Home › April 2027 changes
Six changes that could affect your money, in plain English. Each one links to a calculator so you can see what it means for you.
Solar panels and batteries fitted to homes have no VAT until 31 March 2027. From 1 April the rate is 5%, about £355 more on a typical £7,100 system.
Who it affects: Anyone thinking about solar panels or a home battery.
You can still save £20,000 a year in ISAs in total, but only £12,000 of it can go into cash ISAs. The rest has to go into stocks and shares ISAs. Over-65s can still put the full £20,000 into cash.
Who it affects: Savers under 65 who put more than £12,000 a year into cash ISAs.
Interest above your tax-free allowances will be taxed at 22%, 42% or 47%, up from 20%, 40% and 45%. The Personal Savings Allowance (£1,000 for basic-rate, £500 for higher-rate taxpayers) stays the same.
Who it affects: Anyone with savings interest above their tax-free allowance, outside an ISA.
Pension savings you haven’t used when you die will be added to your estate for inheritance tax. Until now most pensions have been left out. Death-in-service benefits from a job stay outside.
Who it affects: People with pension savings, especially larger pots or an estate near the £325,000 tax-free threshold.
Profits from letting property will be taxed at 22%, 42% or 47%, up from 20%, 40% and 45%.
Who it affects: Landlords and anyone renting out a room or property, unless covered by Rent a Room relief.
If you’re self-employed or a landlord and your income from these is over £30,000, you’ll need to keep digital records and send HMRC updates every 3 months using approved software. It started at £50,000 in April 2026.
Who it affects: Sole traders and landlords with self-employment and property income over £30,000 between them.
| Full new State Pension | £241.30 a week from April 2026, up 4.8%. Pension calculator |
|---|---|
| State Pension age | Rising from 66 to 67 in monthly steps between April 2026 and April 2028. Pension calculator |
| Tax on dividends | Rose to 10.75% for basic-rate and 35.75% for higher-rate taxpayers in April 2026. |
| Making Tax Digital | Started for self-employed people and landlords with income over £50,000 in April 2026. |
| 1 April 2028 Pay-per-mile tax for electric cars | 3p a mile for electric cars and 1.5p for plug-in hybrids, on top of road tax. |
|---|---|
| 6 April 2028 Earliest age to take a pension rises to 57 | Up from 55, unless your pension scheme has a protected lower age. |
| 6 April 2028 Making Tax Digital reaches incomes over £20,000 | For self-employed people and landlords. |
| April 2029 Salary sacrifice for pensions is capped | Only the first £2,000 a year paid in through salary sacrifice will be free of National Insurance. |
| 2044 to 2046 State Pension age rises to 68 | Under current law, for people born after 5 April 1977. The timetable could change. |
| Income tax thresholds | The £12,570 personal allowance and the higher-rate threshold stay frozen until April 2031, so more of any pay rise is taxed. |
|---|---|
| ISA allowance | Stays at £20,000 a year in total. |
| Personal Savings Allowance | £1,000 for basic-rate and £500 for higher-rate taxpayers. |
From 6 April 2027 the cash ISA limit falls to £12,000 for under-65s, tax on savings interest and rental income rises by 2 percentage points, unused pensions start to count for inheritance tax, and Making Tax Digital applies to self-employed people and landlords with income over £30,000. 0% VAT on home solar panels and batteries ends on 31 March 2027.
Yes, until 5 April 2027. From 6 April 2027, under-65s can put up to £12,000 a year in cash ISAs. Over-65s can still put £20,000 in cash.
From 6 April 2027, unused pension savings are added to your estate for inheritance tax. Tax is only due if the whole estate is above your tax-free allowances, and anything left to a husband, wife or civil partner is usually free of inheritance tax.
Last checked against GOV.UK: 9 October 2026