Answers · UK 2025/26
When will UK tax allowances be unfrozen?
Personal Allowance (£12,570) and higher-rate threshold (£50,270) are frozen until April 2028 (Spring Budget 2024 extension). IHT nil-rate bands frozen until April 2030. Frozen allowances cause "fiscal drag" — more people pulled into higher tax bands as wages rise.
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UK tax allowance freeze timetable 2025/26. Frozen until 6 April 2028 (Spring Budget 2024, retained by Labour October 2024): Personal Allowance £12,570 (unchanged since April 2021); Higher-rate threshold £50,270; Additional-rate threshold £125,140; NI thresholds. Frozen until 6 April 2030: IHT NRB £325,000; IHT RNRB £175,000. Annual ISA £20,000 (unchanged since 2017/18); LISA £4,000. "Fiscal drag" effect: wages rise 3-5%/year, more people pulled into higher bands without policy change. OBR estimates freezes raise £37 billion/year by 2028-29. Strategic responses: maximise pension contributions, Marriage Allowance, ISA wrappers. Labour committed to maintaining freezes through this Parliament.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.