Tax Tables (A-D)
Income Tax Rates and Allowances (Table A)
| Main Allowances | 2027/28 | 2026/27 |
|---|---|---|
| Personal Allowance (PA)*† | £12,570 | £12,570 |
| Pensions Tax Allowance (PTA)** | 13,037 | N/A |
| Blind Person's Allowance | 3,370 | 3,250 |
| Rent-a-room Relief § | 7,500 | 7,500 |
| Trading Income Allowance § | 3,000 | 1,000 |
| Property Income Allowance § | 1,000 | 1,000 |
*PA will be withdrawn at £1 for every £2 by which ‘adjusted income’ exceeds £100,000. There will therefore be no allowance given if adjusted income is £125,140 or more.
†£1,260 of the PA can be transferred to a spouse or civil partner who is no more than a basic rate taxpayer, where both spouses were born after 5 April 1935.
** The PTA gives a 20% tax credit on state pension income above £12,570. It is withdrawn at £1 for every £3 of income above £13,037 and is therefore fully removed at income of £13,319
§ If gross income exceeds this, the limit may be deducted instead of actual expenses.
| Rate Bands | 2027/28 | 2026/27 |
|---|---|---|
| Basic Rate Band (BRB) | £37,700 | £37,700 |
| Higher Rate Band (HRB) | 37,701-125,140 | 37,701-125,140 |
| Additional Rate (AR) | over 125,140 | over 125,140 |
| Personal Savings Allowance (PSA) | ||
| – Basic rate taxpayer | 1,000 | 1,000 |
| – Higher rate taxpayer | 500 | 500 |
| Dividend Allowance (DA) | 500 | 500 |
BRB and AR threshold are increased by allowable personal pension contributions and Gift Aid donations.
| Tax Rates | 2027/28 | 2026/27 | ||||
|---|---|---|---|---|---|---|
| Rates differ for General, Property, Savings and Dividend income within each band: | ||||||
| G % |
P&S % |
D % |
G % |
P&S % |
D % |
|
| Basic | 20 | 24 | 10.75 | 20 | 20 | 10.75 |
| Higher | 40 | 44 | 35.75 | 40 | 40 | 35.75 |
| Additional | 45 | 49 | 39.35 | 45 | 45 | 39.35 |
From 2027/28, personal allowance, basic rate band and higher rate band are allocated against income in the following order: General income (e.g. salary, pensions, business profits), property income, savings income (mainly interest), then dividends.
To the extent that savings income falls in the first £5,000 of the basic rate band, it is taxed at nil rather than 24% (2026/27: 20%).
The PSA taxes interest at nil, where it would otherwise be taxable at 24% or 44% (2026/27: 20% or 40%).
The DA taxes the first £500 of dividend income at nil, rather than the rate that would otherwise apply.
| Income Tax – Scotland | 2026/27 | |
|---|---|---|
| Rate | Band | |
| Starter Rate | 19% | £3,967 |
| Basic Rate | 20% | 3,968 – 16,956 |
| Intermediate Rate | 21% | 16,957 – 31,092 |
| Higher Rate | 42% | 31,093 – 62,430 |
| Advanced Rate | 45% | 62,431 – 125,140 |
| Top Rate | 48% | over 125,140 |
The Scottish rates and bands do not apply for savings and dividend income, which are taxed at normal UK rates. The Scottish rates for 2027/28 are expected to be announced in the Scottish Budget on 3 December 2026. From 2026/27, The Scottish Government can set its own property tax rates.
High Income Child Benefit Charge (HICBC)
1% of child benefit for each £200 of adjusted net income between £60,000 and £80,000.
Making Tax Digital Income Tax (MTD IT) (Table B)
| Reporting period (2027/28) | Reporting deadline |
|---|---|
| 6 April to 5 July | 7 August 2027 |
| 6 April to 5 October | 7 November 2027 |
| 6 April to 5 January | 7 February 2028 |
| 6 April to 5 April | 7 May 2028 |
From 6 April 2027, self-employed traders and landlords with qualifying income of £30,000 or more are mandated into MTD.
Registered Pensions (Table C)
| 2027/28 | 2026/27 | |
|---|---|---|
| Annual Allowance (AA) | £60,000 | £60,000 |
Annual relievable pension inputs are the higher of earnings (capped at AA) or £3,600.
The AA is usually reduced by £1 for every £2 by which relevant income exceeds £260,000, down to a minimum AA of £10,000.
The AA can also be reduced to £10,000, where certain pension drawings have been made.
The maximum tax-free pension lump sum is £268,275 (25% of £1,073,100), unless a higher amount is “protected”.
Car and Fuel Benefits (Table D)
Cars
Taxable benefit: List price multiplied by chargeable percentage.
| CO2 emissions g/km |
Electric range Miles |
2027/28 % |
2026/27 % |
|---|---|---|---|
| 0 | N/A | 5 | 4 |
| 1-50 | >130 | 5 | 4 |
| 1-50 | 70 - 129 | 8 | 7 |
| 1-50 | 40 - 69 | 11 | 10 |
| 1-50 | 30 - 39 | 15 | 14 |
| 1-50 | <30 | 17 | 16 |
| 51-54 | N/A | 18 | 17 |
| 55-59 | N/A | 19 | 18 |
| 60-64 | N/A | 20 | 19 |
| 65-69 | N/A | 21 | 20 |
| 70-74 | N/A | 21 | 21 |
| 75-79 | N/A | 21 | 21 |
Then a further 1% for each 5g/km CO2 emissions, up to a maximum of 37%. Diesel cars that are not RDE2 standard suffer a 4% supplement on the above figures but are still capped at 37%.
A car is deemed to have a nominal emissions figure of 1 where the following conditions are met:
- Vehicle was first registered on or after 1 January 2025
- Vehicle’s actual emissions figure is 51 or more
- Vehicle was registered under any emission standard other than Euro 6d-ISC-FCM or Euro 6e
- Car’s electric range figure is 1 or more.
Car Fuel
Where employer provides fuel for private motoring in an employer-owned car, the CO2-based percentage from the above table is multiplied by £30,200 in 2027/28 (£29,200 in 2026/27).