Tax Data - Rates for 2025/2026

Income Tax

Rates and bands (other than savings and dividend income)

2025/26 Band £	Rate %	2024/25 Band £	Rate %
0 – 37,700	20	0 – 37,700	20
37,701 – 125,140	40	37,701 – 150,000	40
Over 125,140	45	Over 150,000	45

Savings income – 2025/26 and 2024/25

Savings allowance basic rate	£1,000
Savings allowance higher rate	£500

Dividend income – 2025/26 and 2024/25

Dividend Income	2025/26	2024/25
Dividend allowance	£500	£500
Dividend ordinary rate	8.75%	8.75%
Dividend upper rate	33.75%	33.75%
Dividend additional rate	39.35%	39.35%

Income Tax Allowances

	2025/26	2024/25
Personal allowance	£12,570	£12,570
Personal allowance income limit	£100,000	£100,000
Marriage allowance	£1,260	£1,260
Married couple’s allowance	£11,270	£11,080
– minimum amount	£4,360	£4,280
– income limit	£37,700	£37,700
Blind person’s allowance	£3,130	£3,070

Individual Savings Accounts

	2025/26	2024/25
Overall investment limit	£20,000	£20,000
Junior account investment limit	£9,000	£9,000

Capital Gains Tax

Individuals	2025/26	2024/25
Exemption	£3,000	£3,000
Standard rate	18%	10/18*%
Higher/additional rate	24%	20/24*%
Trusts Exemption	£1,500	£1,500
Rate	24%	20/24*%

*The 18/24% rates apply to disposals on/after 30th October 2024.

The 18/24% rates may apply to the disposal of certain residential property for both years.

Business Asset Disposal Relief

The first £1m of qualifying gains are charged at 10% for 2024/25 ad 14% for 2025/26.

Inheritance Tax

Death rate	Lifetime rate	Chargeable transfers 2025/26 and 2024/25
Nil	Nil	0 – £325,000 (nil rate band)
40%	20%	Over £325,000

A further nil rate band of £175,0000 may be available in relation to current or former residences.

Car, Van and Fuel Benefits

2025/26 CO2 emissions g/km		% of list price taxed
0		3
1-50
Electric range	130 or more	3
	70 – 129	6
	40 – 69	9
	30 – 39	13
	under 30	15
51-54		16
For every extra 5		+1
155 and above		37

For fully diesel cars generally add a 4% supplement (unless the car is registered on or after 1st September 2017 and meets the Euro 6d emissions standard) but the maximum is still 37%. For emissions of 75g/km or more if the CO2 figure does not end in a 5 or 0 round down to the nearest 5 or 0.

2025/2026
Car fuel benefit	£28,200
Van benefit	£4,020
Van fuel benefit	£769

National Insurance

2025/26 Class 1 (employed) rates

Employee Earnings per week	%	Employer Earnings per week	%
Up to £242	Nil	Up to £96	Nil
£242.01 – £967	8	Over £96	15
Over £967	2

Entitlement to contribution-based benefits for employees retained for earnings between £125 and £242 per week. The employer rate is 0% for certain military veterans, employees under 21 and apprentices under 25 on earnings up to £967 per week. 

Class 1A (employers)	15% on employee taxable benefits
Class 1B (employers)	15% on PAYE Settlement Agreements
Class 2 (self-employed)	nil (£3.50 per week where those with profits below £6,845 wish to make a voluntary contribution)
Class 3 (voluntary)	flat rate per week £17.75
Class 4 (self-employed)	6% on profits between £12,570 and £50,270 plus 2% on profits over £50,270

Selected Rates

Weekly benefit	2025/26	2024/25
New State Pension	230.25	221.20
Old State Pension	176.45	169.50
Statutory pay standard rates
Sick Pay	118.75	116.75
Maternity/Adoption Pay	187.18	184.03
Shared Parental Pay	187.18	184.03
Paternity Pay	187.18	184.03

National Living Wage and National Minimum Wage

Age	NLW	18-20	16 – 17	–	Apprentices
From 1 April 2025	£12.21	£10.18	£7.49	–	£7.55

Applies to apprentices under 19, or 19 and over in the first year of apprenticeship. NLW applies to those aged 21 and over.

Tax Reliefs for Individuals

2025/26 and 2024/25 Enterprise Investment Scheme (EIS)

Relief on investments in certain unquoted trading companies up to £1m per annum (£2m for knowledge-intensive companies):

• Income tax relief at 30%
• Capital gains exemption on disposal

Unlimited amounts of capital gains from the disposal of other assets may be able to be deferred by making an EIS investment.

Venture Capital Trusts (VCTs)

Relief on investments in certain quoted companies up to £200,000 per annum:

• Income tax relief at 30%
• Capital gains exemption on disposal

Dividends received from VCTs may be exempt from income tax.

Seed Enterprise Investment Scheme (SEIS)

Relief on investments in certain unquoted trading companies up to £200,000 per annum:

• Income tax relief at 50%
• Capital gains exemption on disposal

Corporation Tax

Year to 31.3.25 and 31.3.26	Profit band £	Rate %
Small profits rate	0 – 50,000	19
Marginal rate	50,0001 – 250,000	26.5
Main rate	Over 250,000	25
Marginal relief fraction	3/200

Profits limits are reduced for a company with associated companies. Different rates apply for ring – fenced (broadly oil industry) profit. 

Capital Allowances

First Year Allowance (FYA) on certain plant, machinery and cars of 0g/km (for cars purchased before 1st April 2026 (6th April 2026 for income tax))	100%
Corporation tax FYA (‘full expensing’) on certain new, unused plant and machinery	100%
Corporation tax FYA on on new, unused long-life assets, integral features of buildings, etc.	50%
Annual Investment Allowance  £1,000,000 – Excluding cars
Writing Down Allowance Long-life assets, integral features of buildings, cars over 50g/km	6%
Other plant and machinery	18%
Structures and Buildings Allowance	3%

Pensions

	2025/26	2024/25
Lump sum allowance	£268,275	£268,275
Lump sum and death benefit allowance	£1,073,100	£1,073,100
Annual Allowance	£60,000	£60,000
Money purchase annual allowance	£10,000	£10,000

Value Added Tax

	From 1/4/23	From 1/4/22
Standard rate	20%	20%
Reduced rate	5%	5%
Annual Registration Limit	£90,000	£90,000
Annual Deregistration Limit	£88,000	£88,000

Property Taxes

Across the whole of the UK, residential rates may be increased by 5% (5% in Wales and 8% in Scotland) where further residential properties are acquired.

Stamp Duty Land Tax

Land and buildings in England and N. Ireland

Residential Band £	Rate %	Non-residential Band £	Rate %
0 – 125,000	0	0 – 150,000	0
125,001 – 250,000	2	150,001 – 250,000	1
250,001 – 325,000	5	Over 250,000	5
325,001 – 750,000	10
Over 750,000	12

First-Time buyer relief may apply to residential purchases up to £500,000.

Land and Buildings Transaction Tax

Land and buildings in Scotland.

Residential Band £	Rate %	Non-residential Band £	Rate %
0 – 145,000	0	0 – 150,000	0
145,001 – 250,000	2	150,001 – 250,000	1
250,001 – 325,000	5	Over 250,000	5
325,001 – 750,000	10
Over 750,000	12

First-Time Buyer relief may apply on the first £175,000 of residential purchases.

Land Transaction Tax

Land and buildings in Wales.

Residential Band £	Rate %	Non-residential Band £	Rate %
0 – 225,000	0	0 – 225,000	0
225,001 – 400,000	6	225,001 – 250,000	1
400,001 – 750,000	7.5	250,001 – 1,000,000	5
750,001 – 1,500,000	10	Over 1,000,000	6
Over 1,500,000	12