PennyCompass

UK Annual Allowances Summary

Free UK annual allowances overview. Personal Allowance, ISA, pension, dividend, savings, CGT, gift, IHT, in one quick reference.

Published

UK 2026/27 annual allowances at a glance.

AllowanceAmountTax saved at your rate

Your breakdown

Updates live as you type
AllowanceAmountTax saved at 45%

One screen for the numbers that reset every April

Most people meet their tax allowances one at a time, usually when an accountant mentions one in March. This page pulls the headline 2026/27 figures into a single table so you can see the full picture at the start of the tax year, when there is still time to act. The personal allowance sits at £12,570, the ISA subscription limit at £20,000, the pension annual allowance at £60,000, and the capital gains tax annual exempt amount at just £3,000 after several years of cuts. You type your marginal rate, and the tool multiplies each allowance by that rate to show roughly what fully using it is worth to you in tax.

That second column matters more than people expect. An allowance is only as valuable as the tax it saves at your rate, and a 45 percent additional-rate taxpayer gets far more from the same headline number than a basic-rate taxpayer does. The tool is built for the planning-minded individual, the contractor balancing salary and dividends, and anyone doing a January Self Assessment who wants to know what they left on the table.

Use-it-or-lose-it versus carry-forward

The single most useful distinction here is which allowances die at midnight on 5 April and which do not. The ISA allowance is strictly use-it-or-lose-it: the £20,000 cannot be rolled into next year. The same is true of the CGT exempt amount and the dividend allowance. The pension annual allowance is the big exception. Under HMRC carry-forward rules you can mop up unused annual allowance from the previous three tax years, provided you were a member of a registered pension scheme in those years and you have the relevant earnings to support the contribution. That single rule lets a saver with spare cash put well over £60,000 into a pension in one year.

A common and costly mistake is assuming the personal allowance behaves like the others. It does not roll forward, and worse, it shrinks once income passes £100,000, falling by £1 for every £2 of income above that line until it disappears entirely at £125,140. That taper is what creates the notorious 60 percent effective band.

What the allowances are worth to a 45 percent taxpayer

Set the marginal rate to 45 percent and the value of each allowance jumps. The breakdown table directly below the calculator pulls three of the largest entries straight from the tool's own figures so you can see the tax saved.

The chart below ranks those same three allowances by the tax they shelter at 45 percent, which makes the pension allowance's dominance obvious.

Where Scotland changes the answer

The allowances in the table are UK-wide and apply in Scotland too, because the personal allowance, ISA limit, pension allowance, CGT, dividend and savings allowances are all set by Westminster, not Holyrood. What differs is the rate column. Scotland has its own income tax bands, and a higher-rate Scottish taxpayer faces a 42 percent marginal rate, with an advanced rate of 45 percent and a top rate of 48 percent above £125,140. So a Scottish saver should enter their actual Scottish marginal rate to see the true value of, say, pension relief, which can be slightly more generous than for an equivalent earner in England.

Does the marriage allowance affect my personal allowance?

Yes. The marriage allowance lets a non-taxpaying spouse transfer £1,260 of their personal allowance to a basic-rate partner, which is why it appears in the table. It is only worth doing where one partner earns below £12,570 and the other is a basic-rate taxpayer; a higher-rate recipient is not eligible. The benefit is around £252 of tax for the couple, and you can backdate a claim up to four tax years.

Can I split my £20,000 ISA across different ISA types?

You can. From April 2024 you may pay into more than one ISA of the same type in a tax year, and you can spread the single £20,000 limit across a cash ISA, a stocks and shares ISA, and an innovative finance ISA in any combination. The Lifetime ISA is the exception, capped at £4,000 within that overall £20,000, and the Junior ISA has its own separate £9,000 limit that does not touch the adult allowance.

Frequently asked questions

Why does this matter?
Every April 6 (start of tax year) your allowances reset. ISA, pension, CGT exempt amount, etc., are use-it-or-lose-it. Some carry forward (pension up to 3 years), most do not.
Can I carry forward unused pension annual allowance?
Yes, you can carry forward unused pension annual allowance from the previous three tax years, provided you were a member of a registered pension scheme in each of those years. You must use the current year allowance in full before drawing on carried-forward amounts. Your total contribution, including carry-forward, must not exceed your earnings for the year.
What happens to my personal allowance if I earn over £100,000?
The personal allowance tapers away at a rate of £1 for every £2 of adjusted net income above £100,000. It disappears entirely once income reaches £125,140, creating an effective 60 percent marginal tax rate in that band. Making a pension contribution or gift aid donation can reduce adjusted net income and partially restore the allowance.
Is the ISA allowance the same for all ISA types?
The overall annual ISA subscription limit is £20,000 and can be split across a cash ISA, stocks and shares ISA, and innovative finance ISA in any combination. The Lifetime ISA has its own sub-limit of £4,000 within that £20,000. The Junior ISA has a separate £9,000 limit that does not count against the adult allowance.

Related calculators

Sources

  1. HMRC — Income Tax Rates and Personal Allowances 2026/27, HM Revenue & Customs
Embed this calculator on your site (free)

Paste this code into your page. The calculator stays up to date automatically and links back to PennyCompass.

Calculator by PennyCompass