UK personal tax rates, thresholds and allowances for the current and two preceding tax years. Figures apply to England, Wales and Northern Ireland; Scottish income tax bands differ.
| 2026/27 | 2025/26 | 2024/25 | |
|---|---|---|---|
| Income Tax — Bands & Rates | |||
| Basic rate (20%) — taxable income up to | £37,700 | £37,700 | £37,700 |
| Higher rate (40%) — applies above | £37,700 | £37,700 | £37,700 |
| Additional rate (45%) — applies above | £125,140 | £125,140 | £125,140 |
| Higher rate threshold (with full personal allowance) | £50,270 | £50,270 | £50,270 |
| Personal Allowances & Reliefs | |||
| Personal allowance | £12,570 | £12,570 | £12,570 |
| Personal allowance taper begins at | £100,000 | £100,000 | £100,000 |
| Personal allowance fully withdrawn at | £125,140 | £125,140 | £125,140 |
| Marriage allowance (transferable) | £1,260 | £1,260 | £1,260 |
| Blind person’s allowance | £3,250 | £3,130 | £3,070 |
| Rent-a-room relief | £7,500 | £7,500 | £7,500 |
| Trading allowance | £1,000 | £1,000 | £1,000 |
| Property allowance | £1,000 | £1,000 | £1,000 |
| Savings Income | |||
| Personal savings allowance — basic rate | £1,000 | £1,000 | £1,000 |
| Personal savings allowance — higher rate | £500 | £500 | £500 |
| Personal savings allowance — additional rate | £0 | £0 | £0 |
| Starting rate for savings (0%) — up to | £5,000 | £5,000 | £5,000 |
| Dividend Income | |||
| Dividend allowance | £500 | £500 | £500 |
| Ordinary (basic) rate | 10.75% | 8.75% | 8.75% |
| Upper (higher) rate | 35.75% | 33.75% | 33.75% |
| Additional rate | 39.35% | 39.35% | 39.35% |
| Capital Gains Tax | |||
| Annual exempt amount (individuals) | £3,000 | £3,000 | £3,000 |
| Annual exempt amount (most trustees) | £1,500 | £1,500 | £1,500 |
| Rate on shares/other assets — basic rate taxpayer | 18% | 18% | 10% / 18%* |
| Rate on shares/other assets — higher/additional rate | 24% | 24% | 20% / 24%* |
| Rate on residential property — basic rate | 18% | 18% | 18% |
| Rate on residential property — higher/additional rate | 24% | 24% | 24% |
| Business Asset Disposal Relief (lifetime limit £1m) | 18% | 14% | 10% |
| Inheritance Tax | |||
| Nil-rate band | £325,000 | £325,000 | £325,000 |
| Residence nil-rate band | £175,000 | £175,000 | £175,000 |
| Residence nil-rate band taper threshold | £2,000,000 | £2,000,000 | £2,000,000 |
| Standard rate on death | 40% | 40% | 40% |
| Reduced rate (10%+ to charity) | 36% | 36% | 36% |
| Lifetime rate on chargeable transfers | 20% | 20% | 20% |
| Annual gifting exemption | £3,000 | £3,000 | £3,000 |
| Small gifts exemption (per recipient) | £250 | £250 | £250 |
| Wedding gift to a child | £5,000 | £5,000 | £5,000 |
| Wedding gift to a grandchild | £2,500 | £2,500 | £2,500 |
| Wedding gift to anyone else | £1,000 | £1,000 | £1,000 |
| ISAs | |||
| Overall ISA allowance | £20,000 | £20,000 | £20,000 |
| Junior ISA allowance | £9,000 | £9,000 | £9,000 |
| Lifetime ISA — maximum contribution | £4,000 | £4,000 | £4,000 |
| Pensions | |||
| Annual allowance (standard) | £60,000 | £60,000 | £60,000 |
| Money purchase annual allowance | £10,000 | £10,000 | £10,000 |
| Tapered annual allowance — minimum | £10,000 | £10,000 | £10,000 |
| Adjusted income — taper begins | £260,000 | £260,000 | £260,000 |
| Threshold income — taper applies above | £200,000 | £200,000 | £200,000 |
| National Insurance — Employees (Class 1) | |||
| Primary threshold (weekly) | £242 | £242 | £242 |
| Upper earnings limit (weekly) | £967 | £967 | £967 |
| Main rate (between PT and UEL) | 8% | 8% | 8% |
| Rate above upper earnings limit | 2% | 2% | 2% |
| National Insurance — Employers | |||
| Secondary threshold (weekly) | £96 | £96 | £175 |
| Employer rate | 15% | 15% | 13.8% |
| National Insurance — Self-employed | |||
| Class 2 — voluntary flat rate (weekly) | £3.50 | £3.50 | £3.45 |
| Class 4 — main rate | 6% | 6% | 6% |
| Class 4 — rate above upper profits limit | 2% | 2% | 2% |
*For 2024/25, CGT rates on shares and non-residential assets changed mid-year. Disposals before 30 October 2024 used 10% / 20%; disposals from 30 October 2024 used 18% / 24%.
Personal allowance reduces by £1 for every £2 of adjusted net income over £100,000. Dividend basic and higher rates increased by 2 percentage points from 6 April 2026. From 6 April 2026, Agricultural and Business Property Relief is capped: 100% relief on the first £1m of combined assets per person, 50% above. Information for general reference only — not financial or tax advice.