Tax rates & allowances
Tax rates at a glance.
The key rates and allowances for the current tax year, 6 April 2026 to 5 April 2027, with last year’s figures alongside for comparison.
Current tax year: 2026/27 (6 April 2026 to 5 April 2027), compared with 2025/26. Figures are from HMRC and GOV.UK. Rates change every Budget, so please call us on 01443 801330 to confirm the figures that apply to you today.
01
Income tax
Allowances
| Allowance | 2026/27 | 2025/26 |
|---|---|---|
| Personal Allowance | £12,570 | £12,570 |
| Income limit for Personal Allowance | £100,000 | £100,000 |
| Blind Person’s Allowance | £3,250 | £3,130 |
| Married Couple’s Allowance: maximum (born before 6/4/35) | £11,700 | £11,270 |
| Married Couple’s Allowance: minimum | £4,530 | £4,360 |
| Dividend and savings allowances | ||
| Dividend Allowance | £500 | £500 |
| Personal Savings Allowance (basic rate taxpayer) | £1,000 | £1,000 |
| Personal Savings Allowance (higher rate taxpayer) | £500 | £500 |
| Starting rate for savings band | £5,000 | £5,000 |
The tax-free Personal Allowance stays at £12,570 in 2026/27. It goes down by £1 for every £2 of income above £100,000, so it is fully withdrawn once income reaches £125,140.
Income tax rates: England, Wales and Northern Ireland (2026/27)
| Band | Income | Other | Savings | Dividends |
|---|---|---|---|---|
| Basic rate | £1 to £37,700 | 20% | 20% | 10.75% |
| Higher rate | £37,701 to £125,140 | 40% | 40% | 35.75% |
| Additional rate | Over £125,140 | 45% | 45% | 39.35% |
From 6 April 2026 the basic and higher dividend rates rose by 2 percentage points (2025/26: 8.75% and 33.75%). The additional dividend rate stays at 39.35%. Income bands are taxable income after allowances.
Income tax bands for Scottish taxpayers
| Band | Rate | 2026/27 | 2025/26 |
|---|---|---|---|
| Starter rate | 19% | Up to £3,967 | Up to £2,827 |
| Basic rate | 20% | £3,968 to £16,956 | £2,828 to £14,921 |
| Intermediate rate | 21% | £16,957 to £31,092 | £14,922 to £31,092 |
| Higher rate | 42% | £31,093 to £62,430 | £31,093 to £62,430 |
| Advanced rate | 45% | £62,431 to £125,140 | £62,431 to £125,140 |
| Top rate | 48% | Over £125,140 | Over £125,140 |
Scottish rates apply to earnings and other non-savings, non-dividend income. Bands are income after allowances.
02
Capital Gains Tax
Rates and allowances
| 2026/27 | 2025/26 | |
|---|---|---|
| Annual exempt amount | £3,000 | £3,000 |
| All chargeable assets, including residential property | ||
| Within the basic rate band | 18% | 18% |
| Outside the basic rate band | 24% | 24% |
| Qualifying business disposals | ||
| Business Asset Disposal Relief lifetime limit | £1 million | £1 million |
| Rate on gains qualifying for BADR | 18% | 14% |
03
Employment taxes
National Minimum Wage (hourly)
| Age / category | From 1 Apr 2026 | Apr 2025 to Mar 2026 |
|---|---|---|
| National Living Wage: age 21 and over | £12.71 | £12.21 |
| Age 18 to 20 | £10.85 | £10.00 |
| Under 18, and apprentices | £8.00 | £7.55 |
National Insurance for employees
| 2026/27 | 2025/26 | |
|---|---|---|
| Lower earnings limit (LEL) | £6,708 | £6,500 |
| Primary threshold (PT) | £12,570 | £12,570 |
| Upper earnings limit (UEL) | £50,270 | £50,270 |
| Earnings between the LEL and the PT | 0% | 0% |
| Earnings between the PT and UEL | 8% | 8% |
| Earnings above the UEL | 2% | 2% |
| Employers | ||
| Secondary threshold | £5,000 | £5,000 |
| Employer rate (secondary Class 1 and Class 1A) | 15% | 15% |
| Employment Allowance | £10,500 | £10,500 |
Benefits in kind
| 2026/27 | 2025/26 | |
|---|---|---|
| Van benefit | £4,170 | £4,020 |
| Van fuel benefit | £798 | £769 |
| Car fuel benefit multiplier | £29,200 | £28,200 |
National Insurance for the self-employed
| 2026/27 | 2025/26 | |
|---|---|---|
| Class 2 NICs: mandatory | £nil | £nil |
| Class 2 NICs: voluntary (per week) | £3.65 | £3.50 |
| Small profits threshold (SPT) | £7,105 | £6,845 |
| Lower profits limit (LPL) | £12,570 | £12,570 |
| Upper profits limit (UPL) | £50,270 | £50,270 |
| Class 4 on profits below the LPL | 0% | 0% |
| Class 4 on profits between the LPL and UPL | 6% | 6% |
| Class 4 on profits above the UPL | 2% | 2% |
04
Business taxes
VAT registration thresholds
| 2026/27 | 2025/26 | |
|---|---|---|
| Registration threshold | £90,000 | £90,000 |
| Deregistration threshold | £88,000 | £88,000 |
Corporation Tax
| FY to 31 Mar 2027 | FY to 31 Mar 2026 | |
|---|---|---|
| Main rate (profits over £250,000) | 25% | 25% |
| Small profits rate (profits under £50,000) | 19% | 19% |
| Marginal relief lower limit | £50,000 | £50,000 |
| Marginal relief upper limit | £250,000 | £250,000 |
| Marginal relief standard fraction | 3/200 | 3/200 |
Stamp Duty Land Tax (England and Northern Ireland)
| Threshold | From 1 April 2025 (current) |
|---|---|
| Residential nil-rate threshold | £125,000 |
| First-time buyers’ threshold (property worth £500,000 or less) | £300,000 |
Property in Wales is subject to Land Transaction Tax instead, with its own thresholds. Ask us for the current figures.
Rates are only half the story.
Knowing how they apply to your income, profits and plans is where we add value. Talk to us about your situation.