Income-tax and NIC thresholds

The personal allowance, higher-rate threshold & additional-rate threshold remain frozen. The freeze applies (per the Budget) up to at least April 2031 for income tax thresholds

Dividend income tax rates

From 6 April 2026 dividends will be taxed at 2 percentage points higher across all bands (basic to 10.75%, higher to 35.75%, additional to 41.35%)

Savings Tax

from April 2027, savings income will be taxed at 2 percentage points higher across all bands (basic to 22%, higher to 42%, additional to 47%)

ISAs remain tax-free but the annual cash ISA allowance will be reduced to £12,000 for savers and under 65’s

Lifetime ISA and Junior ISA limits remain unchanged

Property (rental / property-income) income tax regime

From April 2027 there will be a separate property-income tax schedule. The “property basic rate” will be 22%, “property higher rate” 42%, “property additional rate” 47%. This applies to rental profits, after allowable expenses

National Insurance on salary-sacrifice pension contributions

For pension contributions via salary sacrifice above £2,000 per year, NIC exemption ends from April 2029, i.e. the excess will be treated as ordinary earnings, subject to NICs

High-value property surcharge (mansion-type levy / council-tax surcharge)

From April 2028, a surcharge will apply to residential properties worth £2 million or more on council tax and stamp duty.

Business-Asset Disposal & related reliefs (for when selling a business or assets)

From 6 April 2026: the reduced-rate regime (formerly generous for “entrepreneurs/business disposal reliefs”) will be revised (less generous)

Rules on pension-pots & Inheritance Tax (IHT)

From April 2027, unspent pension pots which were previously exempt may now be within the scope of IHT

Minimum/National Living Wage increase

Full-time workers on the NLW will see a rise from April 2026

Corporation tax

25% headline rate remains frozen

What This Means (for clients like self-employed, landlords, directors etc.)

Clients relying on dividends or rental income will face higher tax bills once the new rates kick in (2026–2027), reducing net income compared with previous years.

Clients using salary-sacrifice pension contributions heavily should review their pension/NI planning — after 2029 the NI benefit above £2,000 contribution per year disappears.

Landlords/property investors should consider impact of new property-income tax rates from 2027, and potential surcharge if properties are high value.

Anyone considering selling a business or shares, or exit plans, should review timing given the changes to disposal reliefs after April 2026.

Those holding pensions/pension savings for estate planning may need to re-evaluate their long-term plans (because of the new IHT inclusion).

Key Dates to know

Date	Change
April 2026	Dividend tax increase, less generous Business Asset Disposal Relief
April 2026	Minimum/National Living Wage rises
April 2027	Savings income tax +2%, separate property income tax schedule
April 2028	High-value property council-tax surcharge applies
April 2029	NIC exemption ends for salary-sacrifice pension contributions above £2,000/year