension rise | April 2027 | Not yet published DWP sets these in its annual uprating. Its 2027/28 rates were not on GOV.UK on 9 November 2026; the 2026/27 table is the latest. DWP benefit and pension rates 2026 to 2027 |
| Pension allowances unchanged: Annual Allowance £60,000, Money Purchase Annual Allowance £10,000, Lump Sum Allowance £268,275, Lump Sum and Death Benefit Allowance £1,073,100. | 6 April 2027 | Law Finance Act 2004 s.228(1) (annual allowance, 2023-24 and each subsequent year) and s.227ZA(1)(b) (money purchase), ITEPA 2003 s.637P and s.637R (lump sum allowances): fixed amounts with no end date. FA 2004 s.228 · FA 2004 s.227ZA · ITEPA s.637P · ITEPA s.637R |
Employees: pay, company cars and expenses
Minimum wage rates change on 1 April; benefits in kind move into payroll.
| What changes | From | Status and source |
|---|---|---|
| National Living Wage (21 and over) rises from £12.71 to £13.21 an hour; 18 to 20 from £10.85 to £11.27; 16 to 17 and eligible apprentices to £8.31; accommodation offset to £11.53 a day. More: Minimum wage employer guide | 1 April 2027 | Announced Announced in the Budget 2026 document (paragraph 6.128) and by the Low Pay Commission on 28 October 2026. The rates are set by amending regulations; none had been made by 9 November 2026. Budget 2026 document · Low Pay Commission rates for 2027 · GOV.UK minimum wage rates |
| Company car tax on fully electric cars rises from 4% to 5% of list price. Each band from 1 to 69 g/km also rises by one point; cars at 70 g/km and above are unchanged. More: EV company car tax calculator | 6 April 2027 | Law Finance Act 2023 s.11(7)-(8), for 2027-28 and later years. FA 2023 s.11 |
| Payrolling benefits in kind becomes mandatory: employers report and tax company cars and vans, car and van fuel and medical benefits through payroll instead of a P11D. Most other benefits follow on 6 April 2028; employment-related loans and living accommodation are left out. More: Mandatory payrolling of benefits in kind | 6 April 2027 | Announced To be legislated in Finance Bill 2026-27 (OOTLAR 1.24). Timing unchanged from HMRC's earlier announcement. OOTLAR 1.24 · HMRC: changes to reporting benefits in kind |
| Car fuel benefit multiplier rises from £29,200 to £30,200; van benefit charge to £4,310; van fuel benefit to £825. More: Benefits in kind explained | 6 April 2027 | Announced September CPI uprating, by statutory instrument (OOTLAR 2.6). The first published text, on 28 October 2026, printed the van benefit and car fuel figures under each other's labels; this is the corrected text, in place by 30 October. OOTLAR 2.6 |
| Approved mileage rate above 10,000 business miles in your own car or van goes from 25p to 35p a mile, for employees and for self-employed simplified mileage. The 55p rate for the first 10,000 miles is unchanged. More: Mileage allowance guide | 6 April 2027 | Announced By statutory instrument (OOTLAR 2.7). Budget 2026 also makes the temporary 55p rate for the first 10,000 miles permanent (Budget 2026 document, paragraph 3.14). OOTLAR 2.7 · Budget 2026 document, para 3.14 |
Self-employed and Self Assessment
Making Tax Digital reaches a second group, and the Trading Allowance triples.
| What changes | From | Status and source |
|---|---|---|
| Making Tax Digital for Income Tax applies to sole traders and landlords whose qualifying income for 2025/26 was over £30,000. They keep digital records and send quarterly updates. More: Making Tax Digital for Income Tax guide | 6 April 2027 | Law SI 2026/336 reg 27(b) sets the qualifying amount for 2025-26; HMRC confirms the 6 April 2027 start. SI 2026/336 reg 27 · HMRC: check if you need MTD |
| People who must join Making Tax Digital in April 2027 get no late-submission penalty points on their 2027/28 quarterly updates. They still have to send the updates before they can file the return. More: MTD penalty points explained | 2027/28 quarterly updates | Announced OOTLAR 2.36. HMRC's penalty guidance does not yet reflect it: it still says points apply to quarterly updates for tax years after 2026 to 2027. OOTLAR 2.36 · HMRC: MTD penalties |
| The points-based late submission and new late payment penalties reach every personal Self Assessment return, not only Making Tax Digital users. More: MTD penalty points explained | April 2027 | HMRC guidance HMRC guidance: "from April 2027, the new penalties will apply to everyone who submits a personal Self Assessment tax return". The only appointed-day regulations made (SI 2026/370) cover people under a Making Tax Digital quarterly update obligation in 2026-27 (reg 2); there is none yet for anyone else, including April 2027 joiners. HMRC: MTD penalties · SI 2026/370 |
| Trading Allowance, and the Self Assessment reporting threshold for trading income, rise from £1,000 to £3,000. More: Trading allowance calculator | 6 April 2027 | Announced Finance Bill 2026-27 (OOTLAR 1.5). OOTLAR 1.5 |
| Class 2 Small Profits Threshold rises from £7,105 to £7,355; voluntary Class 2 from £3.65 to £3.80 a week; Class 3 from £18.40 to £19.05 a week. Class 4 (6% and 2% between £12,570 and £50,270) is unchanged. More: Self-employed calculator | 6 April 2027 | Announced Set by affirmative regulations in early 2027 (OOTLAR 2.1). OOTLAR 2.1 · OOTLAR Annex A |
| Main rate writing-down allowance for plant and machinery falls from 14% to 12% (6 April 2027 for Income Tax, 1 April 2027 for Corporation Tax). The main rate first-year allowance rises to 50% for expenditure on or after 1 January 2027. | 6 April 2027 | Announced Finance Bill 2026-27 (OOTLAR 1.42). OOTLAR 1.42 |
Employers and small businesses
Employer National Insurance does not change. The employment law dates below come from the government's timeline, not from law.
| What changes | From | Status and source |
|---|---|---|
| Employer National Insurance stays 15%, and the Employment Allowance stays £10,500. More: Employer cost calculator | 6 April 2027 | Law SSCBA 1992 s.9(2) (secondary percentage) and National Insurance Contributions Act 2014 s.1(2) (Employment Allowance): fixed amounts with no end date. SSCBA 1992 s.9 · NICA 2014 s.1 |
| The Secondary Threshold, above which employers pay National Insurance, stays £5,000 a year. | 6 April 2027 | Announced Annex A shows no change. Set year by year: SI 2001/1004 reg 10 covers only the year beginning 6 April 2026, so 2027-28 needs the regulations due in early 2027 (OOTLAR 2.1). OOTLAR Annex A · OOTLAR 2.1 · SI 2001/1004 reg 10 |
| Employment Rights Act 2025: bereavement leave including pregnancy loss (s.18), an organisation-wide collective redundancy threshold (s.29), wider blacklisting protections, and mandatory gender equality and menopause action plans for private and voluntary sector employers. More: Employment Rights Act 2025 timeline | April 2027 (government timeline) | Planned The government timeline (updated 5 November 2026) puts these in April 2027. They take effect only when regulations bring them into force; no such regulations had been made by 9 November 2026. Government timeline · ERA 2025 |
| Vaping products: it becomes an offence to possess, display, sell or otherwise deal in an unstamped vaping product, or to let premises be used to sell one. More: Vaping Products Duty guide | 1 April 2027 | Law Finance Act 2026 s.130, in force on 1 April 2027 under s.141(5), whenever the product was made or imported. FA 2026 s.130 · FA 2026 s.141 |
| VAT on services bought from overseas: the reverse charge is restricted to UK businesses that are VAT registered. Where the UK business is not registered, the overseas supplier has to charge and account for UK VAT. | April 2027 | Announced Finance Bill 2026-27 (OOTLAR 1.59). OOTLAR 1.59 |
| VAT registration threshold stays £90,000 and the deregistration threshold £88,000. More: VAT registration thresholds | April 2027 | Law Value Added Tax Act 1994 Sch 1 para 1(1) and para 4(1) set both amounts with no end date; Annex A shows no change. VATA 1994 Sch 1 para 1 · VATA 1994 Sch 1 para 4 · OOTLAR Annex A |
Families, motoring and household bills
Child Benefit, car tax and the temporary energy and fuel reliefs.
| What changes | From | Status and source |
|---|---|---|
| Child Benefit rises from £27.05 to £28.00 a week for the eldest or only child, and from £17.90 to £18.55 for each other child. More: High Income Child Benefit Charge | April 2027 | Announced Rates listed in Annex A; set by the annual up-rating order. OOTLAR Annex A |
| Car tax (VED): the standard rate for cars first registered on or after 1 April 2017 rises from £200 to £210 a year, with other rates uprated by RPI. More: Car tax calculator | 1 April 2027 | Announced Finance Bill 2026-27 (OOTLAR 1.78; rates in Annex A). OOTLAR 1.78 · OOTLAR Annex A |
| VAT on household electricity: the 0% rate that SI 2026/987 set for supplies in Great Britain from 1 October 2026 to 31 March 2027 is extended to 30 June 2027. The usual 5% applies after that. More: Help with energy bills | 1 April 2027 to 30 June 2027 | Announced Extension to be made by regulations in early 2027 (OOTLAR 2.20). SI 2026/987 art 1(2) is the law for the period to 31 March 2027. The Budget expects the extended relief to apply in Northern Ireland from April 2027 (Budget 2026 document, paragraph 3.4). OOTLAR 2.20 · SI 2026/987 · Budget 2026 document, para 3.4 |
| Fuel duty: the temporary 5p a litre cut runs to 30 June 2027 instead of ending in January. On 1 July 2027 rates return to their pre-March-2022 level and are uprated by RPI. | 1 January to 30 June 2027 | Announced OOTLAR 2.18. OOTLAR 2.18 |
Not on this page yet
- Scottish and Welsh Income Tax rates and bands for 2027/28, which their governments set in their own budgets. See Scottish Income Tax bands.
- Student loan repayment thresholds for 2027/28, which GOV.UK had not published on 9 November 2026. The Budget 2026 document refers to "the freezing of the Plan 2 repayment threshold" (Table 1.4, note 2) without giving the figure.
- State Pension, benefit and statutory pay rates for 2027/28 (see the pensions section).
Related
- UK tax changes 2026/27 - what changed in April 2026, side by side with 2025/26
- Budget 2026 summary - everything announced on 28 October 2026
- UK tax cheat sheet 2026/27 - the rates that apply until 5 April 2027
- Salary calculator - take-home pay under the current tax year rules
Frequently asked questions
What tax changes start in April 2027?
The main ones: the tax rates on savings income rise above the main rates and property income gets its own rates, Making Tax Digital reaches sole traders and landlords with qualifying income over £30,000, unused pensions come into Inheritance Tax, company car tax on electric cars rises to 5%, and the minimum wage rises on 1 April. The Personal Allowance stays £12,570. Some of these are law already and some are Budget 2026 announcements still to be legislated.
Is the Personal Allowance still £12,570 in 2027/28?
Yes. Finance Act 2021 s.5 fixes the Personal Allowance at £12,570 and the basic rate band at £37,700 for 2027-28, and Finance Act 2026 s.10 extends the freeze to 2030-31. Higher rate therefore still starts at £50,270 of income in England and Northern Ireland, and in Wales while the Welsh rates are unchanged.
What will the tax rates on savings interest and rental income be from April 2027?
Budget 2026 announced 24%, 44% and 49% for savings income (UK-wide) and the same for property income in England, Wales and Northern Ireland, from 6 April 2027. Finance Act 2026 currently sets 22%, 42% and 47%; the higher rates are to be legislated in Finance Bill 2026-27.
Is the cash ISA limit being cut to £12,000 in April 2027?
Budget 2026 said no: the cash ISA limit is to stay £20,000 for all savers over 18. But SI 2026/1018, which sets £12,000 for savers aged 64 or under from 6 April 2027, is still law until regulations reverse it. On 9 November 2026 those regulations had not been made.
Who has to use Making Tax Digital from April 2027?
Sole traders and landlords whose qualifying income for 2025/26 was over £30,000 must use Making Tax Digital for Income Tax from 6 April 2027. The threshold is set by SI 2026/336 reg 27. Those over £50,000 for 2024/25 started in April 2026.
How much is the minimum wage from April 2027?
From 1 April 2027 the National Living Wage for workers aged 21 and over is to be £13.21 an hour, £11.27 for 18 to 20 year olds and £8.31 for 16 to 17 year olds and eligible apprentices, as announced at Budget 2026.
Do pensions count for Inheritance Tax from April 2027?
Yes, for deaths on or after 6 April 2027. Finance Act 2026 brings most unused pension funds and pension death benefits into the value of the estate. This is already law; Finance Bill 2026-27 adds technical changes such as letting a prospective personal representative direct the scheme to pay the tax.