Tax Rates and Allowances

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Personal allowance fully withdrawn at£125,140£125,140£125,140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) rate10.75%8.75%8.75%
Upper (higher) rate35.75%33.75%33.75%
Additional rate39.35%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 taxpayer18%18%10% / 18%*
Rate on shares/other assets — higher/additional rate24%24%20% / 24%*
Rate on residential property — basic rate18%18%18%
Rate on residential property — higher/additional rate24%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 death40%40%40%
Reduced rate (10%+ to charity)36%36%36%
Lifetime rate on chargeable transfers20%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 limit2%2%2%
National Insurance — Employers
Secondary threshold (weekly)£96£96£175
Employer rate15%15%13.8%
National Insurance — Self-employed
Class 2 — voluntary flat rate (weekly)£3.50£3.50£3.45
Class 4 — main rate6%6%6%
Class 4 — rate above upper profits limit2%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.