Announced tax changes from April 2027
Changes announced by the government that take effect from April 2027 onwards, for sole traders, landlords, private hire drivers and small limited companies. For the rates that apply now, see our tax rates and allowances page.
- These are announcements. Most become law only when Finance Bill 2026-27 or the relevant regulations are passed, and the detail can change before then.
- Figures are for England, Wales and Northern Ireland unless we say otherwise.
- If you are not sure how a change affects you, book a call and we will work it out with you.
Savings and property income
From 6 April 2027, tax on savings and property income is due to rise by 4 percentage points at each rate. Dividend rates are not changing.
| Income type | 2026/27 | From 6 April 2027 (announced) |
|---|---|---|
| Savings income (UK-wide) | 20%, 40%, 45% | 24%, 44%, 49% |
| Property income (England, Wales, NI) | 20%, 40%, 45% | 24%, 44%, 49% |
The rates are shown as basic, higher and additional rate. The property rates apply to individuals and partnerships, which covers most landlords. Scotland and Wales can set their own property rates.
Trading allowance
| Item | 2026/27 | From 6 April 2027 (announced) |
|---|---|---|
| Trading allowance | £1,000 | £3,000 |
| Self Assessment reporting threshold for trading income | £1,000 | £3,000 |
National Insurance 2027/28
Most National Insurance thresholds stay frozen. These three rise from April 2027.
| Item | 2026/27 | 2027/28 (announced) |
|---|---|---|
| Class 1 Lower Earnings Limit | £129 a week | £133 a week |
| Class 2 Small Profits Threshold | £7,105 | £7,355 |
| Class 2 voluntary rate | £3.65 a week | £3.80 a week |
Capital allowances
| Allowance | Now | Change (announced) |
|---|---|---|
| First-year allowance, new and unused, not cars | 40% | 50% for spending on or after 1 January 2027 |
| Writing down allowance, main rate | 14% | 12% from 1 April 2027 for companies and 6 April 2027 for individuals |
| 100% allowance for new zero-emission cars | 100% | Ends 31 March 2027 for companies and 5 April 2027 for individuals |
An accounting period that straddles a change in the writing down allowance uses a blended rate.
Capital Gains Tax
| Item | Now | From 6 April 2027 (announced) |
|---|---|---|
| Business Asset Disposal Relief lifetime limit | £1 million | £500,000 |
The relief rate stays at 18%. Gains above the new limit are taxed at the normal Capital Gains Tax rates.
Mileage allowance
| Item | Now | From 6 April 2027 (announced) |
|---|---|---|
| Approved mileage rate for employees' own cars and vans, over 10,000 business miles | 25p a mile | 35p a mile |
The rate for the first 10,000 business miles stays at 55p a mile.
Minimum wage
| Age or category | From 1 April 2026 | From 1 April 2027 (announced) |
|---|---|---|
| 21 and over (National Living Wage) | £12.71 | £13.21 |
| 18 to 20 | £10.85 | £11.27 |
| Under 18 | £8.00 | £8.31 |
| Apprentice | £8.00 | £8.31 |
Making Tax Digital for Income Tax
| Change | When |
|---|---|
| No late submission penalty points on quarterly updates for people who must join in April 2027 | 2027/28 tax year |
| Qualifying income threshold falls from £30,000 to £20,000 | From 6 April 2028 |
If you join in April 2027, you must still send your quarterly updates before you can file your tax return. Penalties for a late tax return still apply.
This page is general guidance and does not take account of your own circumstances. Tax rates and allowances change, usually each April and after each Budget. Please take advice on your own position before acting on anything here.
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