Tax Tables
UK Tax Rates & Allowances 2026–27 and 2025–26
A simple guide to the main tax rates, allowances and thresholds
This guide is designed as a quick reference. It simplifies some rules and is not a substitute for professional tax advice. Rates can depend on individual circumstances, residency, transaction date and other conditions.
Key changes for 2026–27
- Dividend tax rates increase to 10.75% for basic-rate taxpayers and 35.75% for higher-rate taxpayers. The additional rate remains 39.35%.
- Business Asset Disposal Relief and Investors’ Relief increase from 14% to 18%.
- The main writing-down allowance for plant and machinery falls from 18% to 14%.
- The National Living Wage rises to £12.71 an hour for workers aged 21 and over.
- The employee mileage rate for cars and vans rises to 55p per mile for the first 10,000 business miles.
- Business and Agricultural Property Relief rules change from 6 April 2026, including a £2.5 million allowance for 100% relief.
- The full new State Pension rises to £241.30 a week.
| Inheritance Tax | 2026–27 | 2025–26 |
|---|---|---|
| Nil-rate band | £325,000 | £325,000 |
| Residence nil-rate band | £175,000 | £175,000 |
| IHT rate on death | 40% | 40% |
| Reduced death rate where 10%+ goes to charity | 36% | 36% |
| Rate on chargeable lifetime transfers | 20% | 20% |
The nil-rate band is fixed at £325,000 and the residence nil-rate band at £175,000. The residence nil-rate band starts to taper for estates above £2 million.
Business Property Relief
| Type of property | 2026–27 | 2025–26 |
|---|---|---|
| Qualifying business/agricultural property – 100% relief allowance | 100% up to £2.5m combined allowance; 50% above | 100% where qualifying |
| Shares traded on markets not meeting HMRC’s 'listed' definition (e.g. AIM) | 50% | 100% where qualifying |
| Land, buildings or machinery used in a qualifying business | 50% where qualifying for the 50% category | 50% |
| Listed company shares with control of more than 50% voting rights | 50% | 50% |
From 6 April 2026, qualifying business and agricultural property can receive 100% relief up to the £2.5 million allowance, with 50% relief on qualifying value above that allowance. An unused allowance may be transferable from a predeceased spouse or civil partner, potentially increasing the allowance to £5 million.
Main exempt lifetime gifts
| Gift | Allowance |
|---|---|
| Annual gifts out of capital | £3,000 per donor, with one-year carry-forward if unused |
| Small gifts | £250 per recipient |
| Gift on marriage – parent | £5,000 |
| Gift on marriage – grandparent or party to marriage | £2,500 |
| Other wedding/civil partnership gifts | £1,000 |
| Regular gifts out of surplus income | Potentially exempt if the conditions are met |
Gifts made before death – taper relief
| Years before death | 0–3 | 3–4 | 4–5 | 5–6 | 6–7 |
|---|---|---|---|---|---|
| % of death charge | 100% | 80% | 60% | 40% | 20% |
| National Insurance | 2026–27 | 2025–26 |
|---|---|---|
| Lower Earnings Limit – weekly | £129 | £125 |
| Primary Threshold – weekly | £242 | £242 |
| Secondary Threshold – weekly | £96 | £96 |
| Upper Earnings Limit – weekly | £967 | £967 |
| Employee Class 1 – between PT and UEL | 8% | 8% |
| Employee Class 1 – above UEL | 2% | 2% |
| Employer Class 1 – above ST | 15% | 15% |
| Employment Allowance | £10,500 | £10,500 |
| Class 2 – voluntary weekly rate | £3.65 | £3.50 |
| Class 2 Small Profits Threshold | £7,105 | £6,845 |
| Class 3 – voluntary weekly rate | £18.40 | £17.75 |
| Class 4 Lower Profits Limit | £12,570 | £12,570 |
| Class 4 Upper Profits Limit | £50,270 | £50,270 |
| Class 4 rate – between limits | 6% | 6% |
| Class 4 rate – above upper limit | 2% | 2% |
Class 2 is no longer normally charged when profits exceed the Small Profits Threshold; it can be paid voluntarily by people below the threshold to protect entitlement to certain benefits.
| Capital Gains Tax | 2026–27 | 2025–26 |
|---|---|---|
| Annual exempt amount – individuals/personal representatives | £3,000 | £3,000 |
| Annual exempt amount – most trustees | £1,500 | £1,500 |
| Main CGT rate – basic-rate taxpayer | 18% | 18% |
| Main CGT rate – higher-rate taxpayer | 24% | 24% |
| Business Asset Disposal Relief rate | 18% | 14% |
| Business Asset Disposal Relief lifetime limit | £1,000,000 | £1,000,000 |
| Investors’ Relief rate | 18% | 14% |
| Investors’ Relief lifetime limit | £1,000,000 | £1,000,000 |
From 6 April 2026, carried interest is taxed within the Income Tax framework rather than having a separate Capital Gains Tax rate.
Universal Credit childcare
| Item | 2026–27 | 2025–26 |
|---|---|---|
| Maximum percentage of eligible costs | 85% | 85% |
| Maximum – one child, per assessment period | £1,071.09 | £1,031.88 |
| Maximum – two or more children, per assessment period | £1,836.16 | £1,768.94 |
Tax Credits: Working Tax Credit and Child Tax Credit ended on 5 April 2025. There are therefore no normal 2025–26 or 2026–27 Tax Credit rates to show.
Universal Credit childcare limits shown above are monthly/assessment-period maximums. Eligibility conditions apply.
| Pensions and State Pension | 2026–27 | 2025–26 |
|---|---|---|
| Annual Allowance | £60,000 | £60,000 |
| Money Purchase Annual Allowance | £10,000 | £10,000 |
| Adjusted income threshold for tapered Annual Allowance | £260,000 | £260,000 |
| Minimum tapered Annual Allowance | £10,000 | £10,000 |
| Standard Lump Sum Allowance | £268,275 | £268,275 |
| Standard Lump Sum and Death Benefit Allowance | £1,073,100 | £1,073,100 |
| Normal minimum pension age | 55 | 55 |
| Full new State Pension – weekly | £241.30 | £230.25 |
| Full basic/old State Pension – weekly | £184.90 | £176.45 |
| Income Tax – England, Wales and Northern Ireland | 2026–27 | 2025–26 |
|---|---|---|
| Personal Allowance | £12,570 | £12,570 |
| Basic rate – taxable income | £1–£37,700 | £1–£37,700 |
| Higher rate – taxable income | £37,701–£125,140 | £37,701–£125,140 |
| Additional rate – taxable income | Over £125,140 | Over £125,140 |
| Basic rate | 20% | 20% |
| Higher rate | 40% | 40% |
| Additional rate | 45% | 45% |
| Personal Allowance starts reducing above | £100,000 | £100,000 |
| Blind Person’s Allowance | £3,250 | £3,130 |
| Personal Savings Allowance – basic-rate taxpayer | £1,000 | £1,000 |
| Personal Savings Allowance – higher-rate taxpayer | £500 | £500 |
The Personal Allowance reduces by £1 for every £2 of adjusted net income above £100,000 and is normally fully withdrawn at £125,140.
Scottish Income Tax
| Band | 2026–27 | 2025–26 |
|---|---|---|
| Starter – 19% | £12,571–£16,537 | £12,571–£15,397 |
| Basic – 20% | £16,538–£29,526 | £15,398–£27,491 |
| Intermediate – 21% | £29,527–£43,662 | £27,492–£43,662 |
| Higher – 42% | £43,663–£75,000 | £43,663–£75,000 |
| Advanced – 45% | £75,001–£125,140 | £75,001–£125,140 |
| Top – 48% | Over £125,140 | Over £125,140 |
Dividends and savings
| Item | 2026–27 | 2025–26 |
|---|---|---|
| Dividend allowance | £500 | £500 |
| Dividend ordinary/basic rate | 10.75% | 8.75% |
| Dividend upper/higher rate | 35.75% | 33.75% |
| Dividend additional rate | 39.35% | 39.35% |
| Marriage Allowance | £1,260 | £1,260 |
| Married Couple’s Allowance – maximum | £11,700 | £11,270 |
| Married Couple’s Allowance – minimum | £4,530 | £4,360 |
| Married Couple’s Allowance income limit | £39,200 | £37,700 |
Scottish taxpayers pay the same UK rates on dividend income and savings interest; Scottish rates apply to most non-savings, non-dividend income.
| Child Benefit | 2026–27 | 2025–26 |
|---|---|---|
| Eldest or only child – weekly | £27.05 | £26.05 |
| Each additional child – weekly | £17.90 | £17.25 |
| High Income Child Benefit Charge starts above | £60,000 | £60,000 |
| Child Benefit fully withdrawn above | £80,000 | £80,000 |
The High Income Child Benefit Charge is 1% of the full Child Benefit award for every £200 of adjusted net income above £60,000, up to the full amount.
England and Northern Ireland – residential SDLT
| Purchase price portion | Standard rate |
|---|---|
| £0–£125,000 | 0% |
| £125,001–£250,000 | 2% |
| £250,001–£925,000 | 5% |
| £925,001–£1,500,000 | 10% |
| Over £1,500,000 | 12% |
Additional residential properties generally pay higher rates. From 31 October 2024 the surcharge is 5 percentage points above the standard rates. Certain non-UK resident transactions have a further 2 percentage points. First-time buyer relief can give 0% up to £300,000 and 5% on £300,001–£500,000, subject to conditions.
England and Northern Ireland – non-residential/mixed property
| Purchase price portion | Rate |
|---|---|
| £0–£150,000 | 0% |
| £150,001–£250,000 | 2% |
| Over £250,000 | 5% |
Scotland – residential LBTT
| Purchase price portion | 2026–27 / 2025–26 |
|---|---|
| £0–£145,000 | 0% |
| £145,001–£250,000 | 2% |
| £250,001–£325,000 | 5% |
| £325,001–£750,000 | 10% |
| Over £750,000 | 12% |
A first-time buyer relief can increase the nil-rate band to £175,000. The Additional Dwelling Supplement is 8% for relevant additional dwellings.
Wales – residential LTT
| Purchase price portion | 2026–27 / 2025–26 |
|---|---|
| £0–£225,000 | 0% |
| £225,001–£400,000 | 6% |
| £400,001–£750,000 | 7.5% |
| £750,001–£1,500,000 | 10% |
| Over £1,500,000 | 12% |
Higher residential rates apply to relevant additional dwellings and some company/trust purchases.
Annual Tax on Enveloped Dwellings (ATED)
| Property value | 2026–27 annual charge |
|---|---|
| £500,001–£1m | £4,600 |
| £1,000,001–£2m | £9,450 |
| £2,000,001–£5m | £32,200 |
| £5,000,001–£10m | £75,450 |
| £10,000,001–£20m | £151,450 |
| Over £20m | £303,450 |
| National Minimum Wage and National Living Wage | 2026–27 | 2025–26 |
|---|---|---|
| National Living Wage – age 21+ | £12.71/hour | £12.21/hour |
| National Minimum Wage – age 18–20 | £10.85/hour | £10.00/hour |
| National Minimum Wage – under 18 | £8.00/hour | £7.55/hour |
| Apprentice rate | £8.00/hour | £7.55/hour |
The 2026–27 rates apply from 1 April 2026.
| VAT | 2026–27 | 2025–26 |
|---|---|---|
| Standard rate | 20% | 20% |
| Reduced rate | 5% | 5% |
| Zero rate | 0% | 0% |
| VAT registration threshold | £90,000 | £90,000 |
| VAT deregistration threshold | £88,000 | £88,000 |
| Cash Accounting Scheme threshold | £1,350,000 | £1,350,000 |
| Annual Accounting Scheme threshold | £1,350,000 | £1,350,000 |
| Corporation Tax | 2026–27 | 2025–26 |
|---|---|---|
| Main Corporation Tax rate | 25% | 25% |
| Small profits rate | 19% | 19% |
| Lower threshold | £50,000 | £50,000 |
| Upper threshold | £250,000 | £250,000 |
| Marginal relief fraction | 3/200 | 3/200 |
Corporation Tax is based on financial years, not tax years. The limits may need to be reduced where a company has associated companies.
Capital allowances
| Allowance | 2026–27 | 2025–26 |
|---|---|---|
| Plant & machinery – main writing-down allowance | 14% | 18% |
| Plant & machinery – special rate | 6% | 6% |
| Structures & Buildings Allowance | 3% | 3% |
| Annual Investment Allowance | £1,000,000 | £1,000,000 |
| Full expensing | 100% first-year allowance for qualifying expenditure | 100% first-year allowance for qualifying expenditure |
| 40% main-rate First Year Allowance | Available for qualifying expenditure from 1 Jan 2026 | — |
| Zero-emission cars – 100% FYA | Available to 31 Mar 2027 for Corporation Tax purposes | 100% FYA |
Capital allowance rules are subject to qualifying conditions. Cars do not generally qualify for the Annual Investment Allowance.
| CO₂ g/km | Electric range | 2025–26 | 2026–27 | Type/notes |
|---|---|---|---|---|
| 0 | N/A | 3% | 4% | Fully electric |
| 1–50 | >130 | 3% | 4% | PHEV |
| 1–50 | 70–129 | 6% | 7% | PHEV |
| 1–50 | 40–69 | 9% | 10% | PHEV |
| 1–50 | 30–39 | 13% | 14% | PHEV |
| 1–50 | <30 | 15% | 16% | PHEV |
| 51–54 | — | 16% | 17% | |
| 55–59 | — | 17% | 18% | |
| 60–64 | — | 18% | 19% | |
| 65–69 | — | 19% | 20% | |
| 70–74 | — | 20% | 21% | |
| 75–79 | — | 21% | 21% | |
| 80–84 | — | 22% | 22% | |
| 85–89 | — | 23% | 23% | |
| 90–94 | — | 24% | 24% | |
| 95–99 | — | 25% | 25% | |
| 100–104 | — | 26% | 26% | |
| 105–109 | — | 27% | 27% | |
| 110–114 | — | 28% | 28% | |
| 115–119 | — | 29% | 29% | |
| 120–124 | — | 30% | 30% | |
| 125–129 | — | 31% | 31% | |
| 130–134 | — | 32% | 32% | |
| 135–139 | — | 33% | 33% | |
| 140–144 | — | 34% | 34% | |
| 145–149 | — | 35% | 35% | |
| 150–154 | — | 36% | 36% | |
| 155–159 | — | 37% | 37% | |
| 160+ | — | 37% | 37% | Maximum |
Diesel cars normally attract an additional 4% supplement, capped at 37% until 2027–28. RDE2-compliant diesel cars are exempt from the supplement.
| Mileage Allowance Payments | 2026–27 | 2025–26 |
|---|---|---|
| Car or van – first 10,000 business miles | 55p/mile | 45p/mile |
| Car or van – over 10,000 business miles | 25p/mile | 25p/mile |
| Motorcycle | 24p/mile | 24p/mile |
| Cycle | 20p/mile | 20p/mile |
| Passenger payment – car/van | 5p/mile | 5p/mile |
| Tax-Favoured Investments | Annual limit | Main tax benefit |
|---|---|---|
| Adult ISA | £20,000 | Tax-free income and gains |
| Lifetime ISA | £4,000 (within ISA limit) | 25% government bonus; conditions apply |
| Junior ISA | £9,000 | Tax-free income and gains for children |
| VCT | £200,000 | 30% Income Tax relief, subject to conditions |
| EIS | £1,000,000* | 30% Income Tax relief, subject to conditions |
| SEIS | £200,000 | 50% Income Tax relief, subject to conditions |
* The EIS annual limit can be up to £2 million where at least £1 million is invested in knowledge-intensive companies and the other conditions are met.