Tax tables

Last updated 6 April 2026

Key points

Quick reference guide for essential tax rates, thresholds and allowances
Provided for information only - further professional advice may be needed for individual circumstances

Income Tax rates for individuals

UK rates - on taxable income above any personal allowance

2025/26		2026/27
Bands of taxable income	%	Bands of taxable income	%
(£1 - £5,000) *	0	(£1 - £5,000) *	0
£1 - £37,700	20	£1 - £37,700 **	20
£37,701 - £125,140	40	£37,701 - £125,140	40
Over £125,140	45	Over £125,140	45

* There's a starting rate band taxed at 0% which applies to savings income up to a maximum of £5,000. The £5,000 band reduces by £1 for every £1 of non-savings income over the personal allowance of £12,570. If an individual's taxable non-savings income is over £17,570, the 0% starting rate for savings won't apply.

** The basic rate band will be frozen at £37,700 until April 2031.

Dividend income is taxed at 10.75% (income up to the basic rate), 35.75% (higher rate) and 39.35% (additional rate) (for 2025/26 8.75%, 33.75% and 39.35%). Every individual has a dividend allowance of £500. Dividends within the allowance are taxed at 0%.

Scottish resident taxpayers – non-savings income

Rates on taxable income above any personal allowance

2025/26		2026/27

Bands of taxable income	%	Bands of taxable income	%
£1 - £2,827	19	£1 - £3,967	19
£2,828 - £14,921	20	£3,968 - £16,956	20
£14,922, - £31,092	21	£16,957 - £31,092	21
£31,093 - £62,430	42	£31,093 - £62,430	42
£62,431 - £125,140	45	£62,431 - £125,140	45
Over £125,140	48	Over £125,140	48

The Scottish rates and bands apply to non-savings income such as salary, pension and rental income. Savings and investment income continues to be taxed at the UK rates.

Income Tax rates for trusts

	Interest in Possession		* Discretionary
	2025/26	2026/27	2025/26	2026/27
Savings income	20%	20%	45%	45%
Rental income	20%	20%	45%	45%
Dividend income	8.75%	10.75%	39.35%	39.35%

Trusts with income less than £500 will have no income tax to pay. If trust income exceeds £500, all income will be taxable (not just the excess over £500). The £500 is shared between all trusts created by the same settlor. The £1,000 basic rate band was removed from 6 April 2024.

Income Tax allowances and reliefs

Allowance	2025/26	2026/27
Personal allowance	£12,570 *	£12,570 *
Income limit for personal allowance	£100,000	£100,000
(Allowance reduced by £1 for every £2 of "adjusted net income" above £100,000. No personal allowance after £125,140. * The personal allowance will be fixed at £12,570 until April 2031.
Personal Savings Allowance
- basic rate taxpayers	£1,000	£1,000
- higher rate taxpayers	£500	£500
- additional rate taxpayers	Nil	Nil
Dividend allowance	£500	£500
Married couple's allowance (relief at 10% of allowance for married couples and civil partners where at least one is born before 6 April 1935)
- maximum allowance	£11,270	£11,700
- minimum allowance	£4,360	£4,530
(Allowance is reduced by £1 for every £2 of "adjusted net income " above the income limit until it reaches the minimum amount. Any reduction in the married couple's allowance applies after any reduction to the individual's personal allowance).
Income limit for Married couple's allowance	£37,000	£37,700
Marriage allowance (Transferable unused personal allowance for married couples and civil partners born after 5 April 1935)	£1,260	£1,260
Blind person's allowance	£3,130	£3,250

Enterprise Investment Scheme (relief at 30%)	£2M*	£2M*
Seed Enterprise Investment Scheme (relief at 50%)	£200,000	£200,000
Venture Capital Trust (relief at 20%) (30% 2025/26)	£200,000	£200,000

*Any investment over £1million must be invested in knowledge-intensive companies.

Capital Gains Tax rates for individuals

2025/26		2026/27
Gains	Rate%	Gains	Rate%
Up to £3,000	Nil	Up to £3,000	Nil
Over £3,000	18% & 24%*	Over £3,000	18% & 24%

A rate of 24% is payable by individuals with capital gains in excess of their annual exemption which, when added to their income, exceeds the basic rate income tax band of £37,700. Where the income and capital gains don't exceed the basic rate band, the rate of 18% will apply and gains straddling the basic rate band will pay 18% on the amount of gain within this band and 24% above it.

Business asset disposal relief (formerly Entrepreneurs' relief) is available for qualifying business disposals up to a cumulative lifetime limit of £1M. From 6 April 2026 the rate is 18% (14% 2025/26).

Capital Gains Tax rates for trusts

2025/26		2026/27
Gains	Rate%	Gains	Rate%
Up to £1,500	Nil	Up to £1,500	Nil
Over £1,500	24%	Over £1,500	24%

The annual exemption is shared between all trusts created by the same settlor, subject to a minimum per trust of £300.

Trusts will continue to pay 24% on gains on residential property that do not receive principal private residence relief.

Gains arising on bare trusts are not taxable upon the trustees but instead are taxed upon the beneficiary and the rules for individuals will apply.

Inheritance Tax rates

Death Rate	Lifetime Rate	Chargeable Transfers 2025/26	Chargeable Transfers 2026/27
Nil	Nil	£0 - £325,000 *	£0 - £325,000 *
40%**	20%	Over £325,000	Over £325,000
Residential Nil Rate Band ***		£175,000	£175,000

* The Nil Rate Band and Residence Nil Rate Band will be fixed at £325,000 and £175,000 until April 2031.

** Reduced to 36% where at least 10% of the net estate is left to charity.

*** Net estates over £2,000,000 have RNRB reduced by £1 for every £2 and lost when estate is £2,350,000.

Rates of charge on certain gifts within seven years of death
Years between gift and death	% of death rate charge
0-3	100
3-4	80
4-5	60
5-6	40
6-7	20

Exemptions

The following are the main exemptions which are available in certain circumstances:

Gifts to spouses/civil partners (limited if transferor is UK long-term resident and spouse is non-UK long term resident).
Annual allowance of £3,000 per tax year.
Small gifts up to £250 per tax year to individuals.
Normal expenditure out of income.
Gifts in consideration of marriage/civil partnership (£5,000 by a parent, £2,500 by a party to the marriage/civil partnership, or remoter relative, or £1,000 by any other person).
Gifts to UK charities.

Not all the above exemptions may be available at the same time.

National Insurance rates & contributions

Class 1 (Employment)	2025/26	2026/27
Lower earnings limit (LEL)	£125 (weekly) / £6,500 (yearly)	£129 (weekly) / £6,708 (yearly)
Upper earnings limit (UEL)	£967 (weekly) / £50,270 (yearly)	£967 (weekly) / £50,270 (yearly)
Primary earnings threshold	£242 (weekly) / £12,570 (yearly)*	£242 (weekly) / £12,570 (yearly)
Secondary earnings threshold	£96 (weekly) / £5,000 (yearly)	£96 (weekly) / £5,000 (yearly)

Employee contribution rates
Employee rate (on earnings between primary earnings threshold and UEL)	8%	8%
Reduced rate for married women and widows	1.85%	1.85%
Earnings above UEL (including that for married women and widows)	2%	2%
Employer contribution rates
Employer rate (on earnings above secondary earnings threshold) Employer contributions on earnings above the UEL are assessed at the same rate.	15%	15%

Self-employment	2025/26	2026/27
Small profits threshold	£6,845	£7,105
Lower profits limit	£12,570	£12,570
Upper profits limit	£50,270	£50,270
Class 2	£3.50	£3.65
Class 3 (Voluntary)	£17.75	£18.40
Class 4 (additional levy)
Profits between the lower profits limit and the upper profits limit	6%	6%
Profits over the upper profits limit	2%	2%

Individuals normally don't pay NI beyond State Pension age, but employer contributions continue.

Corporation Tax rates

Rate	Financial year 2025/26	Financial year 2026/27
Unified rate on all profits	25%	25%

The main rate is 25%.

There is a small profits rate of 19% for companies with profits of £50,000 or less.

The rate for companies with profits between £50,000 and £250,000 will gradually increase from 19% to 25%.

Registered Pension Schemes

Lump sum allowance (LSA)

The standard LSA is £268,275. Those with transitional protections will have a higher LSA.

Lump sum and death benefit allowance (LSDBA)

The standard LSDBA is £1,073,100. Those with transitional protections or enhancements will have a higher LSDBA.

Annual allowance

The standard annual allowance since tax year 2023/24 has been £60,000.

However, some individuals with 'adjusted income' above £260,000 will have their annual allowance reduced by £1 for every £2 over that level in the tax year, until their annual allowance drops to £10,000 - this is referred to as the 'tapered annual allowance'.

Unused annual allowance in respect of the previous three tax years can be carried forward in some circumstances.

Individuals who have flexibly accessed pension benefits are subject to a money purchase annual allowance (MPAA) of £10,000 and no money purchase carry forward.

The annual allowance charge is a variable charge of up to 45% (48% for Scottish residents) on the amount of total pension input in excess of the annual allowance.

Contributions

Member - unlimited. Tax relief is limited to the higher of £3,600 or 100% of relevant UK earnings.
Employer - unlimited. Normally tax relief is claimable, but the employer's local inspector of taxes decides to what extent it will be given.

Individual Savings Accounts (ISA) limits

Maximum contribution	2025/26	2026/27
ISA	£20,000	£20,000
Junior ISA	£9,000	£9,000
LISA (age 18-40)	£4,000 *	£4,000 *

* Contributions by an individual to a LISA are included within the overall maximum ISA contribution of £20,000.

State Pension

	2025/26(per week)	2026/27 (per week)
Basic State Pension (SPA* before 6 April 2016)
Single person	£176.45	£184.90
Married couples/civil partners	£282.15	£295.65
New State Pension (SPA* after 5 April 2016)	£230.25	£241.30
State Pension Credit (single person)
Guaranteed element	£227.10	£238.00
Savings element	up to £17.30	up to £17.96
State Pension Credit (married couple and civil partners)
Guaranteed element	£346.60	£363.25
Savings element	up to £19.36	up to £20.10

* SPA = State Pension Age.

Important tax dates

Income Tax

Payments on account	31 January during the tax year, and 31 July following the end of the tax year. Normally each of these will be half* of the tax due for the previous tax year. * If you know that your income for the current year will be lower than the previous year's income, you can ask HMRC to reduce your payments on account. But if HMRC later find that extra tax was due, you'll have to pay interest on it. You may also have to pay a penalty if you've asked HMRC to reduce the payments without taking proper care.
Balancing Payment	31 January following the end of the tax year.
Employee P11d	6 July after the end of the tax year.
Tax returns	31 January after the end of the tax year for online returns. 31 October after the end of the tax year for paper tax returns. If the individual receives the tax return after 31 July, the deadline is three months following the date of issue of the notice. 30 December after the end of the tax year for an online return if HMRC to collect tax through PAYE tax code (where possible) if the amount of tax owed is less than £3,000.

Capital Gains Tax

31 January (online returns) or 31 October (paper returns) following the end of the tax year in which the gain has arisen.

From 27 October 2021, CGT on a sale or disposal of residential property is reported (online) and tax paid within 60 days of the transaction. Disposals between 6 April 2020 and 26 October 2021 had to be reported within 30 days of the transaction.

Corporation Tax

Stand-alone companies with taxable profit up to £1.5M - nine months and one day after the end of the accounting period (AP).

Companies with taxable profits over £1.5M ** - will pay Corporation Tax in four equal quarterly instalments starting between the sixth and seventh month of the AP and based on estimated liabilities.

** Excludes companies whose profits in the immediately preceding period were less than £1.5M and in the current period less than £10M.

Inheritance Tax

Death	Normally six months after the end of the month in which death occurred.
Lifetime Transfer	Normally six months after the end of the month in which the transfer is made.