This page sets out the principal tax allowances, reliefs and exemptions available to UK taxpayers for the 2026/27 tax year, which runs from 6 April 2026 to 5 April 2027. Most allowances are annual: they reset each tax year and cannot be carried forward unless the rules specifically allow it. Vision Consulting advises individuals and businesses on applying these to their specific position, from initial analysis through to implementation and filing.

The Personal Allowance — the amount you can earn before income tax applies — is £12,570 for 2026/27. It has been frozen at this level since April 2022 and is due to remain so until April 2031. For taxpayers with adjusted net income above £100,000, the allowance reduces by £1 for every £2 above that threshold and is withdrawn entirely at £125,140. Income tax rates above the Personal Allowance are 20% (basic rate, income up to £50,270), 40% (higher rate, £50,270 to £125,140), and 45% (additional rate, above £125,140). Scotland operates separate bands.

The Personal Savings Allowance — the amount of interest from savings you can receive tax-free — is £1,000 for basic rate taxpayers and £500 for higher rate taxpayers. Additional rate taxpayers receive no savings allowance. The Dividend Allowance is £500 for 2026/27; dividend income above this figure is taxed at 10.75% (basic rate), 35.75% (higher rate), or 39.35% (additional rate). The Marriage Allowance permits a non-taxpayer or basic rate taxpayer to transfer up to £1,260 of unused Personal Allowance to their spouse or civil partner, subject to eligibility conditions.

Vision Consulting's qualified staff are able to review a client's full tax position before identifying which allowances are already being used, which are not, and where reliefs require a specific action to claim. The firm works across the full range covered on this page — income tax, capital gains, inheritance tax, pension allowances, business reliefs, and investment schemes — and handles both the advisory and the filing.

For complex or higher-value matters, senior members of the team are directly involved. Vision Consulting is regulated by the ICAEW and holds the audit registration, which informs how it approaches compliance-sensitive work.

A higher earner with adjusted net income of £110,000 sees their Personal Allowance reduced by £5,000 — £1 for every £2 above £100,000 — leaving an effective tax-free amount of £7,570. This produces a marginal tax rate on income between £100,000 and £125,140 that is higher than the standard 40% higher rate, because each pound earned withdraws personal allowance as well as attracting income tax. A pension contribution or qualifying charitable donation that reduces adjusted net income back to £100,000 or below restores the full Personal Allowance. The precise tax outcome depends on the individual's complete tax position and should be reviewed with an adviser.

The Pension Annual Allowance — the maximum you can contribute to a registered pension scheme with tax relief in a given year — is £60,000, or 100% of earnings if lower. Unused allowance from the previous three tax years can be carried forward if you were a member of a registered pension scheme in those years. The Lifetime Allowance was abolished from April 2024.

The ISA allowance is £20,000 per tax year; interest, dividends and capital gains within an ISA are not subject to tax. From 6 April 2027, the Cash ISA sub-limit for under-65s reduces to £12,000 within the overall £20,000. The remaining £8,000 must be allocated to other types of ISAs, such as Stocks & Shares or Innovative Finance ISAs.

For businesses, the Annual Investment Allowance (AIA) provides 100% first- year tax relief on qualifying plant and machinery purchases up to £1,000,000.

The CGT Annual Exempt Amount is £3,000 for individuals and £1,500 for most trusts. CGT rates on most assets from October 2024 are 18% (basic rate taxpayers) and 24% (higher and additional rate taxpayers).

The Enterprise Investment Scheme (EIS) offers 30% income tax relief on qualifying investments up to £1,000,000 per tax year (£2,000,000 for knowledge-intensive companies). The Seed Enterprise Investment Scheme (SEIS) offers 50% income tax relief on qualifying investments up to £200,000. Eligible employers can reduce their National Insurance liability by up to £10,500 per year through the Employment Allowance; director-only companies do not qualify.

Business Asset Disposal Relief (BADR) reduces CGT to 18% on qualifying business disposals, subject to a £1,000,000 lifetime limit on gains.

If you are a business owner, director, or higher earner and want to understand which of these allowances apply to your current position, contact Vision Consulting for an initial consultation. Our chartered accountants can review your tax position across all relevant reliefs and advise on the appropriate next steps.