6 Apr: Individuals Annual Tax Allowances Renew
6th April 2026
A new financial year comes with the renewal of individuals annual tax allowances. Below is a reminder of the allowances that will be refreshed on 6th April 2026 and which of these can be carried forward if they were not utilised in 2025/26.
Income Tax
- Personal Allowance = £12,570
Note – Please note that your personal allowance is tapered away by £1 for every £2 of adjusted net income that exceeds £100,000.
- Personal Savings Allowance = £1,000
Note – This is reduced to £500 for higher rate taxpayers and to £0 for additional rate taxpayers.
- Dividend Allowance = £500
- Property income allowance = £1,000
- Trading allowance = £1,000
- Rent and Room Relief = £7,500
- Transferable marriage allowance = £1,260
- Venture Capital Trust (relief at 30%/20%) = £200,000
- Enterprise Investment Scheme (relief 30%) = £1,000,000
- Seed EIS (relief 50%) = £200,000
- Pension annual allowance = £60,000
- Subject to taper relief for income over £260,000
Note – Unused allowance from the previous three years can be brought forward and utilised on a first in, first out, basis.
Capital Gains Tax
- Annual Exemption = £3,000
- This allowance is reduced to £1,500 for Trusts, and reduced further for each trust a settlor has set up.
Note – These allowances are a “use or lose” allowance and therefore cannot be carried forward.
Inheritance Tax
- Nil Rate Band = £325,000
- Residence Nil Rate Band = £175,000
- Subject to a taper for estates valued over £2m
- Annual Gift exemption = £3,000
Note – If the previous year’s £3,000 exemption limit had not been used then this can be carried forward and used in the 1st subsequent year only.
Other
- ISA = £20,000
Note – Overall total annual limit of payments in to all types of ISA in any given tax year.
- Junior ISA = £9,000
- Lifetime ISA = £4,000
Note – Changes to ISA allowances coming into effect from April 2027. Cash ISA limit reduced to £12,000 from £20,000.
Get In Touch
Disclaimer – Please note that some of the allowances listed above have niche conditions that need to be satisfied in order to qualify. Please therefore contact your usual Whitings representative or local Whitings office who will be happy to ensure that these apply to your circumstances.
With this in mind, we at Whitings, would like to wish you all a prosperous 2026/27 Tax Year.
Disclaimer - All information in this post was correct at time of writing.
