Tax Year 2026/27: Key updates and what they mean for your planning

We are pleased to share our Tax Tables for the 2026/27 tax year, reflecting the latest measures announced in the Autumn Budget, the Scottish Budget, and subsequent government updates.

With the government’s shift from spring to autumn Budgets, the timing of major fiscal announcements has changed. However, one date remains constant: 6 April, the start of the new tax year. This is when a range of important tax changes — and some notable non‑changes — take effect. Understanding these adjustments is essential for effective tax and financial planning.

What’s changing in 2026/27

A number of updates will influence individuals, investors, and business owners alike. The most significant include:

• Personal tax thresholds Most personal allowances and thresholds remain frozen, with the exception of adjustments to the Scottish starter and basic rate bands.
• Dividend taxation Dividend tax rates will rise by two percentage points for both basic and higher‑rate taxpayers, increasing the overall tax burden on investment income.
• Capital Gains Tax The CGT rate applied to disposals qualifying for Business Asset Disposal Relief will increase from 14% to 18%, reducing the net benefit for those selling eligible business assets.
• Inheritance Tax reliefs Agricultural and business property reliefs will now be capped at a combined £2,500,000 at the 100% rate. Any value above this threshold will attract relief at 50%. Importantly, these allowances remain transferable between surviving spouses and civil partners.
• Venture Capital Trust (VCT) incentives Income tax relief on investments in new VCT shares will fall from 30% to 20%, although the size of qualifying companies will double, potentially broadening investment opportunities.
• Company car taxation The taxable benefit on zero‑emission vehicles will rise to 4%, continuing the gradual increase in benefit‑in‑kind rates.
• ISA allowances The overall ISA limit remains at £20,000 for now, ahead of planned changes next year to the cash ISA threshold for individuals under 65.
• Other taxes Stamp Duty, Corporation Tax, and VAT rates remain unchanged for the coming year.

Supporting Your Planning

The start of a new tax year is always a valuable moment to review your financial position. If you have questions about the new Tax Tables or would like to understand how these changes may affect your personal planning, we encourage you to get in touch. Our Trust & Tax team are here to help you navigate the year ahead with clarity and confidence.