Tax Rates and Allowances.
Tax rates and allowances taken from the UK Government’s website
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| Personal allowance fully withdrawn at | £125,140 | £125,140 | £125,140 |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.
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