UK Tax Updates

From 6 April 2027, rental income is proposed to be taxed at 24%, 44% and 49% (announced at Budget 2026). See what it could mean for your tax bill.

From 6 April 2027, savings interest outside ISAs is proposed to be taxed at 24%, 44% and 49% (announced at Budget 2026). Your Personal Savings Allowance stays the same.

For deaths from 6 April 2027, most unused pensions count toward Inheritance Tax. Already legislated in Finance Act 2026. See how that could change what your family pays.

From April 2028, electric cars are due to pay eVED at 3p a mile (1.5p for plug-in hybrids). Confirmed policy, but legislation is still pending in Finance Bill 2026-27. Check your yearly cost.

From 1 April 2028, owners of homes in England worth £2m or more pay £2,500 (£2m–£2.5m), £3,500 (to £3.5m), £5,000 (to £5m) or £7,500 (£5m+) a year, rising with CPI from 2029/30. Legislation pending.

Budget 2026 announced the Cash ISA limit will stay at £20,000 from April 2027, not fall to £12,000. Not yet law: reversing regulations are expected in November 2026.

From April 2029, a First Time Buyer ISA will replace the Lifetime ISA for new savers (existing accounts continue): £4,000 a year, 25% bonus up to £20,000, homes up to £450,000. Legislation still needed.

In force from 29 October 2026: a Lifetime ISA withdrawal for an otherwise qualifying first home costing over £450,000 now carries a 20% charge, not 25%. The £450,000 cap is unchanged and all other non-qualifying withdrawals still pay 25%.