Personal Income Tax Rates and Bands 2025/26

 
Non-Savings and Non-Dividend Income in England Wales and Northern Ireland:  2025/26
Basic rate: 20% £0 - £37,700
Higher rate: 40% £37,701 - £125,140
Additional rate: 45% Above £125,140

Dividend and Savings Income in UK 2025/65 2024/25
Dividends at basic rate 8.75% 8.75%
Dividends at higher rate  33.75% 33.75%
Dividends at additional rate 39.35% 39.35%
Savings at basic rate 20%* 20%
 Savings at higher rate 40%   40%  
 Savings at additional rate 45%   45%  
*0% Starting rate up to £5,000 of savings. Only available if taxable non-savings and non-dividend income exceeds this limit

Personal allowances 2025/26 2024/25
Personal allowance*  £12,570 £12,570
Dividend allowance  £500 £500
Maximum married couple’s allowance for those born before 6 April 1935* £11,270 £11,080
Minimum  married couple's allowance £4,360 £4,280
  Income limit for married couple's allowance: born before 1935
£37,700  
£37,000
  Marriage allowance**
£1,260  

Micro entrepreneur’s allowance (property or trading income)  £1,000  £1,000
Income limit for personal allowance* £100,000 £100,000
Blind person’s allowance £3,130 £3,070
Rent-a-room relief £7,500 £7,500
Personal savings allowance for basic rate taxpayers £1,000 £1,000
Personal savings allowance for higher rate taxpayers  £500 £500
Personal savings allowance for additional rate taxpayers  £0 £0
*Reduces by £1 for every £2 adjusted net income over PA limit
**One spouse/civil partner can transfer up to £1,260 of their unused Personal Allowance and their spouse/partner is not a higher or additional rate tax payer

National insurance 2025/26 2024/25
Lower earnings limit, primary class 1 (per week)  £125 £123
Upper earnings limit, primary class 1 (per week) £967 £967
Apprentice upper secondary threshold (AUST) for under 21s/25s £967 £967
Primary threshold (per week) £242 £242
Secondary threshold (per week) £96 £175
Employment allowance (per year/employer) £5,000 £5,000
Employee’s primary class 1 rate between primary threshold and upper earnings limit* 8% 8%
Employee’s primary class 1 rate above upper earnings limit 2% 2%
Employer's secondary class 1 rate above secondary threshold*  15% 13.8%
Class 2 small profits threshold (per year) £6,845 £6,725
Class 2 rate per week above small  profits threshold £3.50 £3.45
Class 3 voluntary rate (per week)  £17.75 £17.45
Class 4 lower profits limit £12,570 £12,570
Class 4 upper profits limit £50,270 £50,270
Class 4 rate between lower profits limit and upper profits limit  6% 6%
Class 4 rate above upper profits limit 2% 2%

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


EIS and VCTs 2025/26 2024/25
Enterprise Investment Scheme (EIS) * (maximum investment per year) £1,000,000 £1,000,000
Venture Capital Trust (VCT) (maximum investment per year) £200,000 £200,000
* £2m if knowledge intensive shares

Individual Savings Account (ISA) 2025/26 2024/25
ISA (annual allowance)  £20,000 £20,000
Junior ISA (annual allowance)  £9,000 £9,000
Lifetime ISA (annual allowance)  £4,000 £4,000

Capital Gains Tax 2025/26 2024/25
Basic Rate  18%  10%
Higher Rate  24%  20%
Basic Rate but for sale of residential property*  18% 18%
Higher rate but for sale of residential property*  24% 24%
Annual exemption – individuals, personal representatives and trusts for disabled persons £3,000 £3,000
Annual exemption – other trusts £1,500 £1,500
Business Assets Disposal Relief lifetime limit £1,000,000 £1,000,000
Business Assets Disposal Relief / Investors’ rate 14% 10%
Chattels exemption  £6,000 £6,000
*Residential property not covered by private residence relief. Carried interest at 32%

Inheritance tax 2025/26 2024/25
Nil-rate band £325,000 £325,000
Residence nil-rate band (RNRB)* £175,000 £175,000
  Standard rate40%  
Reduced rate** 36% 36%
Rate for chargeable lifetime transfers 20% 20%
Gifts to charities Unlimited Unlimited
  Gifts to spousesUnlimited  Unlimited  
Small gifts to same person £250 £250
Annual gifting exemption £3,000 £3,000
Wedding gifts to children £5,000 £5,000
Wedding gifts to grandchildren  £2,500 £2,500
Wedding gifts to any other person £1,000 £1,000
*Tapered if the net estate is worth over £2m 
**Available if 10% of net estate left to charity

  Child benefit
2025/26 per week 
2024/25 per week 
  First child
£26.05  
£25.60  
  Other children
  £17.25  
£16.95  

  Pension credit
2025/26 per week 
2024/25 per week 
  Single Person
£227.10  
£218.15  
  Couple
£346.60  
£332.95  

 Key benefits
2025/26 per week 
2024/25 per week 
  Jobseekers Allowance (25+)
Up to £92.50 per single person 
Up to £90.50 per single person
  Old State Pension (reached SPA by 05.04.2016)   
  £176.45  
£169.50  
  Addition for spouse / civil partner
  £105.70  
£101.55  
  New State Pension (post 05.04.2016)
£230.25  
£221.20  

Due Dates for Tax Payment
Income Tax
Tax
Due
  Income Tax - Interim Payments31st January during the tax year and 31st July following end of tax year
  Income Tax - Final Payment31st January following end of tax year
  Capital Gains Tax31st January following end of tax year / Within 60 days if UK residential property
  Inheritance Tax - DeathWithin six months after the end of the month of death
  Inheritance Tax - Lifetime TransferWithin six months after the end of the month of transfer
  Corporation Tax - Profits up to £1.5m9 months & 1 day after end of accounting period
  Corporation Tax - Profit between £1.5m and £20m14th day of months 7,10, 13 & 16 after start of a 12-month accounting period
  Corporation Tax  - Profit <£20m14th day of months 3,6,9 & 12 of a 12-month accounting period

Stamp Duty Land Tax, Land & Buildings Transaction Tax & Land Transaction Tax
For more information, including bands & rates, please visit the respective government webpage:
https://www.gov.uk/stamp-duty-land-tax 
https://revenue.scot/taxes/land-buildings-transaction-tax 
https://www.gov.wales/land-transaction-tax-introduction 

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