Round-up
What changed in UK personal finance from April 2026
A primary-source round-up of every UK personal-finance change at the start of the 2026/27 tax year: tax thresholds, NI, ISA allowances, State Pension uprating, the National Living Wage, statutory pay caps, Making Tax Digital and more.
Last reviewed:
| Area | 2025/26 | 2026/27 | What it means |
|---|---|---|---|
| Personal Allowance | £12,570 | £12,570 (frozen) | No change. The Personal Allowance remains frozen until April 2028 under the four-year freeze announced in 2022.Source: HMRC — Income Tax rates |
| Higher rate threshold (E, W, NI) | £50,270 | £50,270 (frozen) | No change in England, Wales or Northern Ireland. Scotland has its own Higher and Top rate thresholds — see the Scottish Government Budget pages.Source: HMRC |
| Additional rate threshold (E, W, NI) | £125,140 | £125,140 | No change. The 45% rate continues to apply above £125,140 of taxable income.Source: HMRC |
| Employee NI main rate (Class 1) | 8% | 8% | Main rate unchanged following the two cuts in 2024. 2% rate above the Upper Earnings Limit remains.Source: HMRC — NI rates |
| Self-employed Class 4 NI | 6% / 2% | 6% / 2% | No change. Class 2 NI was effectively abolished for most self-employed people from April 2024; voluntary Class 2 contributions remain available.Source: HMRC |
| ISA allowance | £20,000 | £20,000 (frozen) | Combined annual ISA allowance unchanged. The Junior ISA allowance also remains at £9,000.Source: HMRC — ISAs |
| Dividend allowance | £500 | £500 | Annual 0% allowance for dividends outside an ISA remains unchanged.Source: HMRC |
| Capital Gains Tax annual exempt amount | £3,000 | £3,000 | The exempt amount remains at £3,000 per person after the cuts in 2023 and 2024.Source: HMRC |
| Pensions — Annual Allowance | £60,000 | £60,000 | No change. Tapered Annual Allowance for very high earners and MPAA (£10,000) remain.Source: HMRC |
| Full new State Pension (weekly baseline) | £221.20 | £230.25 | Uprated April 2025 under the triple lock. Equivalent annual amount around £11,973. The 2026/27 figure follows the next triple-lock review; check gov.uk for the live amount.Source: gov.uk — The new State Pension |
| National Living Wage (21+) | £11.44 | £12.21 | Effective 1 April 2026. National Minimum Wage rates for under-21s and apprentices also increased — see the full table on gov.uk.Source: Low Pay Commission / gov.uk |
| Statutory redundancy weekly pay cap | £700 | £719 | Effective from 6 April 2025 (carries through 2026/27). Service cap of 20 years unchanged. Statutory minimum lump sum based on age and length of service.Source: gov.uk |
| Statutory Maternity / Paternity / Shared Parental Pay | £184.03/week | £187.18/week | Standard rate from April 2026 (paid for up to 33 weeks of SMP after the first 6 weeks at 90% of earnings).Source: gov.uk |
| Statutory Sick Pay | £116.75/week | £118.75/week | Weekly SSP rate from April 2026. The lower earnings limit for eligibility (£123/week in 2025/26) is also uprated annually.Source: gov.uk |
| Child Benefit (eldest/only child) | £25.60/week | £26.05/week | Effective from week commencing 6 April 2026. Additional children rate increases to £17.25/week.Source: HMRC |
| Making Tax Digital for Income Tax | Not yet in force for individuals | In force from 6 April 2026 | Sole traders and landlords with combined gross income above £50,000 now submit quarterly digital updates to HMRC plus an end-of-period statement. Threshold drops to £30,000 from April 2027 and £20,000 from April 2028.Source: HMRC — MTD for Income Tax |
| Pensions and Inheritance Tax | Most unused DC pensions outside the estate | No change yet — change is dated 6 April 2027 (information only) | Unchanged at April 2026, but most unused defined-contribution pension funds become part of the estate for IHT from 6 April 2027. Now is the time to review nominations and expression of wishes.Source: HMRC — Inheritance Tax |
Common questions
- Did the Income Tax thresholds rise in April 2026?
- No. The Personal Allowance (£12,570), the higher rate threshold in England, Wales and Northern Ireland (£50,270) and the additional rate threshold (£125,140) all remain frozen. Scotland sets its own income tax thresholds.
- Has the State Pension gone up?
- The full new State Pension was uprated by 4.1% under the triple lock from April 2025 to £230.25 a week (~£11,973 a year). The 2026/27 figure follows the next triple-lock review; check the live amount on gov.uk.
- What's the biggest change to be aware of?
- For the self-employed and landlords, Making Tax Digital for Income Tax now applies from 6 April 2026 if combined gross income from self-employment and property is above £50,000. Quarterly digital updates plus an end-of-period statement replace the old annual cadence.