Tax Rates & Table
Tax Rates Allowances, Reliefs and Credits
| Income Tax – taxable bands | 2024-25 | 2025-26 |
| Starting rate for savings: 0% | £0 -5,000 | £0 -5,000 |
| Basic rate: 20% | £0 -37,700 | £0 -37,500 |
| Higher rate: 40% | £37,701 -125,140 | £37,501 -125,140 |
| Additional Rate: 45% | £125,140 + | £125,140 + |
| Dividends (effective rate) | ||
| Personal dividend allowance – first £500 | 0% | 0% |
| Basic rate taxpayers | 8.75% | 8.75% |
| Higher rate taxpayers | 33.75% | 33.75% |
| Additional rate taxpayers 45% | 39.35% | 39.35% |
| Discretionary and Relevant Property Trusts* | ||
| Standard rate band | £1,000 | £1,000 |
| Dividends (rate applicable to trusts – RAT) | 39.35% | 39.35% |
| Other income (rate applicable to trusts – RAT) | 45% | 45% |
| Interest In Possession Trusts | ||
| UK Dividends | 8.75% | 8.75% |
| Savings, rent and trading | 20% | 20% |
| Income Tax Allowances, Reliefs and Credits | ||
| Personal allowance (minimum) | £12,570 | £12,570 |
| Trading allowance | £1,000 | £1,000 |
| Property income allowance | £1000 | £1,000 |
| Personal saving allowance (interest) for BR tax payer | £1,000 | £1,000 |
| Personal saving allowance (interest) for HR tax payer | £500 | £500 |
| Personal saving allowance (interest) for AR tax payer | Nil | Nil |
| Personal dividend allowance | £500 | £1,000 |
| Rent-a-room tax free home income* *restricted to £3,750 if letting jointly | £7,500 | £7,500 |
| Transferable Tax Allowance for Married couples & Civil partners | £1,260 | £1,260 |
| Married couples/Civil partnerships allowance (age 75+)(max) | £11,080 | £11,080 |
| Married couples/Civil partnerships allowance (age 75+)(min) | £4,280 | £4,280 |
| Income limit | £37,000 | £37,700 |
| National Insurance Contributions | ||
| Class 1 NIC- Employee (2% NIC on earning over £50,000) | 8% | 8% |
| Class 1 NIC- Employer | 13.8% | 15% |
| LEL | £6,390 | £6,396 |
| PTH | £12,570 | £12,570 |
| STH | £9,100 | £5,000 |
| UEL | £50,270 | £50,270 |
| Self-Employed Class 2 Flat rate p/w | £3.50 | £0 |
| Small profit limit | £6,725 | £6,845 |
| Self-Employed Class 4 on profit £12570-£50,270 (2% NIC on earning over £50,270) | 6% | 6% |
| Voluntary Class 3 Flat rate p/w | £17.45 | £17.75 |
| Employment allowance per employer | £5,000 | £10,500 |
| Limits for other reliefs | ||
| Enterprise Investment Scheme (EIS) | 30% | 30% |
| Maximum Investment* | £1million | £1million |
| *Increased to 2,000,000 for investments in knowledge intensive businesses from 6 April 2018 | ||
| EIS capital gains re-investment | Unlimited | Unlimited |
| Seed Enterprise Investment Scheme (SEIS) | 50% | 50% |
| Maximum Investment | £200,000 | £200,000 |
| SEIS re-investment exemption | 50% | 50% |
| Venture Capital Trusts (VCT) | 30% | 30% |
| Maximum Investment | £200,000 | £200,000 |
| Capital Gains Tax | ||
| Standard rate taxpayers | 10% | 10% |
| Additional rate taxpayers | 20% | 20% |
| Discretionary and Interest in Possession Trusts | 20% | 20% |
| Residential property gain | ||
| Standard rate individuals | 18% | 18% |
| Higher rate taxpayers and trusts | 24% | 28% |
| Annual Exemptions | ||
| Individuals | £3,000 | £3,000 |
| Most trusts | £1,500 | £1,500 |
| Chattels (5/3 taxable on excess above) | £6,000 | £6,000 |
| Entrepreneurs’ & Investor Relief | ||
| Entrepreneurs relief (in lifetime) *ER- 2 years holding & 5% conditions need to be satisfy | £1million | £1million |
| Investor Relief | £10m | £10m |
| ER & IR rate | 10% | 14% |
| Pensions | ||
| Lifetime allowance | no cap | no cap |
| Lifetime allowance charge | (Lump sum) 55% | (Lump sum) 55% |
| Annual allowance | £60,000 | £60,000 |
| Annual allowance minimum | £10,000 | £10,000 |
| Threshold income limit | £200,000 | £200,000 |
| Adjusted income limit | £260,000 | £260,000 |
| Maximum tax free cash | 25% of pension benefit value | 25% of pension benefit value |
| Tax Free Savings | ||
| ISA annual limit | £20,000 | £20,000 |
| Junior ISA annual limit | £9,000 | £9,000 |
| Lifetime ISA annual limit | £4,000 | £4,000 |
| Help to buy ISA monthly limit | £200 | £200 |
| Inheritance Tax | ||
| Nil rate band | £325,000 | £325,000 |
| Residence nil rate band | £175,000 | £175,000 |
| Annual exempt amount | £3,000 | £3,000 |
| Rate on death (on excess) | 40% | 40% |
| Lifetime transfer to trust | 20% | 20% |
| Corporation Tax | ||
| Company Profits including Gain: Main rate Small profit rate Marginal rate (Standard marginal relief fraction 3/200) | 25% 19% 26.5% | 25% 19% 26.5% |
| Patent Box | 10% | 10% |
| Value Added Tax | ||
| Standard rate | 20% | 20% |
| Reduced rate | 5% | 5% |
| VAT fraction | 1/6 | 1/6 |
| Registration Limit | £90,000 | £90,000 |
| De-registration Limit | £88,000 | £88,000 |
| Flat rate scheme turnover limit | £150,000 | £150,000 |
| Cash and annual accounting turnover limit | 1,350,000 | 1,350,000 |
| Capital Allowances | ||
| Annual Investment allowance (AIA) full expensing (£1m) | 100% | 100% |
| FYA (new zero emission vehicles and car with CO2 50g/km or less) | 100% | 100% |
| Main rate (P&M- annual reducing balance) | 18% | 18% |
| Special rate | 6% | 6% |
| Structures and buildings (SL) | 3% | 3% |
| Structures and buildings (SL)-in freeport tax site (until 30 September 2031) | 10% | 10% |
| Full expensing/Super deduction (company only) | ||
| -New main rate assets | 100% | 100% |
| -New special rate assets | 50% | 50% |
| Research and Development | ||
| R&D for SME (with10% credit for loss making SMEs) | 186% | 186% |
| R&D- Capital expenditure | 100% | 100% |
