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Contents
- Income Tax (non-Scottish)
- Scottish income tax
- Tax on savings
- Personal Savings Allowance
- Personal Allowance
- Dividend tax allowance
- Carried Interest
- Special rates of income tax for trustees
- Marriage Allowance & Married Couples Allowance
- National Insurance
- Working and Child Tax Credits, Child Benefit and Guardians Allowance
- Capital, assets and property
- Business
- New flat rate State Pension
- Read more
Income Tax (non-Scottish)
| Tax/Allowance | 2026/27 | 2025/26 | 2024/25 | 2023/24 |
|---|---|---|---|---|
| Basic rate income tax band (20%) | £0 - £37,700 | £0 - £37,700 | £0 - £37,700 | £0 - £37,700 |
| Higher rate income tax band (40%) | £37,701 - £125,140 | £37,701 - £125,140 | £37,701 - £125,140 | £37,701 - £150,000 |
| Additional rate income tax band (45%) | £125,140+ | £125,140+ | £125,140+ | £125,140+ |
Further information
Scottish income tax
| Tax/Allowance | 2026/27 | 2025/26 | 2024/25 | 2023/24 |
|---|---|---|---|---|
| Starter rate income tax (19%) | £0 - £3,967 | £0 - £2,827 | £0 - £2,306 | £0 - £2,162 |
| Basic rate income tax (20%) | £3,968 - £16,956 | £2,828 - £14,920 | £2,307 - £13,991 | £2,163 - £13,118 |
| Intermediate rate income tax (21%) | £16,957 - £31,092 | £14,921 - £31,092 | £13,119 - £31,092 | £13,119 - £31,092 |
| Higher rate income tax (42%) | £31,093 - £62,430 | £31,093 - £62,430 | £31,093 - £62,430 | £31,093 - £125,140 |
| Advanced rate income tax (45%) Rate introduced for 2024/25 |
£62,431 - £125,140 | £62,431 - £125,140 | £62,431 - £125,140 | n/a |
| Top rate income tax band (48%) Rate increased by 1% for 2024/25 |
£125,140+ | £125,140+ | £125,140+ | £125,140+ |
Further information
Tax on savings
| Tax/Allowance | 2026/2027 | 2025/26 | 2024/25 | 2023/24 |
|---|---|---|---|---|
| Starting rate of tax on savings income | 0% | 0% | 0% | 0% |
| Basic rate of tax on savings income | 20% | 20% | 20% | 20% |
| Higher rate of tax on savings income | 40% | 40% | 40% | 40% |
| Additional rate of tax on savings income | 45% | 45% | 45% | 45% |
Further information
Personal Savings Allowance
| Tax/Allowance | 2026/2027 | 2025/26 | 2024/25 | 2023/24 |
|---|---|---|---|---|
| Basic rate tax payers | £1,000 | £1,000 | £1,000 | £1,000 |
| Higher rate tax payers | £500 | £500 | £500 | £500 |
| Additional rate tax payers | £0 | £0 | £0 | £0 |
Further information
Personal Allowance
| Tax/Allowance | 2026/27 | 2025/26 | 2024/25 | 2023/24 |
|---|---|---|---|---|
| Personal allowance | £12,570 | £12,570 | £12,570 | £12,570 |
| Blind persons allowance | £3,250 | £3,070 | £2,870 | £2,600 |
Further information
Dividend tax allowance
| Tax/Allowance | 2026/27 | 2025/26 | 2024/25 | 2023/24 |
|---|---|---|---|---|
| Dividend allowance | £500 | £500 | £500 | £1,000 |
| Dividend ordinary rate - for dividends otherwise taxable at basic rate. | 10.75% | 8.75% | 8.75% | 8.75% |
| Dividend upper rate - for dividends otherwise taxable at higher rate. | 35.75% | 33.75% | 33.75% | 33.75% |
| Dividend additional rate - for dividends otherwise taxable at additional rate. | 39.35% | 39.35% | 39.35% | 39.35% |
Further information
Carried Interest
| Tax/Allowance | 2026/27 | 2025/26 | 2024/25 | 2023/24 |
|---|---|---|---|---|
| Tax rates (treated as trading income): Main UK | 20%/40%/45% | n/a | n/a | n/a |
| Tax rates (treated as trading income): Scottish Tax payers | 19%/20%/21%/40%/45%/48% | n/a | n/a | n/a |
| Multiplier | 72.5% | n/a | n/a | n/a |
| Class 4 National Insurance (see above national insurance table) | 6%/2% | n/a | n/a | n/a |
Further information
Special rates of income tax for trustees
| Tax/Allowance | 2026/27 (£500 de minimis applies for trusts) |
2025/26 (£500 de minimis applies for trusts) | 2024/25 (£500 de minimis applies for trusts) | 2023/24 |
|---|---|---|---|---|
| Discretionary trust | ||||
| UK investment bonds | 25% | 25% | Gains above 1,000 taxed at 25% | Gains above 1,000 taxed at 25% |
| Offshore investment bonds | 45% | 45% | Gains above £1,000 taxed at 45% | Gains above £1,000 taxed at 45% |
| Unit trusts & OEICs | Dividends taxed at 39.35% Interest taxed at 45% |
Dividends taxed at 39.35% Interest taxed at 45% |
Dividends taxed at 8.75% and interest taxed at 20%. For income above £1,000, dividends are taxed at 39.35% and interest 45% | Dividends taxed at 8.75% and interest taxed at 20%. For income above £1,000, dividends are taxed at 39.35% and interest 45% |
| Tax/Allowance | 2026/27 (£500 de minimis applies for trusts) |
2025/26 (£500 de minimis applies for trusts) |
2024/25 (£500 de minimis applies for trusts) |
2023/24 |
|---|---|---|---|---|
| Interest in Possession Trusts | ||||
| UK investment bonds | In tax years post death, UK trustees are taxed at 25% | In tax years post death, UK trustees are taxed at 25% | In tax years post death, UK trustees are taxed at 25% | In tax years post death, UK trustees are taxed at 25% |
| Offshore investment bonds | In tax years post death, UK trustees are taxed at 45% | In tax years post death, UK trustees are taxed at 45% | In tax years post death, UK trustees are taxed at 45% | In tax years post death, UK trustees are taxed at 45% |
| Unit trusts and OEICs | Trustees are taxed at 20% on interest and 8.75% on dividends | Trustees are taxed at 20% on interest and 8.75% on dividends | Trustees are taxed at 20% on interest and 8.75% on dividends | Trustees are taxed at 20% on interest and 8.75% on dividends |
Further information
Marriage Allowance & Married Couples Allowance
| Tax/Allowance | 2026/27 | 2025/26 | 2024/25 | 2023/24 |
|---|---|---|---|---|
| Marriage Allowance | £1,260 | £1,260 | £1,260 | £1,260 |
| Marriage Couple's Allowance for those born before 6 April 1935 | £11700 (max) £4530 (min) |
£11,270 (max) £4,360 (min) |
£11,080 (max) |
£10,375 (max) |
| Income limit for Married Couple's Allowance | £39200 | £37,700 | £37,000 | £34,600 |
Further information
National Insurance
| Tax/Allowance | 2026/27 | 2025/26 | 2024/25 | 2023/24 |
|---|---|---|---|---|
Class 1 NICs: Employee and employer thresholds and allowance (£ per week - except where stated) |
||||
| Lower Earnings Limit | £129 | £125 | £123 | £123 |
| Primary Threshold | £242 | £242 | £242 | £242 |
| Secondary Threshold | £96 | £175 | £175 | £175 |
| Upper Earnings Limit | £967 | £967 | £967 | £967 |
| Upper Secondary Threshold for under 21s | £967 | £967 | £967 | £967 |
| Apprentice Upper Secondary Threshold for under 25s | £967 | £967 | £967 | £967 |
| Employment Allowance (per employer) | £10,500 per year | £5,000 per year | £5,000 per year | £5,000 per year |
Class 1 NICs: Employee NIC rates (£ per week - except where stated) |
||||
| Below Weekly Lower Earnings Limit | 0% | 0% | 0% | 0% |
| Weekly Lower Earnings Limit to Primary Threshold | 0% | 0% | 0% | 0% |
| Primary Threshold to Upper Earnings Limit | 8% | 8% | 11.5%* | 11.5%* |
| Above Upper Earnings Limit | 2% | 2% | 2% | 2% |
| *Employee National Insurance is using the “Effective Annual Rates” based on the NI rates changing mid tax year. | ||||
| Tax/Allowance | 2026/27 | 2025/26 | 2024/25 | 2023/24 |
| Married woman’s reduced rate for (primary) Class 1 contribution rates | ||||
| Weekly earnings from between the Primary Threshold and Upper Earnings Limit | 1.85% | 1.85% | 1.85% | 5.35% |
| Weekly earnings above the Upper Earnings Limit | 2% | 2% | 2% | 2% |
Class 1 NICs: Employer NIC rates (£ per week - except where stated) |
||||
| Employer’s (secondary) Class 1 contribution rates | ||||
| Below the Secondary Threshold | 0% | 0% | 0% | 0% |
| Above the Secondary Threshold | 15.0% | 15.0% | 13.8% | 15.05% |
| Employer’s (secondary) Class 1 contribution rates for employees under 21 | ||||
| Below the Upper Secondary Threshold | 0% | 0% | 0% | 0% |
| Above the Secondary Threshold | 15.0% | 15.0% | 13.8% | 13.8% |
| Employer’s (secondary) Class 1 contribution rates for Apprentices under 25 | ||||
| Below the Upper Secondary Threshold | 0% | 0% | 0% | 0% |
| Above the Secondary Threshold | 15.0% | 15.0% | 13.8% | 13.8% |
Class 2 NICs: Self-employed rates and thresholds (£ per week - except where stated) |
||||
| Small Profits Threshold | £7,105 per year | £6,845 per year | £6,725 per year | £6,725 per year |
| Above the Small Profits Threshold | £0 | £0 | £0 | £3.45 |
Class 3 NICs: Other rates and thresholds (£ per week) |
||||
| Voluntary contributions | £18.40 | £17.75 | £17.45 | £17.45 |
Class 4 NICs: Self-employed rates and thresholds (£ per year) |
||||
| Lower Profits Limit | £12,570 | £12,570 | £12,570 | £12,570 |
| Upper Profits Limit | £50,270 | £50,270 | £50,270 | £50,270 |
| Class 4 contribution rates | ||||
| Below the Lower Profits Limit | 0% | 0% | 0% | 0% |
| Between the Lower Profits Limit and Upper Profits Limit | 6% | 6% | 6% | 9% |
| Above the Upper Profits Limit | 2% | 2% | 2% | 2% |
Further information
Working and Child Tax Credits, Child Benefit and Guardians Allowance
| Tax/Allowance | 2026/27 | 2025/26 | 2024/25 | 2023/24 |
|---|---|---|---|---|
| Working tax credits (per year) | ||||
| Basic element | n/a | n/a | £2,435 | £2,280 |
| Couple and lone parent element | n/a | n/a | £2,500 | £2,340 |
| 30 hour element | n/a | n/a | £1,015 | £950 |
| Disabled worker element | n/a | n/a | £3,935 | £3,685 |
| Severe disability element | n/a | n/a | £1,705 | £1,595 |
| Childcare element of the working tax credit (per week) | ||||
| Maximum eligible cost for one child | n/a | n/a | £175 | £175 |
| Maximum eligible cost for two or more children | n/a | n/a | £300 | £300 |
| Percentage of eligible costs covered | n/a | n/a | 70% | 70% |
| Child tax credit (per year) | ||||
| Family element | n/a | n/a | £545 | £545 |
| Child element | n/a | n/a | £3,455 | £3,235 |
| Disabled child element | n/a | n/a | £4,170 | £3,905 |
| Severely disabled child element | n/a | n/a | £5,850 | £5,480 |
| Child benefit (per week) | ||||
| Eldest/only child | £27.05 | £26.05 | £25.60 | £24.00 |
| Other children | £17.90 | £17.25 | £16.95 | £15.90 |
| Guardian's allowance | £22.95 | £22.10 | £21.75 | £20.40 |
Further information
Capital, assets and property
| Tax/Allowance | 2026/27 | 2025/26 | 2024/25 | 2023/24 |
|---|---|---|---|---|
| Pensions allowances | ||||
| Lifetime Allowance limit | Abolished | Abolished | £1,073,100 | £1,073,100 |
| Standard Lump Sum Allowance | £268,275 | £268,275 | £268,275 | n/a |
| Standard Lump Sum and Death Benefit Allowance | £1,073,100 | £1,073,100 | £1,073,100 | n/a |
| Standard Overseas Transfer Allowance | £1,073,100 | £1,073,100 | £1,073,100 | n/a |
| Annual Allowance limit | £60,000 | £60,000 | £60,000 | ££60,000 |
| Tapered Annual Allowance | From £10,000 to £60,000 | From £10,000 to £60,000 | From £10,000 to £60,000 | From £10,000 to £60,000 |
| Money Purchase Annual Allowance | £10,000 | £10,000 | £10,000 | £10,000 |
| Tax free savings accounts | ||||
| Individual Savings Account (ISA) subscription limit | £20,000* *Of which those under age 50 may save £4000 into a Lifetime ISA |
£20,000* *Of which those under age 50 may save £4000 into a Lifetime ISA |
£20,000* *Of which those under age 50 may save £4000 into a Lifetime ISA |
£20,000* *Of which those under age 50 may save £4000 into a Lifetime ISA |
| Junior ISA subscription limit | £9,000 | £9,000 | £9,000 | £9,000 |
| Child Trust Fund (CTF) subscription limit | £9,000 | £9,000 | £9,000 | £9,000 |
| Insurance Premium Tax | ||||
| Standard rate | 12% | 12% | 12% | 12% |
| Higher rate | 20% | 20% | 20% | 20% |
| Capital Gains Tax | ||||
| Main rates for individuals | 18% / 24% | 18% / 24% |
10% / 20% 18% / 24% from 30/10/24 until 5/4/25 |
10% / 20% |
| Rates for individuals (for gains on residential property not eligible for Private Residence Relief, and carried interest) | 18% / 24% for property **see above( From 6 April 2026 carried interest will be treated as trading income |
18% / 24% 32% for carried interest |
18% / 24% | 18% / 28% |
| Main rate for trustees and personal representatives | 24% | 24% |
20% 24% from 30/10/24 until 5/4/25 |
20% |
| Rate for trustees and personal representatives (for gains on residential property not eligible for Private Residence Relief) | 24% | 24% | 24% | 28% |
| Annual Exempt Amount (AEA) for individuals and personal representatives | £3,000 | £3,000 | £3,000 | £12,300 |
| AEA for most trustees | £1,500 | £1,500 | £1,500 | £6,150 |
| Rate on gains subject to entrepreneurs’ relief | 18% | 14% | 10% | 10% |
| Rate on gains subject to investors’ relief | 18% | 14% | 10% | 10% |
| Business Asset Disposal Relief (formerly Entrepreneurs’ relief): lifetime limit on gains for entrepreneurs | £1,000,000 | £1,000,000 | £1,000,000 | £1,000,000 |
| Investors’ relief: lifetime limit on gains for external investors | £1,000,000 | £10,000,000 £1,000,000 from 30/10/24 until 5/4/25 |
£10,000,000 | £10,000,000 |
| Inheritance tax | ||||
| Rate (for estates) | 40% | 40% | 40% | 40% |
| Reduced rate (for estates leaving 10% or more to charity) | 36% | 36% | 36% | 36% |
| Rate (for chargeable lifetime transfers) | 20% | 20% | 20% | 20% |
| Nil rate band limit | £325,000 | £325,000 | £325,000 | £325,000 |
| Residence nil rate band limit | £175,000 | £175,000 | £175,000 | £175,000 |
| Taper threshold for residence nil-rate band | £2,000,000 | £2,000,000 | £2,000,000 | £2,000,000 |
| Stamp Duty Land Tax - residential property | ||||
| Standard Rate (on portion of value above threshold) | ||||
| £0 to £125,000 | 0% | 0% | 0% | 0% |
| £125,000 to £250,000 | 2% | 2% | 0% | 0% |
| £250,000 to £925,000 | 5% | 5% | 5% | 5% |
| £925,000 to £1,500,000 | 10% | 10% | 10% | 10% |
| £1,500,000 + | 12% | 12% | 12% | 12% |
| Rate (on portion of value above threshold) on or after 1 April 2016 if purchase is of an additional residential property | ||||
| £0 to £125,000 | 5% | 3% | 3% 5% from 31/10/24 to 31/03/25 |
3% |
| £125,000 to £250,000 | 7% | 5% |
3% 5% from 31/10/24 to 31/03/25 |
5% |
| £250,000 to £925,000 | 10% | 8% | 8% 10% from 31/10/24 to 31/03/25 |
8% |
| £925,000 to £1,500,000 | 15% | 13% | 13% 15% from 31/10/24 to 31/03/25 |
13% |
| £1,500,000 + | 17% | 15% | 15% 17% from 31/10/24 to 31/03/25 |
15% |
Further information
Business
| Tax/Allowance | 2026/27 | 2025/26 | 2024/25 | 2022/23 |
|---|---|---|---|---|
| Corporation tax rates | ||||
| Small Profits Rate (Below £50,000) | 19% | 19% | 19% | n/a |
| Marginal Rate (Profits between £50,000 to £250,000) | 26.5% | 26.5% | 26.5% | n/a |
| Main rate | 25% | 25% | 25% | 19% |
| Value Added Tax | ||||
| Standard rate | 20% | 20% | 20% | 20% |
| Reduced rate | 5% | 5% | 5% | 5% |
| Zero rate items | 0% | 0% | 0% | 0% |
| VAT registration threshold | £90,000 | £90,000 | £90,000 | £85,000 |
| VAT deregistration threshold | £88,000 | £88,000 | £88,000 | £83,000 |
New flat rate State Pension
| Tax/Allowance | 2026/27 | 2025/26 | 2024/25 | 2023/24 |
|---|---|---|---|---|
| Full new flat rate State Pension (per week) | £241.30 | £230.27 | £221.20 | £203.85 |
Further information
Read more
Income Tax
Inheritance Tax
-
Transferable nil rate band: planning ideas
-
Normal expenditure out of income exemption
-
Inheritance Tax potentially exempt transfers
-
Family investment companies
-
Inheritance Tax meets Child Benefit Tax
-
Inheritance Tax taper relief
-
Inheritance tax and pensions
-
Gifting guidance for attorneys and deputies
-
Transferable nil rate band: the facts
ISA
Pensions allowances
Trusts
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