Finley

UK money rules

Rates, allowances and policy changes for UK savers, investors and homeowners, taken from official sources. Updated 10 September 2026.

Rates

Bank Rate

3.75%

Since 18 December 2025, down from 4%

Checked 10 September 2026 · Bank of England

Inflation (CPI)

2.9%

12 months to July 2026

Checked 10 September 2026 · ONS

Instant access savings

2.07%

Average rate, August 2026

Checked 10 September 2026 · Bank of England

Average mortgage rates

2-year fixed, 60% LTV4.79%
2-year fixed, 75% LTV4.92%
2-year fixed, 90% LTV5.16%
2-year fixed, 95% LTV5.52%
3-year fixed, 75% LTV4.77%
5-year fixed, 75% LTV4.78%
2-year variable, 75% LTV4.23%
Revert-to rate (SVR)6.58%

August 2026 · Checked 10 September 2026 · Bank of England

Energy price cap

ElectricityGasTypical year
Now1 July 2026 – 30 September 2026 26.11p57.19p/day 7.33p29.04p/day
Next1 October 2026 – 31 December 2026 26.32p54.83p/day 7.97p29.68p/day £1,723

Average for England, Scotland and Wales, paying by Direct Debit. Figures are rounded to two decimal places and include 5% VAT on gas. There is no VAT on electricity from 1 October 2026 to 31 March 2027.

Checked 10 September 2026 · Ofgem

Coming up

  1. 1 October 2026

    VAT on domestic electricity cut from 5% to 0% Law

    VAT on domestic electricity is 0% instead of 5% for supplies from 1 October 2026 to 31 March 2027. Northern Ireland keeps the 5% reduced rate.

    Domestic electricity customers in England, Scotland and Wales · Announced 21 July 2026 · Source Source 2

  2. 28 October 2026

    Autumn Budget 2026 date confirmed Announced

    The next UK Budget is on Wednesday 28 October 2026, with an OBR forecast. Tax and benefit changes may be announced then.

    Everyone · Announced 31 July 2026 · Source

  3. 6 April 2027

    Cash ISA reform: lower limit for under-65s, anti-circumvention rules Announced

    From 6 April 2027, the Cash ISA limit falls to £12,000 for under-65s (over-65s keep £20,000); the £20,000 overall ISA limit is unchanged. A 22% charge applies to interest on cash held in non-cash ISAs, and transfers from non-cash to cash ISAs stop.

    Cash ISA savers under age 65; stocks & shares/innovative finance ISA holders who hold cash within those accounts · Announced 26 November 2025 · Source Source 2 Source 3

  4. 6 April 2027

    Unused pension funds and death benefits brought into Inheritance Tax Law

    From 6 April 2027, most unused (uncrystallised) pension funds and pension death benefits count toward the deceased's estate for Inheritance Tax. Death-in-service benefits and assets passing to a spouse/civil partner are excluded.

    Estates of pension holders who die on or after 6 April 2027 with unused defined-contribution pension funds or certain death benefits · Announced 30 October 2024 · Source

  5. 6 April 2027

    Separate income tax rates for property income from April 2027 Law

    From 6 April 2027, property income is taxed at its own rates: 22% basic, 42% higher and 47% additional.

    Landlords and individuals with rental income in England, Wales & NI · Announced 26 November 2025 · Source Source 2

  6. 6 April 2027

    Tax on savings interest rises by 2 points from April 2027 Law

    From 6 April 2027, tax on savings interest above your allowances rises to 22% (basic), 42% (higher) and 47% (additional).

    Savers with taxable interest income above their Personal Savings Allowance and starting rate for savings band · Announced 26 November 2025 · Source Source 2

  7. 1 April 2028

    New Electric Vehicle Excise Duty (pay-per-mile) from April 2028 Law

    From April 2028, electric and plug-in hybrid cars pay a per-mile charge on top of Vehicle Excise Duty: 3p a mile for fully electric cars and 1.5p for plug-in hybrids, rising with CPI.

    Owners of electric and plug-in hybrid cars · Announced 26 November 2025 · Source

  8. 1 April 2028

    New High Value Council Tax Surcharge on £2m+ homes Announced

    Autumn Budget 2025 announced a new annual surcharge, from £2,500 to £7,500, on owners of English homes worth £2 million or more, starting April 2028, collected by councils but retained by central government.

    Owners (not occupiers) of English residential property valued at £2m+ (fewer than 1% of properties) · Announced 26 November 2025 · Source

  9. 6 April 2028

    Income tax and National Insurance threshold freeze extended to 2030-31 Law

    The personal allowance (£12,570), higher rate threshold (£50,270), additional rate threshold (£125,140) and linked National Insurance thresholds stay frozen until 5 April 2031, three years longer than previously set.

    Income taxpayers and National Insurance payers · Announced 26 November 2025 · Source

  10. 6 April 2028

    Normal minimum pension age rises from 55 to 57 Law

    From 6 April 2028, the earliest age most people can access private/workplace pensions without a tax charge rises from 55 to 57. Uniformed public service schemes and some protected members are excluded.

    Pension savers not covered by a protected pension age or uniformed-service scheme · Announced 11 February 2021 · Source

  11. 6 April 2029

    Cap on National Insurance relief for salary sacrifice pension contributions Law

    From April 2029, only the first £2,000/year of salary-sacrificed pension contributions is exempt from NICs; amounts above that are treated as ordinary earnings and taxed with NICs.

    Employees and employers using salary sacrifice for pension contributions · Announced 26 November 2025 · Source

  12. 6 April 2030

    IHT nil-rate band and residence nil-rate band freeze extended to 2030-31 Law

    Autumn Budget 2025 extended the freeze on the £325,000 nil-rate band and £175,000 residence nil-rate band (plus its £2m taper start and the £1m 100% agricultural/business property relief allowance) by one further year, to 5 April 2031.

    All estates subject to Inheritance Tax · Announced 26 November 2025 · Source

  13. Date not set

    Lifetime ISA to be replaced by new First Time Buyer ISA Announced

    Government is consulting (responses due 18 Aug 2026) on replacing the LISA with a First Time Buyer ISA that drops the 25% unauthorised-withdrawal penalty; property price cap, contribution limits and bonus rate are not yet decided.

    First-time buyers currently using or considering a Lifetime ISA · Announced 26 November 2025 · Source

Rules and allowances

Income Tax15
RuleNowNext
Personal allowance£12,570£12,570 from 6 April 2027 · Law
Income limit for personal allowance (taper starts)£100,000
Basic rate band upper limit (England, Wales & NI)England, Wales & NI£37,700
Basic rate (England, Wales & NI)England, Wales & NI20%
Higher rate threshold, gross income (England, Wales & NI)England, Wales & NI£50,270
Higher rate (England, Wales & NI)England, Wales & NI40%
Additional rate threshold, gross income (England, Wales & NI)England, Wales & NI£125,140
Additional rate (England, Wales & NI)England, Wales & NI45%
Starter rate (Scotland)Scotland19%
Basic rate (Scotland)Scotland20%
Intermediate rate (Scotland)Scotland21%
Higher rate (Scotland)Scotland42%
Advanced rate (Scotland)Scotland45%
Top rate (Scotland)Scotland48%
Marriage allowance transfer amount£1,260
National Insurance8
RuleNowNext
Class 1 employee primary threshold£12,570
Class 1 employee upper earnings limit£50,270
Class 1 employee main rate (between PT and UEL)8%
Class 1 employee rate above UEL2%
Class 4 (self-employed) lower profits limit£12,570
Class 4 (self-employed) upper profits limit£50,270
Class 4 (self-employed) main rate6%
Class 4 (self-employed) rate above UPL2%
Dividends4
RuleNowNext
Dividend allowance£500
Dividend tax rate (basic rate)10.75%
Dividend tax rate (higher rate)35.75%
Dividend tax rate (additional rate)39.35%
Capital Gains Tax4
RuleNowNext
CGT annual exempt amount£3,000
CGT rate for basic rate taxpayers (most assets)18%
CGT rate for higher/additional rate taxpayers (most assets)24%
CGT rate for Business Asset Disposal Relief18%
Inheritance Tax2
RuleNowNext
Inheritance Tax nil-rate band£325,000
Inheritance Tax residence nil-rate band£175,000
ISAs9
RuleNowNext
ISA overall annual subscription limit£20,000
Lifetime ISA annual contribution limit£4,000
Lifetime ISA government bonus25%
Lifetime ISA — must open/first pay in before age40 years
Lifetime ISA — can contribute until age50 years
Lifetime ISA unauthorised withdrawal charge25%
Junior ISA annual subscription limit£9,000
Cash ISA annual limit for savers under 65 (post-reform)Not yet in effect£12,000 from 6 April 2027 · Announced
Cash ISA annual limit for savers aged 65+ (post-reform)Not yet in effect£20,000 from 6 April 2027 · Announced
Savings7
RuleNowNext
Personal savings allowance (basic rate)£1,000
Personal savings allowance (higher rate)£500
Personal savings allowance (additional rate)£0
Starting rate for savings band£5,000
Savings income tax rate (basic rate)20%22% from 6 April 2027 · Law
Savings income tax rate (higher rate)40%42% from 6 April 2027 · Law
Savings income tax rate (additional rate)45%47% from 6 April 2027 · Law
Pensions15
RuleNowNext
Pension annual allowance£60,000
Tapered annual allowance - threshold income limit£200,000
Tapered annual allowance - adjusted income limit£260,000
Tapered annual allowance - minimum (floor)£10,000
Money purchase annual allowance (MPAA)£10,000
Lump sum allowance (LSA)£268,275
Lump sum and death benefit allowance (LSDBA)£1,073,100
Annual allowance carry-forward period3 years
Normal minimum pension age55 years57 years from 6 April 2028 · Law
Salary sacrifice pension employer/employee NICs relief capNot yet in effect£2,000 from 6 April 2029 · Law
Automatic enrolment earnings trigger£10,000
Qualifying earnings band - lower limit£6,240
Qualifying earnings band - upper limit£50,270
Automatic enrolment minimum employer contribution3%
Automatic enrolment minimum total contribution8%
State Pension8
RuleNowNext
New State Pension - full weekly rate£241.30 a week
Basic State Pension - full weekly rate (Category A/B)£184.90 a week
State Pension uprating percentage 2026-27 and reason4.8%
Qualifying years needed for full new State Pension35 years
Minimum qualifying years for any new State Pension10 years
State Pension age rise to 67 - transition start date6 May 2026
State Pension age rise to 67 - completion dateNot yet in effect6 March 2028 from 6 March 2028 · Law
State Pension age rise to 68 - legislated windowNot yet in effect2044-2046 from 1 May 2044 · Law
Benefits11
RuleNowNext
Child Benefit - eldest/only child weekly rate£27.05 a week
Child Benefit - each additional child weekly rate£17.90 a week
High Income Child Benefit Charge - lower (adjusted net income) threshold£60,000
High Income Child Benefit Charge - upper threshold (full charge)£80,000
Universal Credit standard allowance - single, under 25£338.58 a month
Universal Credit standard allowance - single, 25 or over£424.90 a month
Universal Credit standard allowance - couple, both under 25£528.34 a month
Universal Credit standard allowance - couple, one or both 25+£666.97 a month
Universal Credit work allowance - no housing element claimed£710 a month
Universal Credit work allowance - housing element claimed£427 a month
Universal Credit taper rate55%
Student loans7
RuleNowNext
Student loan Plan 1 repayment threshold£26,900
Student loan Plan 2 repayment threshold£29,385
Student loan Plan 4 (Scotland) repayment threshold£33,795
Student loan Plan 5 repayment threshold£25,000
Postgraduate Loan repayment threshold£21,000
Student loan repayment rate - Plans 1, 2, 4, 59%
Student loan repayment rate - Postgraduate Loan6%
Property10
RuleNowNext
SDLT nil-rate threshold (standard residential, single property)England & NI£125,000
SDLT first-time buyer relief nil-rate thresholdEngland & NI£300,000
SDLT first-time buyer relief maximum property priceEngland & NI£500,000
SDLT higher rate surcharge for additional dwellingsEngland & NI5%
SDLT non-UK resident surchargeEngland & NI2%
LBTT nil-rate threshold (standard residential)Scotland£145,000
LBTT first-time buyer relief nil-rate thresholdScotland£175,000
LBTT Additional Dwelling Supplement (ADS) rateScotland8%
LTT nil-rate threshold (main residential rates)Wales£225,000
Lifetime ISA maximum property price for first-home withdrawal£450,000
Consumer protection2
RuleNowNext
FSCS deposit protection limit per person per firm£120,000
FSCS investment protection limit per person per firm£85,000
Regulation2
RuleNowNext
Consumer Duty in-force date for open products and services31 July 2023
Consumer Duty in-force date for closed products and services31 July 2024

Changed in the last year

  1. 6 April 2026

    Two-child limit removed from Universal Credit In force

    The Universal Credit child element two-child limit is abolished from 6 April 2026, so the child element is paid for all qualifying children rather than only the first two, for new and existing claims.

    Universal Credit claimants with 3 or more children · Announced 26 November 2025 · Source

  2. 6 April 2026

    Crypto ETNs move out of stocks and shares ISAs In force

    From 6 April 2026, new holdings of UK cryptoasset exchange traded notes belong in an innovative finance ISA, not a stocks and shares ISA. Holdings from before that date can stay. Long-term asset funds move the other way, into stocks and shares ISAs.

    ISA investors in UK cryptoasset ETNs or long-term asset funds · Source

  3. 6 April 2026

    FCA targeted support regime for pensions and investments In force

    Since 6 April 2026, authorised firms can offer targeted support: suggestions about pensions and investments made to groups of consumers in similar circumstances, without a personal recommendation.

    Consumers with pensions and investments at firms that opt to offer targeted support · Announced 1 December 2025 · Source

  4. 6 April 2026

    Dividend tax rates increased from April 2026 In force

    Autumn Budget 2025 raised dividend tax rates: ordinary rate from 8.75% to 10.75% and upper rate from 33.75% to 35.75%, from 6 April 2026; the additional rate stays at 39.35%.

    Shareholders and investors receiving dividend income above the Dividend Allowance · Announced 26 November 2025 · Source

  5. 6 April 2026

    Automatic enrolment earnings thresholds frozen for 2026-27 In force

    The automatic enrolment earnings trigger (£10,000) and qualifying earnings band (£6,240-£50,270) are held at 2025-26 levels for 2026-27 rather than increased.

    Employers and workers subject to automatic enrolment duties · Announced 18 December 2025 · Source

  6. 1 December 2025

    FSCS deposit protection limit raised to £120,000 In force

    From 1 December 2025, FSCS protects up to £120,000 per person per authorised bank, building society or credit union, up from £85,000.

    Everyone with deposits at UK-authorised banks, building societies and credit unions · Announced 1 November 2025 · Source

Earlier, replaced and withdrawn

  1. 1 April 2025

    SDLT nil-rate and first-time-buyer thresholds reverted to pre-2022 levels In force

    The temporary SDLT cuts from the 2022 mini-budget expired: standard nil-rate band fell from £250,000 to £125,000, and first-time buyer relief fell from £425,000/£625,000 cap to £300,000/£500,000 cap.

    All residential property buyers and first-time buyers in England & NI · Announced 23 September 2022 · Source

  2. 11 December 2024

    Wales restructured LTT higher rates for additional properties In force

    Wales replaced its flat 4% LTT surcharge on second homes/buy-to-let with a new banded structure (5%-17%) using its own separate thresholds.

    Buyers of additional residential property in Wales · Announced 10 December 2024 · Source

  3. 5 December 2024

    Scotland's Additional Dwelling Supplement raised from 6% to 8% In force

    Scottish Budget 2025-26 raised the LBTT surcharge on second homes and buy-to-let purchases from 6% to 8%, with transitional relief for contracts signed before the change.

    Buyers of additional residential property in Scotland · Announced 4 December 2024 · Source

  4. 31 October 2024

    SDLT higher rate surcharge raised from 3% to 5% In force

    From 31 October 2024, the SDLT surcharge on additional homes, including second homes and buy-to-let, rose from 3% to 5%.

    Buyers of additional residential property (second homes, buy-to-let) in England & NI · Announced 30 October 2024 · Source