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    Tax Rates & Allowances

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    Guidance, not advice. We explain the rules, we don't assess your situation. Always seek financial or tax advice from your accountant, or contact HMRC. Read our editorial scope →

    Quick reference guide for UK tax rates and thresholds

    Income Tax

    2025/26

    Personal Allowance

    £12,570.00

    Basic Rate (20%)

    £12,570 - £50,270

    Up to £50,270.00

    Higher Rate (40%)

    Up to £125,140.00

    Additional Rate (45%)

    Over £125,140.00

    PA Taper Starts

    £1 lost per £2 earned

    £100,000.00

    Scottish Income Tax

    2025/26

    Personal Allowance

    £12,570.00

    Starter Rate (19.0%)

    Up to £15,397

    Basic Rate (20.0%)

    Up to £27,491

    Intermediate Rate (21.0%)

    Up to £43,662

    Higher Rate (42.0%)

    Up to £75,000

    Advanced Rate (45.0%)

    Up to £137,710

    Top Rate (48.0%)

    Over £137,710

    National Insurance

    2025/26

    Class 1 Employee Main Rate

    £12,570 - £50,270

    8.0%

    Class 1 Employee Additional

    Above £50,270.00

    2.0%

    Class 1 Employer Rate

    Above £5,000.00

    15.0%

    Class 4 Main Rate

    Self-employed

    6.0%

    Class 4 Additional

    Above £50,270.00

    2.0%

    Dividend Tax

    2025/26

    Dividend Allowance

    £500.00

    Basic Rate

    8.8%

    Higher Rate

    33.8%

    Additional Rate

    39.4%

    Capital Gains Tax

    2025/26

    Annual Exempt Amount

    £3,000.00

    Residential (Basic)

    18.0%

    Residential (Higher)

    24.0%

    Non-Residential (Basic)

    10.0%

    Non-Residential (Higher)

    20.0%

    BADR Rate

    Lifetime limit: £1,000,000.00

    10.0%

    Savings & Interest

    2025/26

    Starter Rate Band

    0% rate

    £5,000.00

    PSA (Basic Taxpayer)

    £1,000.00

    PSA (Higher Taxpayer)

    £500.00

    PSA (Additional)

    £0

    Student Loans

    2025/26

    Plan 1 Threshold

    9% above threshold

    £25,375.00

    Plan 2 Threshold

    9% above threshold

    £27,660.00

    Plan 4 Threshold

    9% above threshold

    £31,860.00

    Postgraduate Threshold

    6% above threshold

    £21,000.00

    Pension Allowances

    Annual Allowance

    Standard limit

    £60,000

    Tapered AA Minimum

    For high earners

    £10,000

    Taper Threshold

    Threshold income

    £260,000

    Money Purchase AA

    After flexible access

    £10,000

    Carry Forward

    Unused allowance

    3 years

    Inheritance Tax

    Nil-Rate Band

    £325,000

    Residence Nil-Rate

    Main residence to descendants

    £175,000

    Combined Maximum

    Per person

    £500,000

    Married Couple Max

    Transferable allowances

    £1,000,000

    Standard Rate

    36% if 10%+ to charity

    40%

    Taper Threshold

    RNRB tapers above this

    £2,000,000

    Corporation Tax

    Small Profits Rate

    Profits ≤ £50,000

    19%

    Main Rate

    Profits ≥ £250,000

    25%

    Marginal Relief

    3/200 fraction

    £50,001 - £249,999

    R&D Credit (SME)

    Enhanced deduction

    Up to 21.5%

    Annual Investment Allowance

    £1,000,000

    ISA Allowances

    Annual ISA Limit

    £20,000

    Junior ISA / CTF

    £9,000

    Lifetime ISA

    Counts towards annual limit

    £4,000

    LISA Bonus

    Max £1,000/year

    25%

    Help to Buy ISA

    To new applicants

    Closed

    Disclaimer: These rates are for general reference only and may not reflect your specific circumstances. Some values for future tax years are estimates based on announced policy. Always consult HMRC or a qualified tax advisor for definitive guidance.

    Last reviewed: