Tax hub
Investing doesn't have to be taxing
Discover everything a UK investor should know about tax - from key allowances and ways to make tax‑efficient choices. Our guides and expert commentary give you the clarity and confidence to manage your investments with tax in mind.
Remember ii guides are intended to be useful information, and do not constitute tax advice.
Important information: As investment values can go down as well as up, you may not get back all of the money you invest. Currency changes affect international investments, and this can decrease their value in sterling. If you’re unsure if an investment account is right for you, please speak to an authorised financial adviser. Tax treatment depends on your individual circumstances and may be subject to change in the future.
Make this your best (tax) year yet
Each year, you have an allowance you can use to maximise the tax efficiency of your savings.
Take a look at our ideas on how you can use your allowances to your advantage.
UK tax rates & allowances
When it comes to UK taxes, there’s more to the story than just Income Tax and Capital Gains Tax. From savings income to wealth taxes, we’ve pulled together a guide covering the key rates and allowances that could affect your finances.
Whether you're earning, saving, or investing - this is your resource for staying tax smart.
Make the most of your ISA
Each tax year, you have generous ISA allowances that help your money work harder and avoid the likes of Capital Gains Tax and Income Tax.
Your annual ISA allowance
Take advantage of this year's ISA allowance and invest up to £20,000 tax-free in 2026/27.
Junior ISA allowance
You don't just get an ISA allowance - your children do too. Find out how you can invest up to £9,000 tax free in a Junior ISA.
ISA tax benefits
ISAs offer valuable tax benefits that can help protect your returns over time.
Pensions and taxes
Tax considerations to keep in mind.
SIPP contribution limits
Paying as much as you can into your SIPP will help to boost your retirement income.
Tax relief on pensions
Knowing how pension tax relief works can help you get more from your contributions.
SIPP inheritance tax
Understanding SIPP inheritance tax can help you plan how best to pass on your pension.
Understanding Capital Gains Tax (CGT)
Depending on your circumstances, you may need to pay Capital Gains Tax. Find out what it is, when you pay it and how you could reduce your tax bill.
What is Capital Gains Tax?
Find out when you need to pay tax on gains from selling shares and other assets.
Capital Gains Tax allowances
You can make a certain amount in gains each year before Capital Gains Tax applies.
How to reduce your Capital Gains Tax bill
After significant changes to the Capital Gains Tax allowance in recent years, investors need to plan ahead more than ever.
Your guide to smarter tax planning
Guide to Self Assessment tax returns
Understanding how self-assessment works can make the process less daunting.
Expert tips to tax-efficient investing
Our experts cover smarter ways to invest and help you save on tax in the future.
End of tax year deadlines
Find information on your deadlines and our contact centre opening hours at tax year end.
Guide to bonus sacrifice
Learn how using bonus sacrifice can positively affect both your tax bill and pension savings.
Salary sacrifice explained
For some people, salary sacrifice offers a practical way to reduce tax while saving more for retirement.
Lump sum investing
There are different ways to invest a lump sum. Understanding your options can help you make the most of your money.
Tax FAQs
A tax return is a document submitted to HMRC that reports your total income, expenses, savings interest, investments, and other financial information for the tax year. HMRC uses this information to determine whether you’ve paid the right amount of tax or if you need to pay more.
Many people in the UK have their tax collected automatically through PAYE and do not need to file a Self Assessment tax return.
You generally won’t need to file if:
- You are an employee and your income tax is deducted through PAYE
- You do not have other sources of income above specific thresholds (e.g. savings interest below your Personal Savings Allowance, or rental/side‑income below £1,000)
You may need to file a Self Assessment tax return if:
- You earn rental income from property
- You earn more than £10,000 from savings, investments, or dividends
- You’re self‑employed or earn more than £1,000 from a 'side hustle'
- Your income exceeds £100,000
- You receive more than £2,500 in untaxed income (e.g. tips, commission)
- You have capital gains above the annual CGT allowance
- You or your partner earn over £60,000 and receive Child Benefit
If your circumstances change and you no longer need to file a tax return, make sure you inform HMRC as soon as possible via the GOV.UK service.
Yes, in some cases HMRC will automatically refund overpaid tax, such as if you're employed, and your PAYE tax has been calculated incorrectly.
However, not all refunds are issued automatically. You may need to submit a claim or file a tax return if:
You’re self-employed
You claim work‑related expenses
You have untaxed income
Your tax position cannot be verified through PAYE alone
Since April 2024, many taxpayers must now actively claim refunds through their Personal Tax Account or by submitting a tax return.
For more information on tax overpayments and underpayments, visit GOV.UK.
Recent government announcements include several key tax changes affecting individuals and investors from 2026 onwards:
Dividend tax - From April 2026 dividend tax rates will rise by 2% increasing to:
- 10.75% from 8.75% (basic rate)
- 35.75% from 33.75% (higher rate)
There is no increase for additional rate taxpayers, who will continue to pay 39.35%
Making Tax Digital (MTD) - From April 2026, landlords and self‑employed individuals with income over £50,000 (£30,000 from April 2027), must follow new digital reporting rules under Making Tax Digital for Income Tax.
The rules require keeping digital records and sending HMRC quarterly updates on your income and expenses via compatible software.
Income tax and National Insurance thresholds - There are no changes to the rates, however Income tax bands will remain frozen until at least 2031. This means that even if your income gradually increases, a greater proportion of your earnings may fall into a higher tax band, meaning more of your income is taxed.
Savings interest is taxable. However, whether you pay any tax on your savings all comes down to how much interest you earn and the rate of income tax you pay, as this determines your Personal Savings Allowance (PSA) - which is the amount of savings interest you can earn tax-free each tax year.
Below is the amount of interest you can earn on savings without paying tax:
Basic rate taxpayer - up to £1,000
Higher rate taxpayer - Up to £500
Additional rate taxpayer - No savings interest allowance
Low-income earners may also qualify for the Starting Rate for Savings, which allows you to earn up to £5,000 in interest tax-free. This is an additional tax-free allowance, separate from the PSA, and it depends on your other taxable income, such as earnings from work or a pension.
If your interest stays within your PSA, you won’t pay tax on it. But if it exceeds your allowance, HMRC will usually collect any tax due automatically (through your tax code), although some people may need to report it through Self Assessment.
Interest earned from ISAs is tax-free and does not count towards your PSA.
