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📍 Quick Answer — TL;DR
Tax planning in 2026 is no longer about loopholes — it is about managing thresholds with precision. With Income Tax bands frozen until 2031, the £3,000 CGT allowance at a historic low, and a new £2.5m cap on IHT business relief, the gap between a well-planned and unplanned tax position has never been wider. The most powerful strategies: Pension Pivot to escape the 60% trap at £100k, Bed & ISA to permanently shelter investments from CGT, IHT lifetime gifting before the £2.5m cap bites, and salary sacrifice frontloading before the April 2029 NI cap.
🟢 £100k threshold: a £10k pension contribution on £110k income saves £6,000 in tax — net cost to you is just £4,000.
🟢 2026/27 is the last year to shield £20,000 in a Cash ISA — from April 2027 the cap drops to £12,000 for under-65s.
🟡 Business owners and farmers: new £2.5m BPR/APR cap applies from April 2026. Assets above this threshold now face a 20% effective IHT rate.
📋 IN THIS GUIDE
UK Tax Planning & Strategies 2026/27: Protecting Your Wealth in the Frozen-Band Era
With Income Tax bands frozen until 2031, the CGT Annual Exempt Amount cut by 76% in three years, and new caps on inheritance tax business relief, the UK's tax burden on high earners and asset owners has never been heavier — or more structural. The good news: the planning opportunities are equally significant.
This guide covers every high-impact strategy for 2026/27: from escaping the illogical 60% marginal rate at £100k, to using the last full year of the £20,000 Cash ISA allowance, to restructuring business succession before the new IHT cap erodes wealth accumulated over decades.
🚨 FOUR TAX PLANNING FACTS EVERY HIGH EARNER AND ASSET OWNER MUST ACT ON IN 2026/27
💰 Earning £100k–£125,140? Your marginal rate is 60%
Every £2 above £100,000 removes £1 of your Personal Allowance, creating a 60% effective marginal rate. Add NI and Student Loan repayments and it can exceed 70%. A single pension contribution of the right amount eliminates this entirely and costs you less than the tax saved.
🏦 2026/27 is the last year for a full £20k Cash ISA
From April 2027, under-65s will be limited to £12,000 in Cash ISAs — a £8,000 reduction in your ability to shelter cash savings from tax. If you prefer the security of cash over markets, this is the final opportunity to lock in the full allowance before the window narrows permanently.
🏡 Business/farm worth over £2.5m? The IHT cap is now live
Business Property Relief and Agricultural Property Relief previously offered unlimited exemption from IHT. From April 2026, 100% relief applies only to the first £2.5m of combined business and agricultural assets. Values above this face a 20% effective IHT rate. The window for lifetime gifting to avoid this has already opened.
⏳ You have 3 years to maximise salary sacrifice before the 2029 NI cap
From April 2029, NI relief on salary-sacrificed pension contributions will be capped at just £2,000 per year. Every additional pound contributed via salary sacrifice between now and March 2029 saves both Income Tax and 15% employer NI — a benefit that disappears in three years. Frontloading begins immediately.
The £100k 60% Tax Trap: The Most Expensive Inaction in the UK Tax System
Between £100,000 and £125,140, the UK Income Tax system creates one of the most punishing marginal rates in the developed world — not through a higher published rate, but through the silent withdrawal of the Personal Allowance. Understanding the mechanism is the first step to eliminating it entirely.
How the trap works — the mechanics
🔴 The Personal Allowance Taper Rule
For every £2 your Adjusted Net Income exceeds £100,000, you lose £1 of your £12,570 Personal Allowance. By £125,140, the allowance is eliminated entirely.
The real-time maths: £1,000 bonus at £100k income
Excludes NI and Student Loan repayments — which can push the effective rate above 70%.
The Pension Pivot — eliminating the trap entirely
✅ THE STRATEGY: PENSION PIVOT
Make a gross pension contribution (via SIPP or workplace salary sacrifice) equal to the amount your income exceeds £100,000. This reduces your Adjusted Net Income back to £100,000, fully restoring the Personal Allowance and eliminating the 60% zone entirely.
Worked Example: £110k income — Pension Pivot
In other words: you put £10,000 into your future for the net cost of £4,000. The government contributes £6,000 via tax relief. This is the single highest-return legal tax move available to a UK earner.
⚙️ SIPP vs Salary Sacrifice — which route to use
Self-Invested Personal Pension (SIPP)
Contribute personal after-tax money; HMRC adds 25% basic rate relief automatically (making a £8,000 personal contribution a £10,000 gross contribution). Claim additional 20% relief via Self Assessment. Ideal if your employer doesn't match salary sacrifice contributions.
Salary Sacrifice (via employer)
Reduces gross salary, cutting NI liability too — saving an additional 8% (employee) and up to 15% (employer, which many pass back). More efficient than a SIPP for contributions that also reduce NI exposure. Maximise this route until April 2029.
⚠️ Gift Aid as an Adjusted Net Income reducer: Charitable donations via Gift Aid also reduce your Adjusted Net Income. A £1,000 Gift Aid donation is treated as a £1,250 gross donation for ANI purposes. If you are a regular donor and close to £100,000, ensure all donations are recorded on your Self Assessment — they extend your Basic Rate band and can contribute meaningfully to pulling you below the trap threshold. See our Income Tax Guide for the full PA taper and band calculation.
ISA Planning 2026/27: The Last Year for £20,000 in Cash — and Why Every £ Matters
The ISA wrapper remains the most powerful long-term tax shelter available to UK savers and investors — zero CGT, zero Dividend Tax, zero Income Tax on growth and withdrawals, forever. The £20,000 annual allowance is unchanged for 2026/27. But a legislative change arriving in April 2027 makes this year uniquely important for cash-preferring savers.
The 2027 Cash ISA cap — what is changing
✅ Strategic move: maximise the 2026/27 Cash ISA window
If you prefer capital security over market volatility — whether saving for a property purchase, keeping an emergency fund, or simply preferring cash — 2026/27 is the final opportunity to shelter a full £20,000 in a high-interest Cash ISA tax-free for life.
At 4.5% interest on £20,000, a Cash ISA generates £900 of interest annually — 0% tax forever, vs £180 tax at Basic Rate or £360 at Higher Rate on a standard savings account above the PSA.
Cash ISA balances can be transferred to Stocks & Shares ISAs at any future date without counting toward the annual allowance — making today's cash deposit a future investment option with no further tax cost.
Bed & ISA: the CGT protection strategy for investors
🛡️ THE BED & ISA STRATEGY — CGT PROTECTION
With the Capital Gains Tax Annual Exempt Amount now just £3,000, any brokerage portfolio outside an ISA is accumulating a growing CGT liability. The Bed & ISA strategy systematically moves that liability inside the tax-free wrapper — one year at a time.
The three-step annual process
Sell enough assets outside the ISA to crystallise exactly £3,000 in gains — using your Annual Exempt Amount in full, paying zero CGT.
Transfer the sale proceeds (up to £20,000) into your Stocks & Shares ISA within the same tax year — counting against your annual ISA allowance.
Repurchase the same or equivalent assets inside the ISA. All future gains and dividends on these holdings are permanently tax-free — forever.
Repeated annually, this strategy progressively migrates your entire taxable brokerage portfolio inside the ISA wrapper without ever crystallising a taxable gain above the £3,000 exemption.
⚠️ The 30-day rule — a critical timing constraint
If you sell shares outside the ISA and repurchase the exact same shares within 30 days outside the ISA, HMRC treats it as though no disposal occurred — disallowing the gain or loss. The exception: repurchasing inside the ISA immediately is fully permitted and breaks the 30-day rule chain. This is the cornerstone of the Bed & ISA execution. See the full explanation in our Capital Gains Tax guide.
Estate & Inheritance Tax: The New £2.5m BPR/APR Cap — Act Before the Bite Deepens
Inheritance Tax is undergoing its most significant structural change in decades. For business owners and farmers who previously relied on unlimited Business Property Relief (BPR) and Agricultural Property Relief (APR) to pass assets to the next generation tax-free, the April 2026 cap fundamentally changes the succession planning calculation.
📋 Critical change from April 2026: Previously, BPR and APR offered 100% unlimited relief on qualifying business and agricultural assets — effectively removing them from the IHT estate entirely. From April 2026, 100% relief is capped at the first £2.5 million of combined assets. Values above this threshold receive only 50% relief, creating a 20% effective IHT rate on the excess. Wealth built over a lifetime in a family business or farm that was previously fully sheltered is now partially exposed.
The 2026/27 IHT thresholds — full picture
✅ The Transferability Strategy — married couples
The £2.5m BPR/APR cap is fully transferable between spouses and civil partners — exactly like the Nil Rate Band. A couple can therefore pass up to £5 million in qualifying business or agricultural assets at 100% relief, provided the transfer on first death is structured correctly.
Combined estate protection: NRB £325k × 2 = £650k + RNRB up to £350k + BPR/APR cap £5m = a total of up to £6 million passable to direct descendants with zero IHT for a couple with a qualifying business or farm.
Strategies for estates above £2.5m
1. Potentially Exempt Transfers (PETs) — the 7-year clock
Gifts made more than 7 years before death fall entirely outside the estate and are not subject to the £2.5m cap. A gift of £1m in business shares made today and survived by 7 years is fully IHT-free — regardless of the value of remaining business assets. Starting the 7-year clock now, while the business owner is healthy, is the most straightforward path to mitigation. Taper relief applies to gifts made 3–7 years before death, reducing the IHT charge on a sliding scale.
2. Trusts — freezing the estate growth
A Business Property Trust can hold qualifying assets above the £2.5m cap while keeping future growth outside the taxable estate. The trust itself does not immediately trigger IHT if structured as a discretionary trust within the NRB. Trust planning is complex and requires specialist legal and tax advice — but for business owners with growing enterprises, the long-term benefit of freezing today's value can be substantial.
3. Annual gifting allowances — small but compounding
Each individual can give £3,000 per year (£6,000 per couple) IHT-free immediately — no 7-year clock needed. Up to £250 per person to any number of recipients also falls outside IHT. Consistent annual gifting, combined with PETs for larger transfers, creates a multi-layered reduction strategy without requiring any complex structuring.
🚨 Farmers: the APR interaction with agricultural land values
Agricultural land values have risen sharply over the past decade. A farm worth £3.5m in agricultural assets now faces IHT on £1m of excess above the £2.5m cap, despite full APR applying to the first £2.5m. At 20% effective IHT on the excess: a potential £200,000 liability that did not exist before April 2026. With farmland illiquid and the business often the family's entire livelihood, lifetime planning — including APR qualifying structures, trust vehicles, and PET timelines — is now urgent rather than optional.
Family Income Splitting: The Spousal Advantage UK Tax Law Actively Enables
UK tax is assessed on an individual basis — not household income. This structural feature creates a significant planning opportunity for couples where one partner earns substantially more than the other, particularly when it comes to investment income, company shares, and the use of allowances that would otherwise be wasted on the lower-earning spouse.
Strategy 1: Dividend income splitting for company owners
🎯 The Dividend Allocation Opportunity
With the Dividend Allowance at just £500 in 2026/27 and rates raised significantly, holding all company shares — or a high-yield investment portfolio — solely in the higher earner's name is one of the most avoidable tax inefficiencies in a family's portfolio.
Saving on £20,000 of dividends: A Higher Rate taxpayer pays 35.75% = £7,150. The same £20,000 in a Basic Rate spouse's hands = £2,150 in tax — a £5,000 annual saving from a single share transfer between spouses.
⚠️ Settlements legislation (Section 620 ITTOIA): For a spousal share transfer to be accepted by HMRC, it must be a genuine, outright gift with no retained rights. If the shares carry different rights to dividends than other shares (an "alphabet share" arrangement), HMRC may apply the settlements rules to treat the income as belonging to the original owner. Consult a specialist accountant before restructuring company shareholdings.
Strategy 2: CGT rate reduction via spousal transfer
💷 How spousal CGT splitting works in 2026/27
Transfers between spouses and civil partners are made on a no gain, no loss basis — zero CGT regardless of current market value. This creates two powerful tools:
Tool 1 — Double the Annual Exempt Amount
Transfer half an asset to your spouse before the sale. Each of you uses your own £3,000 AEA — combining to £6,000 tax-free. The taxable gain is halved at source before rate applies.
Tool 2 — Rate arbitrage (24% → 18%)
If your spouse is a Basic Rate taxpayer, their CGT rate is 18% (shares/investments) vs your 24% as a Higher Rate payer. Transferring the full asset before disposal saves 6 percentage points on the entire taxable gain — a substantial sum on large disposals.
⚠️ Timing is critical: The transfer must be genuine and completed before contracts are exchanged. A transfer on the day of sale, or simultaneous with the disposal, may be challenged by HMRC as a paper exercise. Allow meaningful time between transfer and sale.
Strategy 3: Marriage Allowance transfer
£252
Marriage Allowance — £252 annual saving for eligible couples
If one spouse earns below the £12,570 Personal Allowance and the other is a Basic Rate taxpayer (not Higher or Additional Rate), transferring £1,260 of the unused allowance saves £252 per year in Income Tax. Claim online via HMRC — it can be backdated up to 4 years, potentially unlocking over £1,000 in refunds. Small individually, but a guaranteed tax saving requiring only a 10-minute online claim.
Salary Sacrifice: Maximum Value Before the April 2029 NI Cap Changes Everything
Salary sacrifice remains the most frictionless tax strategy for employees — reducing gross salary in exchange for a non-cash benefit simultaneously cuts Income Tax, employee NI, and (if the employer passes it back) employer NI. But a significant change is coming in April 2029 that curtails the NI efficiency for pension contributions specifically. Three years remain to front-load.
How salary sacrifice works — the full efficiency
⚙️ SALARY SACRIFICE — THE COMBINED TAX SAVINGS
A Higher Rate taxpayer sacrificing £5,000 of salary into a pension via salary sacrifice could retain the effective equivalent of over £3,000 in net take-home that would otherwise be lost to Income Tax and NI combined.
🚗 Electric vehicles via salary sacrifice — still highly efficient
Electric vehicles carry a Benefit-in-Kind (BiK) rate of just 3% in 2026/27 (rising gradually to 7% by 2028/29). This makes salary-sacrificed EV leasing significantly cheaper than a personal lease — often by 30–40% when Income Tax and NI relief are combined. A Higher Rate taxpayer leasing a £600/month EV via salary sacrifice may pay the equivalent of £220–260/month after tax relief — including insurance, maintenance, and charging infrastructure in many scheme structures.
Note: the April 2029 NI cap applies specifically to pension contributions via salary sacrifice — not to EV leasing or other non-cash benefits. EV salary sacrifice efficiency is preserved beyond 2029.
The April 2029 countdown — what is changing and how to front-load
🚨 THE APRIL 2029 CHANGE — SALARY SACRIFICE PENSION NI RELIEF
From April 2029, National Insurance relief on salary-sacrificed pension contributions will be capped at £2,000 per year. Pension contributions above this threshold will no longer benefit from NI relief when made via salary sacrifice — removing a significant portion of the strategy's efficiency for higher earners and maximum contributors.
🚀 THE FRONT-LOADING STRATEGY (2026–2029)
You have three full tax years — 2026/27, 2027/28, 2028/29 — to maximise salary sacrifice pension contributions with full NI relief intact. Front-loading means deliberately increasing your salary sacrifice to the maximum viable amount now, while the efficiency exists in full.
Prioritise if you are approaching or in the 60% trap: salary sacrifice contributions reduce Adjusted Net Income (restoring PA) and save full NI — a dual benefit that ends in 2029.
Consider carrying forward unused Annual Allowance from the previous three years (up to £60,000 total) for a one-off large contribution before April 2029 changes.
Negotiate with your employer to have their NI saving passed into your pension — many companies will agree to contribute some or all of the 15% employer NI saving, further compounding the benefit.
📋 HMRC compliance note: Salary sacrifice must be set up via a formal agreement with your employer that reduces your contractual salary — it cannot be applied retrospectively to income already received. Check that your existing salary sacrifice arrangement is documented, current, and not in breach of National Minimum Wage rules (your sacrificed salary cannot take net pay below the NMW). Contact your HR or payroll department to review the agreement before April 2027.
Your 2026/27 Tax Planning Strategy Checklist
Six high-priority actions that cover the majority of planning opportunities available in the 2026/27 tax year — each with a direct connection to a specific threshold, deadline, or rate change that creates urgency.
CHECK FIRST
Audit the £100k threshold
Will a bonus, dividend, or pay rise push your Adjusted Net Income over £100,000 this year? If so, calculate the exact pension contribution required to pull back to £100,000 and protect your Personal Allowance. Act before 5 April — contributions cannot be backdated.
LAST CHANCE — ACT THIS YEAR
Maximise the £20k Cash ISA
If you are under 65 and prefer cash security over market investments, 2026/27 is the final year to shield a full £20,000 in a Cash ISA. From April 2027 the cap drops to £12,000. Use the full allowance before 5 April 2027 — money once deposited is sheltered forever.
ANNUAL PRIORITY
Use the £3,000 CGT Allowance (Bed & ISA)
Sell enough brokerage investments to crystallise exactly £3,000 in gains — zero CGT. Immediately repurchase inside a Stocks & Shares ISA to permanently shelter future gains. This annual action progressively migrates your entire portfolio inside the tax-free wrapper.
URGENT — REVIEW NOW
Review business & farm value vs £2.5m cap
If your trading business or agricultural land is valued above £2.5m, the new IHT cap is already active. Consult a specialist adviser immediately about lifetime gifting (starting the 7-year PET clock), trust structures, and annual gifting strategies before the value grows further.
IF APPLICABLE
Gift Aid & spousal income splitting
Higher Rate taxpayers: ensure all Gift Aid donations are on your Self Assessment — each extends your Basic Rate band. Couples: review whether dividend income and investment assets are optimally placed with the lower-earning spouse to minimise the household tax rate. Marriage Allowance — claim if eligible and backdate up to 4 years.
COMPLIANCE LINK
Digital readiness for MTD (if over £50k)
If your self-employment or rental income exceeds £50,000, Making Tax Digital for Income Tax is mandatory from April 2026. See the full compliance requirements, quarterly deadlines, and approved software options in our HMRC Rules & Compliance guide.
Tax Planning & Strategy FAQs
Detailed answers to the most commonly asked questions about the 60% trap, Cash ISA planning, IHT business relief, salary sacrifice, and income splitting strategies for 2026/27.
How do I avoid the 60% tax trap at £100,000?
How do I avoid the 60% tax trap at £100,000?
The 60% trap exists because your £12,570 Personal Allowance is withdrawn at £1 for every £2 you earn above £100,000. By £125,140 the allowance is eliminated entirely, and the transition zone is taxed at an effective 60% marginal rate (or higher when NI is included).
✅ The Pension Pivot solution: Make a gross pension contribution equal to the amount your Adjusted Net Income exceeds £100,000 — via a SIPP or workplace salary sacrifice. This pulls your ANI back to exactly £100,000, fully restoring your Personal Allowance. On a £110,000 income, a £10,000 pension contribution saves £6,000 in tax at a net cost of only £4,000. The government effectively contributes £6,000 to your future.
⚠️ Gift Aid also works: Charitable donations via Gift Aid are treated as gross donations for ANI calculation purposes. A £800 cash donation becomes a £1,000 gross Gift Aid donation, reducing ANI by £1,000. If you are a regular donor and near the £100k threshold, ensure all donations are recorded on your Self Assessment.
See the Income Tax Guide for the full PA taper calculation and band interaction.
What is the Cash ISA cap from April 2027 and who is affected?
What is the Cash ISA cap from April 2027 and who is affected?
From 6 April 2027, savers under 65 will be limited to depositing a maximum of £12,000 per year into Cash ISAs. The remaining £8,000 of the £20,000 annual ISA allowance must go into a Stocks & Shares ISA, IFISA, Lifetime ISA, or another qualifying type. Over-65s are entirely exempt from the cap.
🚨 Why 2026/27 is the last full window: Once the cap takes effect in April 2027, it is permanent. Any under-65 saver who wants to maximise their cash shelter must do so before 5 April 2027 — after which they can only add £12,000 per year in cash. The 2026/27 allowance cannot be backdated or rolled forward.
💡 Existing Cash ISA balances are unaffected: The cap applies only to new contributions from April 2027. Money already held in Cash ISAs is fully protected and continues to earn tax-free interest regardless of balance size. You can also transfer existing Cash ISA balances to Stocks & Shares ISAs at any time without using your annual allowance.
What is Business Property Relief and how has the £2.5m cap changed IHT planning?
What is Business Property Relief and how has the £2.5m cap changed IHT planning?
Business Property Relief (BPR) was previously an unlimited IHT exemption for qualifying trading business assets — meaning a business worth any amount could pass to heirs with zero IHT. From April 2026, 100% relief is capped at the first £2.5 million of combined business and agricultural assets (BPR + APR combined). Assets above this face a 20% effective IHT rate.
✅ The spousal transferability advantage: The £2.5m cap is fully transferable between spouses — giving a married couple up to £5 million in combined BPR/APR 100% relief. Combined with the Nil Rate Band (£325k each) and Residence NRB (up to £175k each), a couple with a qualifying business or farm can potentially pass over £6 million with zero IHT.
⚠️ For estates above £2.5m per individual: Lifetime gifting via Potentially Exempt Transfers (PETs) is the primary mitigation route — gifts survived by 7 years fall outside the estate entirely and are not subject to the £2.5m cap. Starting the 7-year clock now, while the business owner is in good health, is the most important action for high-value business owners and farmers.
Can I legally split income with my spouse to reduce our tax bill?
Can I legally split income with my spouse to reduce our tax bill?
Yes — UK tax law assesses each individual separately, not household income. This creates genuine planning opportunities for couples where income is unequal, particularly around dividend income, investment disposals, and unused allowances.
✅ Three core splitting strategies: (1) Transfer income-producing assets (shares, investment portfolios) to the lower-earning spouse to access their lower tax rate on dividends (10.75% Basic vs 35.75% Higher Rate). (2) Transfer half an investment before sale to double the £3,000 CGT Annual Exempt Amount to £6,000 combined. (3) Claim the Marriage Allowance (£252/year saving) if one spouse earns below the Personal Allowance and the other is a Basic Rate payer.
❌ The settlements trap: HMRC's settlements rules (S620 ITTOIA 2005) can override apparent spousal transfers where shares have been structured to pay dividends only to the lower-earning spouse (alphabet shares) or where the gift is not outright and unconditional. Genuine transfers of ordinary shares work cleanly — engineered structures designed purely to divert income may be challenged.
What changes to salary sacrifice in April 2029 and how should I plan now?
What changes to salary sacrifice in April 2029 and how should I plan now?
From April 2029, NI relief on salary-sacrificed pension contributions will be capped at £2,000 per year. Pension contributions above this threshold via salary sacrifice will still receive full Income Tax relief — but the NI saving (employee 8% + employer up to 15%) will only apply to the first £2,000.
💡 The front-loading strategy: Tax years 2026/27, 2027/28, and 2028/29 all offer full NI efficiency on salary sacrifice. Use carry-forward of unused Annual Allowance from previous years to make large one-off contributions. Simultaneously, if your income is near £100k, salary sacrifice reduces ANI — saving both NI and restoring the Personal Allowance.
The EV salary sacrifice benefit is not affected by the 2029 change — this applies only to pension contributions. EV leasing via salary sacrifice retains full Income Tax and NI efficiency beyond 2029.
What is a Potentially Exempt Transfer (PET) and how does it reduce Inheritance Tax?
What is a Potentially Exempt Transfer (PET) and how does it reduce Inheritance Tax?
A Potentially Exempt Transfer (PET) is a gift made to another individual (not a trust) that falls entirely outside your estate for IHT purposes — provided you survive for 7 years after making it. There is no cap on the value of a PET.
✅ The 7-year taper: If death occurs within 7 years, taper relief reduces the IHT charge on a sliding scale: 40% full charge (0–3 years), 32% (3–4 years), 24% (4–5 years), 16% (5–6 years), 8% (6–7 years), 0% (7+ years). Starting the clock early on large transfers is the single most important IHT action for business owners with assets above the £2.5m BPR cap.
⚠️ Important: PETs are not subject to the £2.5m BPR/APR cap. Gifting qualifying business or farm assets above the cap as PETs removes them from the estate entirely after 7 years — a more powerful tool than relying on the 50% partial relief that applies to assets above the cap that remain in the estate.
Every Strategy Connects to a Rate, a Threshold, or a Deadline
Tax planning works by understanding the rates and rules first. Explore every connected area of your 2026/27 tax position below.
FULL HUB
UK Tax Hub — 2026/27 Overview
All UK tax types in one place — the complete starting point for 2026/27 planning.
INCOME TAX
Income Tax Guide 2026/27
Frozen Personal Allowance, the 60% PA taper mechanics, fiscal drag explained and the full band structure.
CAPITAL GAINS TAX
Capital Gains Tax 2026/27
£3,000 AEA, 18%/24% equalised rates, Bed & ISA execution, 30-day rule and BADR at 18% fully explained.
COMPLIANCE
HMRC Rules & Compliance
MTD mandatory from April 2026 for £50k+ income. Five quarterly deadlines, points-based penalties and digital record requirements.
TOOLS
Tax Strategy Modelling Tools
Model how a pension contribution or ISA transfer changes your take-home pay. Calculate the net cost of Pension Pivot on your income.
ISA GUIDE
UK ISA Guide — Every Type Explained
Best Cash ISA rates for 2026/27, Stocks & Shares ISA platforms for Bed & ISA execution, and the 2027 cap implications.
The Gap Between a Planned and Unplanned Tax Position Has Never Been Wider.
Frozen Income Tax bands until 2031. A CGT allowance at its lowest point in three decades. A new IHT cap that restructures decades of business succession planning. A salary sacrifice efficiency window that closes in April 2029. Every threshold, every deadline, every upcoming change favours those who plan early over those who act in January.
📌 YOUR 2026/27 PLANNING PRIORITY ACTIONS
Check the £100k threshold now: project your full year income including expected bonuses, dividends, and rental income. If you will exceed £100,000, calculate the pension contribution required and make arrangements before 5 April 2027.
Use the 2026/27 Cash ISA window: if you are under 65 and want cash security, fill this year's £20,000 Cash ISA allowance before the April 2027 cap reduces it to £12,000. Do not let this year's unused allowance expire on 5 April 2027.
Annual Bed & ISA action: before 5 April, sell enough brokerage investments to crystallise £3,000 of gains and immediately repurchase inside your Stocks & Shares ISA. Never let the annual CGT allowance go unused when Bed & ISA costs you nothing in tax.
Business owners and farmers — act on the £2.5m IHT cap: if your business or agricultural assets are worth more than £2.5m, engage a specialist adviser immediately about PETs, annual gifting, and trust structures. The 7-year clock starts on the day of the gift — every year of delay is a year of IHT exposure added.
Maximise salary sacrifice before 2029: increase your workplace pension contributions via salary sacrifice to the highest viable level before the April 2029 NI cap. Use carry-forward allowances from the previous three years to make a larger one-off contribution while full NI efficiency exists.
TaxYZ provides educational information only and is not regulated by the FCA or ICAEW. All rates, thresholds, and legislative details reflect the 2026/27 tax year as published by HMRC and HM Treasury. This page does not constitute financial, tax, or legal advice. Tax planning strategies involve individual circumstances — consult a qualified tax adviser, accountant, or financial planner before acting on the information contained here.