Tax Allowances 2027/28 — Every UK Tax Allowance and Exemption in One Place
Every UK tax allowance for 2027/28 in one reference page. Personal allowance, ISA allowance, pension annual allowance, CGT exempt amount, dividend allowance, marriage allowance, savings allowance and more.
Tax information is based on HMRC rules for the 2026/27 tax year. Tax rules can change — always verify current rates at GOV.UK. This is not tax advice. Consider consulting a qualified tax adviser for your personal situation.
Contents
Every UK tax allowance for 2027/28 — your quick reference for the year ahead.
Last reviewed: May 2026. All figures reflect confirmed positions. Benefit-linked allowances (e.g. benefit rates) will be updated once the autumn 2026 uprating announcement is made.
Income Tax Allowances — 2027/28
Allowance
Amount
Notes
Personal allowance
£12,570
Frozen until Apr 2031; tapers from £100,000
Marriage allowance
£1,257
10% of personal allowance; basic rate taxpayers only
Blind person’s allowance
£3,070
Added to personal allowance
Trading allowance
£1,000
Self-employment income up to £1,000 tax-free
Property income allowance
£1,000
Rental income up to £1,000 tax-free
Rent-a-room relief
£7,500
Tax-free income from lodger in your main home
Savings and Investment Allowances — 2027/28
Allowance
Amount
Notes
ISA allowance
£20,000
Per person per year; all ISA types combined
Junior ISA (JISA) allowance
£9,000
Per child per year
Lifetime ISA limit
£4,000
Counts within £20,000 total; max £1,000 bonus
Personal Savings Allowance (basic rate)
£1,000
Interest tax-free
Personal Savings Allowance (higher rate)
£500
Interest tax-free
Personal Savings Allowance (additional rate)
£0
No allowance
Dividend allowance
£500
Dividends tax-free; excess taxed at dividend rates
Starting rate for savings
£5,000 at 0%
Only if non-savings income is low
Pension Allowances — 2027/28
Allowance
Amount
Notes
Annual allowance
£60,000
Or 100% of earnings if lower
Money Purchase Annual Allowance (MPAA)
£10,000
Applies after flexible drawdown
Pension Commencement Lump Sum (tax-free)
25%
Capped at £268,275 lifetime
Capital Gains Tax — 2027/28
Allowance
Amount
Notes
Annual exempt amount
£3,000
Per individual; net gains below this are tax-free
CGT rate — basic rate
18%
All asset classes post-Oct 2024
CGT rate — higher/additional rate
24%
All asset classes post-Oct 2024
Inheritance Tax — 2027/28
Allowance
Amount
Notes
Nil-rate band
£325,000
Frozen until Apr 2030
Residence Nil-Rate Band
£175,000
Home to direct descendants; frozen until Apr 2030
Potential combined threshold (couple)
£1,000,000
Both NRB + RNRB transferred
Gifting Exemptions — 2027/28
Exemption
Amount
Annual gift exemption
£3,000 per person
Small gift exemption
£250 per recipient
Wedding gift (to child)
£5,000
Wedding gift (to grandchild)
£2,500
Wedding gift (to other)
£1,000
Normal expenditure out of income
Unlimited (with conditions)
Business Tax Allowances — 2027/28
Allowance
Amount
Notes
Annual Investment Allowance (AIA)
£1,000,000
100% first-year deduction for plant and machinery
Corporation Tax — small profits rate
19%
Profits under £50,000
Corporation Tax — main rate
25%
Profits over £250,000
VAT registration threshold
£90,000
Rolling 12-month turnover
Key Changes for 2027/28
The main confirmed change affecting the 2027/28 allowances is the inclusion of pension funds in the IHT estate from April 2027 — this fundamentally alters inheritance tax planning and the interaction with pension allowances:
Previously, defined contribution pension funds passed outside the estate free of IHT
From April 2027, unused DC pension balances will be included in the estate and subject to 40% IHT above the nil-rate band
This makes the IHT nil-rate band (£325,000) and residence nil-rate band (£175,000 where applicable) more important for pension holders
The pension annual allowance (£60,000) and the interaction with IHT is now a key financial planning consideration
Other allowances — income tax personal allowance (£12,570), dividend allowance (£500), CGT annual exempt amount (£3,000), ISA allowance (£20,000) — remain unchanged and are frozen until April 2031 under current policy.
For a full tax planning overview using these allowances, see the Tax Planning hub.