Tax / UK allowances
Tax-free allowances, 2026 to 2027.
What you can receive, save or give away this tax year before tax is due on dividends, savings interest, ISAs, pensions, gains and gifts.
What each one is.
01 / Allowances| Allowance | Amount | What it is | Source | Checked |
|---|---|---|---|---|
| Dividend allowance | £500 | Dividends you can receive each year without paying tax on them, on top of your Personal Allowance. | Tax on dividends (GOV.UK) | |
| Starting rate for savings | £5,000 | Savings interest you can earn tax-free if your other income is low enough. | Tax on savings interest (GOV.UK) | |
| Personal Savings Allowance | £1,000 | Savings interest a basic rate taxpayer can earn tax-free. It is lower for higher rate taxpayers. | Tax on savings interest (GOV.UK) | |
| ISA allowance | £20,000 | The most you can pay into ISAs in the tax year, across all your accounts. | Individual Savings Accounts (GOV.UK) | |
| Lifetime ISA limit | £4,000 | The most you can pay into a Lifetime ISA in the tax year. It counts towards the ISA allowance. | Individual Savings Accounts (GOV.UK) | |
| Pension annual allowance | £60,000 | The most that can go into your pensions in a year before a tax charge, for most people. | Tax on your private pension contributions (GOV.UK) | |
| Pension tax-free lump sum | £268,275 | The most you can usually take tax-free from pensions over your lifetime. | Tax on your private pension contributions (GOV.UK) | |
| Capital Gains Tax allowance | £3,000 | Gains you can make in the tax year before paying Capital Gains Tax. It is lower for trusts. | Capital Gains Tax (GOV.UK) | |
| Inheritance Tax threshold | £325,000 | The part of an estate that passes tax-free. Anything above it is taxed unless it goes to a spouse, civil partner or charity. | Inheritance Tax (GOV.UK) | |
| Inheritance Tax threshold with a home left to children | £500,000 | The higher threshold when a home goes to children or grandchildren and the estate is under a limit. | Inheritance Tax (GOV.UK) | |
| Gifts you can give each year | £3,000 | Gifts you can give away in a tax year without them counting towards Inheritance Tax. | Inheritance Tax (GOV.UK) |
- These are the general figures. Your own allowance can be lower or different: for example, the Personal Savings Allowance is lower for higher rate taxpayers and nil for additional rate, and the pension annual allowance tapers for high earners.
- The allowances are for a tax year, which runs from 6 April to 5 April. Most stay the same for years and change when the government says so.
- This is general information, not tax advice. To see what a salary leaves after tax, use the take-home pay calculator, and for a married couple, the Marriage Allowance check.
Data sources
- Tax on dividends (GOV.UK). Contains public sector information licensed under the Open Government Licence v3.0.
- Capital Gains Tax (GOV.UK). Contains public sector information licensed under the Open Government Licence v3.0.
- Inheritance Tax (GOV.UK). Contains public sector information licensed under the Open Government Licence v3.0.
- Individual Savings Accounts (GOV.UK). Contains public sector information licensed under the Open Government Licence v3.0.
- Tax on savings interest (GOV.UK). Contains public sector information licensed under the Open Government Licence v3.0.
- Tax on your private pension contributions (GOV.UK). Contains public sector information licensed under the Open Government Licence v3.0.