New Tax Year

The 2025/26 tax year comes to an end on 5 April 2026 and the 2026/27 tax year begins on 6 April 2026.

For 2026/27, the income tax rates and thresholds are unchanged. The basic rate remains at 20%, the higher rate at 40% and the additional rate at 45%. The personal allowance remains at £12,570. However, it continues to be reduced by £1 for every £2 by which adjusted net income exceeds £100,000 being lost entirely once income reaches £125,140.

From 6 April 2026, the ordinary dividend rate (which applies dividends falling within the basic rate band) rises to 10.75% and the dividend upper rate (which applies to dividends falling within the higher rate band) rises to 35.75%. The dividend additional rate (which applies to dividends falling within the additional rate band) remains at 39.35%.