Tax tables 2025/26

1 minute read

Main personal allowances and reliefs	25/26	24/25
Personal allowance*	£12,570	£12,570
Marriage/civil partners’ transferable allowance	£1,260	£1,260
Blind person’s allowance	£3,130	£3,070
Rent-a-room relief	£7,500	£7,500
Property allowance and trading allowance (each)	£1,000	£1,000

* Personal allowance reduced by £1 for every £2 of adjusted net income over £100,000

UK taxpayers excluding Scottish taxpayers’ non-dividend, non-savings income	25/26	24/25
20% basic rate on taxable income up to	£37,700	£37,700
40% higher rate on next slice of income over	£37,700	£37,700
45% additional rate on income over	£125,140	£125,140

Scottish taxpayers – non-dividend, non-savings income	25/26	24/25
19% starter rate on taxable income up to	TBA	£2,306
20% basic rate on next slice up to	TBA	£13,991
21% intermediate rate on next slice up to	TBA	£31,092
42% higher rate on next slice up to	TBA	£62,430
45% advanced rate on next slice up to	TBA	£125,140
48% top rate on income over	TBA	£125,140

All UK taxpayers
Starting rate at 0% on band of savings income up to**	£5,000	£5,000
Personal savings allowance at 0%: Basic rate Higher rate Additional rate	£1,000 £500 £0	£1,000 £500 £0
Dividend allowance at 0%: All individuals	£500	£500
Tax rates on dividend income: Basic rate	8.75%	8.75%
Higher rate	33.75%	33.75%
Additional rate	39.35%	39.35%
Trusts: Income exemption generally	£500	£500
Rate applicable to trusts: Dividends	39.35%	39.35%
Other income	45%	45%

** Not available if taxable non-savings income exceeds the starting rate band

High Income Child Benefit Charge: 1% of benefit per £200 of adjusted net income between £60,000 and £80,000

	25/26	24/25
Lump sum and death benefit allowance	£1,073,100	£1,073,100
Lump sum allowance	£268,275	£268,275
Money purchase annual allowance	£10,000	£10,000
Annual allowance*	£60,000	£60,000
Annual allowance charge on excess is at applicable tax rate(s) on earnings

* Reduced by £1 for every £2 of adjusted income over £260,000 to a minimum of £10,000, subject to threshold income being over £200,000

	25/26	24/25
Total Individual Savings Account (ISA) limit, excluding Junior ISAs (JISAs)	£20,000	£20,000
Lifetime ISA	£4,000	£4,000
JISA/Child Trust Fund	£9,000	£9,000
Venture Capital Trust (VCT) at 30%	£200,000	£200,000
Enterprise Investment Scheme (EIS) at 30%*	£2,000,000	£2,000,000
EIS eligible for CGT deferral relief	No limit	No limit
Seed EIS (SEIS) at 50%	£200,000	£200,000
SEIS CGT reinvestment relief	50%	50%

*Above £1,000,000 investment must be in knowledge-intensive companies

Class 1	25/26
Class 1	Employee	Employer
NICs rate	8%	15%
No NICs for employees generally on the first	£242 pw	£96 pw
No NICs for younger employees* on the first	£242 pw	£967 pw
NICs rate charged up to	£967 pw	No limit
2% NICs on earnings over	£967 pw	N/A

*No employer NICs on the first £967 pw for employees generally under 21 years, apprentices under 25 years and veterans in first 12 months of civilian employment. No employer NICs on the first £481 pw for employees at freeports and investment zones in Great Britain in the first 36 months of employment

Employment allowance			£10,500
Per business – not available if sole employee is a director
Class 1A Employer
On most employees’ and directors’ taxable benefits		15%
Class 2 Self-employed Flat rate per week (voluntary)	£3.50	(£182.00 pa)
Small profits threshold		£6,845
Class 4 Self-employed On annual profits of	£12,570 to £50,270:	6%
	Over £50,270:	2%
Class 3 Voluntary flat rate per week	£17.75	(£923.00 pa)

	25/26	24/25
Annual exemption: Individuals, estates, etc	£3,000	£3,000
Trusts generally	£1,500	£1,500

	From 30/10/24	To 29/10/24
Below UK higher rate band Tax rate	18%	10%
Surcharge for residential property/carried interest*	0%/0%	8%/8%
Within UK higher and additional rate bands Tax rate	24%	20%
Surcharge for residential property/carried interest*	0%/4%	4%/8%
Trusts and estates Tax rate	24%	20%

* For 25/26, rate for carried interest for all tax bands is 32%

Business Asset Disposal Relief

14% (10% 24/25) on lifetime limit of £1,000,000 for trading businesses and companies (minimum 5% participation) held for at least 2 years

	25/26	24/25
Nil-rate band*	£325,000	£325,000
Residence nil-rate band*†	£175,000	£175,000
Rate of tax on excess	40%	40%
Rate if at least 10% of net estate left to charity	36%	36%
Lifetime transfers to and from certain trusts	20%	20%
Overseas domiciled spouse/civil partner exemption	£325,000	£325,000
* Up to 100% of the unused proportion of a deceased spouse’s/civil partner’s nil-rate band and/or residence nil-rate band can be claimed on the survivor’s death † Estates over £2,000,000: the value of the residence nil-rate band is reduced by 50% of the excess over £2,000,000
100% relief: businesses, unlisted/AIM companies, some farmland/buildings
50% relief: certain other business assets
Annual exempt gifts of: £3,000 per donor £250 per donee
Tapered tax charge on lifetime gifts between 3 and 7 years of death
Years 0–3 full 40% rate, then 8% less for each year until 0% at 7 or more years.

Stamp Duty and SDRT: Stocks and marketable securities 0.5%

Additional residential and all corporate residential properties
£40,000 or more – add 5% to SDLT rates, 6% to LBTT rates and 4% to most LTT rates

England & N Ireland – Stamp Duty Land Tax (SDLT) on slices of value from 1/4/25
Residential property	%	Commercial property†	%
Up to £125,000	0	Up to £150,000	0
£125,001–£250,000	2	£150,001–£250,000	2
£250,001–£925,000	5	Over £250,000	5
£925,001–£1,500,000	10
Over £1,500,000	12
First time buyers: 0% on first £300,000 for properties up to £500,000 Non-resident purchasers: 2% surcharge on properties £40,000 or more Residential properties bought by companies etc over £500,000: 17% of total consideration, subject to certain exemptions †0% for freeport and investment zone qualifying property in England only

Scotland – Land and Buildings Transaction Tax (LBTT) on slices of value
Residential property	%	Commercial property	%
Up to £145,000	0	Up to £150,000	0
£145,001–£250,000	2	£150,001–£250,000	1
£250,001–£325,000	5	Over £250,000	5
£325,001–£750,000	10
Over £750,000	12
First time buyers: 0% on the first £175,000

Wales – Land Transaction Tax (LTT) on slices of value
Residential property	%	Commercial property	%
Up to £225,000	0	Up to £225,000	0
£225,001–£400,000	6	£225,001–£250,000	1
£400,001–£750,000	7.5	£250,001–£1,000,000	5
£750,001–£1,500,000	10	Over £1,000,000	6
Over £1,500,000	12

Taxable amount based on original list price and CO₂ emissions in g/km.

Zero emission cars 3%

Petrol and diesel hybrids with CO₂ emissions 1–50g/km

Range – electric-only miles	< 30	30–39	40–69	70–129	130+
	15%	13%	9%	6%	3%

All non-diesel cars over 50g/km CO₂	51–54	55 & over
	16%	17%*–37%

*Increased for every extra 5g/km by 1% up to the maximum 37%

Diesels not meeting RDE2: add 4% to non-diesel rates, up to 37%

Fuel benefit – taxable amount for private use	25/26	24/25
CO₂ % charge used for car benefit multiplied by	£28,200	£27,800

Plant & machinery (P&M) 100% annual investment allowance (1st year)				£1,000,000
P&M allowance for companies (1st year)*				100%
Special rate P&M allowance for companies (1st year)*				50%
P&M**				18%
Patent rights and know-how**				25%
Special rate P&M e.g. long-life assets and integral features of buildings**				6%
Structures and buildings (straight line)†				3%
Motor cars
CO2 emissions of g/km:	0*		1–50	Over 50
Capital allowance:	100% first year		18% pa^**	6% pa^**
New and unused only Annual reducing balance †10% for freeports & investment zones in Great Britain*
Research and Development (R&D)
Capital expenditure		100%
R&D merged scheme		20%
R&D intensive SME payable credit		14.5%
R&D intensive SME intensity ratio		30%

*Weekly rates for 2025/26*
Statutory Pay Rates Based on minimum average earnings of at least TBA pw:
*Statutory Sick Pay*		TBA standard rate
*Statutory Maternity Pay/Statutory Adoption Pay*		First 6 weeks: 90% of average weekly pay Next 33 weeks: 90% of average weekly pay up to £187.13
*Statutory Paternity Pay*		90% of average weekly pay up to TBA
*Shared Parental Pay*		Up to 37 weeks: 90% of average weekly pay up to TBA
Child Benefit (see 'Income Tax – High Income Child Benefit Charge')
First or only child		£26.05
Each subsequent child		£17.25
Scottish Child Payment
For certain benefit claimants, per child under 16		TBA
National Living Wage (NLW)/National Minimum Wage (NMW)
	NLW 21 and over	NMW 18–20	NMW Under 18/apprentice
Yr to 31/3/25 £/hr	£11.44	£8.60	£6.40
Yr to 31/3/26 £/hr	£12.21	£10.00	£7.55

Income tax, NICs and capital gains tax – Self-assessment
31 Jan in tax year Following 31 July Following 31 Jan	}	Normally 50% of previous year’s income tax (less tax deducted at source) and class 4 NICs Balance of income tax, class 4 NICs and CGT, plus class 2 NICs paid voluntarily

Inheritance tax
On death:			Normally 6 months after end of month of death
Lifetime transfer 6 April–30 September:			30 April in following year
Lifetime transfer 1 October–5 April:			6 months after end of month of transfer
Capital gains tax – residential UK property
Report and pay within 60 days of completion of conveyance of the property
Corporation tax – Self-assessment
Profits under £1,500,000: 9 months + 1 day after end of accounting period
Profits £1,500,000–£20,000,000: normally payable in 7th, 10th, 13th and 16th months after start of the accounting period Profits over £20,000,000: normally payable in 3rd, 6th, 9th and 12th months after start of the accounting period
Growing companies: no instalments where profits are £10,000,000 or less and the company was not a large company for the previous year.

Make payment on the previous working day where the due date falls on a weekend/bank holiday.

Every month

19 Submit CIS contractors’ monthly return.
22 PAYE/NICs/CIS deductions paid electronically for period ending 5th of the month (19th if not paying electronically).

Month end

Submit CT600 for year ending 12 months previously.
Last day to amend CT600 for year ending 24 months previously.

April 2025

1 Residential SDLT threshold reverts to £125,000 with 2% rate then applying up to £250,000. First-time-buyer thresholds reduced by £125,000. SDLT on additional residential properties surcharge increased by 2%.

6 Employers’ NIC rate increased by 1.2% and secondary threshold lowered to £5,000. Employment allowance per business increased to £10,500. Increases to voluntary class 2 and class 3 NICs. Car and van fuel benefit and van benefit charges rise. CGT for carried interest increases to 32%. CGT business asset disposal relief increased by 4%. National minimum wage rates rise.

July 2025

5 Last date to agree a new PAYE Settlement Agreement (PSA) for 2024/25.

6 Deadline for employers to submit forms P11D (expenses) and P11D (b) (benefits) for 2024/25 to HMRC and provide copies to employees.

22 Pay class 1A NICs (19 July if not paying electronically).

31 Confirm tax credit claims for 2024/25 and renewal for 2025/26. Second payment on account for 2024/25 income tax and class 4 NICs.

August 2025

1 Penalty of 5% of the tax due or £300, whichever is the greater, where the 2023/24 tax return has not been filed.

October 2025

5 Deadline to register for self-assessment for 2024/25.
22 Pay tax and class 1B NICs on PSAs (19th if not paying electronically).
31 Deadline for 2024/25 tax return if filed on paper.

December 2025

30 Deadline to submit 2024/25 tax return online to have underpaid PAYE tax collected through the 2026/27 tax code.

January 2026

31 Submit 2024/25 self-assessment tax return online. Pay balance of 2024/25 income tax, class 4 NICs, CGT, class 2 NICs paid voluntarily plus first payment on account for 2025/26 income tax and class 4 NICs.

February 2026

1 Initial penalty imposed where the 2024/25 tax return has not been filed or has been filed on paper after 31 October 2025.

March 2026

3 First 5% penalty imposed on 2024/25 tax unpaid on 3 March.

April 2026

6 Making Tax Digital for Income Tax Self-Assessment starts for self-employed workers and landlords with qualifying income over £50,000.

Tax treatment varies according to individual circumstances and is subject to change.

Advice on Cash on Deposits, National Savings Products, Inheritance Tax Planning and Tax Planning are not regulated by the Financial Conduct Authority.

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	Annual	Weekly
New state pension	£11,973.00	£230.2
Basic state pension – single person^*	£9,167.60	£176.30
Basic state pension – spouse/civil partner^*	TBA	TBA

Standard rate	20%
Domestic fuel	5%
Installation of energy saving materials (except Northern Ireland)	0%
Registration level £90,000	Deregistration £88,000
Flat rate scheme turnover limit	£150,000
Cash and annual accounting schemes turnover limit	£1,350,000

	25/26	24/25
Zero emission: chargeable amount	Nil	Nil
Other vans: chargeable amount	£4,020	£3,960
Fuel: chargeable amount	£769	£757

Cars and vans first 10,000 miles	45p per mile	then 25p per mile
Qualifying passenger	5p per mile
Motorcycles	24p per mile	Bicycles 20p per mile

Income tax

Registered pensions

State pensions

Tax incentivised investments

National Insurance contributions

Capital Gains Tax

Inheritance Tax

Stamp Duties and Property Taxation Taxes

Corporation Tax

Value Added Tax

Car benefits

Vans - for private use

Tax-free business mileage allowance - own vehicle

Main capital and other allowances

Social Security benefits

Main due dates for tax payments

2025/26 tax calendar

Weekly Comment: UK economy stagnates

MPS September Newsletter

Registered office

Income tax

Registered pensions

State pensions

Tax incentivised investments

National Insurance contributions

Capital Gains Tax

Inheritance Tax

Stamp Duties and Property Taxation Taxes

Corporation Tax

Value Added Tax

Car benefits

Vans - for private use

Tax-free business mileage allowance - own vehicle

Main capital and other allowances

Social Security benefits

Main due dates for tax payments

2025/26 tax calendar

Related articles

Weekly Comment: UK economy stagnates

MPS September Newsletter

Registered office