The 2026/27 tax year is approaching at a time when many firms are under increasing pressure to deliver accurate, timely, and transparent tax reporting for investors.
For wealth managers and financial advisers, this increases the importance of understanding how tax rules interact across income, capital gains, dividends, and savings. For investment platforms and back-office tax teams, it places greater emphasis on data quality, calculation accuracy, and the ability to apply tax rules consistently at scale.
This guide summarises the key UK tax rates, thresholds, and allowances for the 2026/27 tax year, highlighting the areas that matter most for good investor outcomes and client reporting.
Income Tax
The UK personal allowance remains frozen at £12,570 for the 2026/27 tax year. It will continue to be reduced by £1 for every £2 of income earned over £100,000, meaning it is fully withdrawn once income exceeds £125,140.
With the threshold unchanged, fiscal drag will continue to bring more individuals into higher tax bands.
Income tax rates for England, Wales and Northern Ireland remain at:
- 20% on taxable income up to £50,270
- 40% on taxable income from £50,271 to £125,140
- 45% on taxable income over £125,140.
Scottish income tax rates and bands differ and should be considered separately.
The rates in Scotland are:
- 19% on taxable income between £12,571 to £16,537
- 20% on taxable income between £16,538 to £29,526
- 21% on taxable income between £29,527 to £43,662
- 42% on taxable income between £43,663 to £75,000
- 45% on taxable income between £75,001 to £125,140
- 48% on taxable income over £125,140
Capital Gains Tax
The annual exemption amount for capital gains tax remains at £3,000 for individuals and £1,500 for trusts.
Rates remain unchanged at:
- 18% for basic rate taxpayers
- 24% for higher and additional rate taxpayers
The rate for residential property disposal remains at 24%.
From 6 April 2026, carried interest will sit entirely within the Income Tax framework. As a result, CGT will no longer be chargeable for carried interest in the 2026/27 tax year.
Dividend Tax
The rates for dividend have seen a small change this coming tax year, with the ordinary and upper rates rising by 2%.
The dividend tax-free allowance remains at £500 for the 2026/27 tax year, while the ordinary and upper rates of dividend tax rise by 2%:
- Ordinary rate rises to 10.75% from 8.85%
- Upper rate rises to 35.75% from 33.75%
- Additional rate remains at 39.35%
Rising dividend rates, combined with a low tax-free allowance, increase sensitivity to calculation accuracy and data quality, particularly where clients hold income-generating portfolios.
Savings Tax
The Personal Savings Allowance remains unchanged:
- £1,000 for basic rate taxpayers
- £500 for higher rate taxpayers
- No allowance for additional rate taxpayers.
Savings income continues to be taxed at 20%, 40% and 45%, in line with income tax bands. As thresholds remain frozen, more individuals are likely to exceed their allowances, increasing reporting complexity.
Changes to Individual Savings Accounts (ISAs)
The overall ISA allowance remains at £20,000 for the 2026/27 tax year. However, this will be the final year in which individuals of any age can allocate the full £20,000 to a Cash ISA.
From April 2027, individuals under 65 will be limited to £12,000 in a Cash ISA while individuals aged 65 and over will retain the full £20,000 Cash ISA allowance.
The government has positioned this change as a measure to encourage greater retail investment, citing low UK participation rates compared with other G7 countries.
What this means for wealth managers, advisers and investment platforms
While many headline rates remain unchanged, continued fiscal drag, compressed allowances, and structural changes (such as carried interest) place greater pressure on accurate tax calculation, reporting, and client communication.
For firms operating at scale, ensuring tax logic is applied consistently across portfolios, wrappers, and income types will be critical as the 2026/27 tax year approaches.
Our award-winning tax software, CGiX, adapts to the evolving UK tax environment, ensuring every calculation reflects current rates and allowances so your teams can reduce manual effort, operational risk and reporting pressure across your business.