April 2026 Tax Changes: Every New Rule That Affects Your Money from 6 April

Last updated: 9 May 2026 | Reviewed against official UK guidance where available | Budgeting and Money Tips

April 2026 tax rules affect households differently depending on income type, residence, employment status, investments and whether they complete Self Assessment. This guide should be treated as a GOV.UK check-list, not personalised tax advice.

Personal Allowance and Tax Bands Remain Frozen Until 2028

GOV.UK lists the standard Personal Allowance for 2026/27 as £12,570. For England, Northern Ireland and Wales, GOV.UK lists the basic rate as 20% on taxable income up to £37,700 after allowances, higher rate as 40% from £37,701 to £125,140, and additional rate as 45% over £125,140.

Scotland has different Income Tax bands for some earned income. Personal Allowance can also reduce once adjusted net income is over £100,000. Check GOV.UK or HMRC before estimating your bill.

Current Dividend Tax Rules from 6 April 2026

GOV.UK says the dividend allowance is £500 a year. For dividends above the allowance, GOV.UK lists 2026/27 rates as 10.75% for basic-rate taxpayers, 35.75% for higher-rate taxpayers and 39.35% for additional-rate taxpayers.

You do not pay tax on dividends from shares held in an ISA. Add dividend income to other income to work out the correct tax band, and check whether you need to tell HMRC or complete Self Assessment.

Working From Home Tax Allowance for Employees

GOV.UK says that for the tax year 6 April 2026 to 5 April 2027, employees cannot claim tax relief for working from home. GOV.UK says employees can still check the previous four tax years if they were eligible at the time.

Self-employed people use separate business-expense rules, so do not mix employee working-from-home relief with self-employed expense claims.

Making Tax Digital 2026: Mandatory for More Businesses

GOV.UK says Making Tax Digital for Income Tax applies from 6 April 2026 for sole traders and landlords with qualifying income over £50,000, then over £30,000 from April 2027 and over £20,000 from April 2028.

Those required to use MTD need compatible software to keep digital records, send quarterly updates and submit their tax return. Check GOV.UK’s eligibility tool because exemptions and start dates depend on your circumstances.

Capital Gains Tax Allowance and Rates

GOV.UK lists the 2026/27 Capital Gains Tax annual exempt amount as £3,000 for individuals, personal representatives and trustees for disabled people, and £1,500 for most other trustees.

For gains made from 6 April 2026, GOV.UK says higher and additional-rate taxpayers pay 24% on gains, while basic-rate taxpayers may pay 18% or 24% depending on taxable income and gains. Different rules can apply for reliefs, carried interest, non-residents, trusts and business assets.

National Insurance Rates and Thresholds for 2026/27

National Insurance depends on employment status, category letter and earnings. GOV.UK publishes the current employee, employer and voluntary National Insurance rates and thresholds.

Use payslips, payroll software or GOV.UK calculators rather than a static estimate if you need your exact liability.

How to Check Your Own Tax Position

The cost of April 2026 tax rules depends on income, benefits, savings interest, dividends, gains, pension contributions, residence and whether you are employed, self-employed or a landlord.

• Use GOV.UK for current rates and allowances.
• Check your PAYE tax code, payslip and Personal Tax Account.
• Use HMRC Self Assessment guidance if you have property, self-employment, dividends or gains to report.
• Consider regulated tax or financial advice for complex cases.

Example scenario: checking April 2026 tax changes

A limited company owner, landlord or investor should check each income type separately rather than relying on one simple estimate. Salary, dividends, savings interest, rental income and capital gains can all be taxed differently.

Use GOV.UK rates first, then ask HMRC or a qualified tax adviser if your position includes several income sources, reliefs or residency questions.

Step-by-Step Action Plan for April 2026 Tax Changes

• Check current GOV.UK rates and allowances before estimating your tax.
• Review PAYE tax code, dividend income, savings interest and any capital gains.
• If you are self-employed or a landlord, check whether Making Tax Digital applies and when you need to sign up.
• Keep records and get professional advice if the figures are material or complex.

What to Do Next

Use the official links below as the source of truth. Rules, allowances and reporting requirements can change, and the right action depends on your own tax position.

Frequently Asked Questions

What tax changes apply from April 2026?

Check GOV.UK for the exact rule that applies to your income type. Key checks include Income Tax bands, dividend tax, working-from-home employee relief, Making Tax Digital, Capital Gains Tax and National Insurance.

Are dividend tax rates changing in 2026/27?

GOV.UK lists 2026/27 dividend tax rates above the allowance as 10.75%, 35.75% and 39.35%, depending on Income Tax band.

Do all employees lose working-from-home tax relief in 2026/27?

GOV.UK says employees cannot claim tax relief for working from home for 6 April 2026 to 5 April 2027. Self-employed expense rules are separate.