📊 THE BASE RATE · UK money, explained
REFERENCE · 2026/27

The UK money numbers that actually matter

One page for the numbers that change what you do: the base rate, inflation, tax thresholds, ISA and pension allowances, stamp duty and the State Pension. Each one dated, sourced, and linked to the calculator that uses it.

Base rate and inflation update automatically from the BoE and ONS · Statutory figures are for the 2026/27 tax year (6 April 2026 to 5 April 2027) · England, Wales & Northern Ireland unless stated

The headline numbers

The six most-asked figures, at a glance.

3.75%
Bank of England base rate
2.6%
CPI inflation (12-month)
£12,570
Personal allowance (tax-free income)
£20,000
ISA allowance per person
£60,000
Pension annual allowance
£12,548
Full new State Pension (a year)

📈 Rates that move

These change through the year, so each carries its own date. We check them against the Bank of England and ONS.

NumberValueAs ofWhat it means for you
Bank of England base rate 3.75% 17 Dec 2025 Sets the pricing of mortgages and savings. Mortgage → · Live dashboard →
CPI inflation (12-month) 2.6% June 2026 How fast prices rise; it quietly erodes savings and pay. Compound growth → · Live dashboard →
Sources: BoE Bank Rate (set by the MPC, reviewed eight times a year); ONS CPI (series D7G7, published monthly).
Mortgage and savings rates track the base rate, but the deal you get depends on your lender, term and loan-to-value. For a figure that fits your case, use the mortgage and savings interest calculators rather than an average.

💷 Income & tax

Headline figures for the 2026/27 tax year. For the full band tables, see our UK tax rates page.

NumberValueWhat it means for you
Personal allowance £12,570 Income you pay no tax on. Tapers above £100,000, gone at £125,140. Take-home →
Higher-rate threshold £50,270 40% income tax starts here; 20% applies below it. Take-home →
Additional-rate threshold £125,140 45% income tax applies above this. Take-home →
Employee National Insurance 8% then 2% 8% on £12,570 to £50,270, then 2% above. Take-home →
Class 4 NI (self-employed) 6% then 2% 6% on £12,570 to £50,270, then 2% above. Self-employed tax →
Source: gov.uk income tax rates. Thresholds frozen until at least April 2028.
Scotland sets its own income tax bands (19% to 48% for 2026/27). National Insurance is the same UK-wide. See the full bands on the UK tax rates page.

🌱 Saving & investing

The tax-free allowances that decide where your money is best kept, for 2026/27.

NumberValueWhat it means for you
ISA allowance £20,000 Total you can pay into ISAs each year, tax-free. ISA vs SIPP →
Lifetime ISA £4,000 Counts within the £20,000; earns a 25% bonus, up to £1,000 a year. LISA bonus →
Junior ISA £9,000 A separate tax-free allowance for an under-18. Compound growth →
Pension annual allowance £60,000 Most you can pay in with tax relief a year (or 100% of pay if lower). Pension relief →
Money Purchase Annual Allowance £10,000 The lower pension limit once you have flexibly drawn a pension. Pension relief →
Lump Sum Allowance £268,275 The cap on total tax-free cash from your pensions. Will it last? →
Capital gains allowance £3,000 Tax-free gains a year; above it, 18% or 24%. Capital gains →
Dividend allowance £500 Tax-free dividends a year; above it, 10.75% to 39.35%. Dividend tax →
Source: gov.uk (ISAs, pension allowance, CGT, dividends).

🏠 Property (stamp duty)

Headline Stamp Duty Land Tax figures for England & Northern Ireland. Scotland (LBTT) and Wales (LTT) differ.

NumberValueWhat it means for you
Nil-rate threshold £125,000 No stamp duty up to here on a standard purchase. Stamp duty →
First-time buyer relief £300,000 First-time buyers pay nothing up to £300,000 (partial relief to £500,000). Stamp duty →
Additional-property surcharge 5% Extra on top for a second home or buy-to-let. Stamp duty →
Source: gov.uk Stamp Duty Land Tax. Full bands are in the calculator.

🎯 Retirement

The State Pension and the ages that gate your pension money.

NumberValueWhat it means for you
Full new State Pension £241.30/wk About £12,548 a year with a full NI record. Retirement number →
State Pension age 66 Rising to 67 between 2026 and 2028. Retirement number →
Pension access age 55 Earliest you can normally take a private pension; rising to 57 in April 2028. Will it last? →
Source: gov.uk (State Pension, State Pension age).

🎓 Student loans

You repay a share of income above the threshold for your plan. Nothing below it.

PlanThresholdRepayment rate
Plan 1£26,9009% of income above the threshold
Plan 2£29,3859% of income above the threshold
Plan 4 (Scotland)£33,7959% of income above the threshold
Plan 5£25,0009% of income above the threshold
Postgraduate£21,0006% of income above the threshold
Source: gov.uk student loan repayment. Repayments are built into the take-home pay calculator.

Out of work, or on a low income? Benefits are the one area where we point you elsewhere rather than build our own tool. Universal Credit depends on your housing, children, savings and health, and two free calculators model all of it properly: entitledto and Turn2us. Both are comprehensive, free and anonymous. Check them before assuming you qualify for nothing; billions in benefits go unclaimed every year.

💬 Common questions

What is the UK base rate right now?

The Bank of England base rate is 3.75%, held since 17 December 2025. The Monetary Policy Committee reviews it eight times a year, so it can change between updates.

What is the current UK inflation rate?

UK CPI inflation is 2.6% over the latest 12 months (June 2026), published monthly by the Office for National Statistics.

What is the personal allowance for 2026/27?

The tax-free personal allowance is £12,570 for 2026/27. It tapers away above £100,000 and is gone entirely at £125,140.

What is the ISA allowance for 2026/27?

The ISA allowance is £20,000 per person for 2026/27, across all your ISAs. Within that you can pay up to £4,000 into a Lifetime ISA, which earns a 25% bonus.

How much is the State Pension in 2026/27?

The full new State Pension is £241.30 a week, about £12,548 a year, for someone with a full National Insurance record.

Every figure here is checked against gov.uk, HMRC, the Bank of England and the ONS, and against our own calculators, before publishing. Figures move; we date each one and re-check regularly, but always confirm against the primary source before acting. Illustrative and educational, not financial advice.