The latest Budget introduced sweeping changes across the tax spectrum. Here are the key takeaways that will impact your finances in the 2026/27 tax year.
Pensions and Inheritance Tax
Unused pension pots will be brought into the scope of Inheritance Tax. Check your inheritance thresholds using our Inheritance Tax Calculator or compare years with our Compare Tax Years Tool.
Frequently Asked Questions (FAQ)
Q: What are the main tax changes in Budget 2026?
A: Key changes include frozen personal income thresholds, a drop in the employer National Insurance secondary threshold, and the inclusion of pensions in Inheritance Tax.
Q: How does the Employer National Insurance hike affect me?
A: While paid by employers, lowering the payment threshold to £5,000 increase business overheads, which can indirectly impact employee wage increases.
Q: Will my income tax bands change in 2026/27?
A: No, the basic (£12,570) and higher rate (£50,270) thresholds remain frozen, increasing the tax burden due to fiscal drag.