TAX RATES, ALLOWANCES AND RELIEFS FOR 2025/2026
£ (GBP) | ||
Income limit for personal allowance | £100,000 | |
Personal allowance | £12,570 | |
Married couple's allowance maximum amount (for those born before 6 April 1935) | £11,270 | |
Married couple's allowance minimum amount (for those born before 6 April 1935) | £4,360 | |
Transferable Tax Allowance for married couples and civil partners | £1,260 | |
Blind person's allowance | £3,130 | |
Income Tax Rates / Savings rates |
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Rate on taxable income | Band, £(GBP) | Rate,% |
Starting savings rate | 0 - £5,000 | 0* |
Basic rate | £0 - £37,700 | 20** |
Higher rate | £37,701 - £125,140 | 40*** |
Additional rate | over £125,140 | 45**** |
* Starting savings rate is available for savings income only. The rate 0% is not available if taxable non-savings income exceeds £5,000. | ||
Personal Savings Allowance - £500 / £1,000 (for basic rate taxpayers / for higher taxpayers) | ||
Dividend Allowance of £500 is tax free. | ||
** except dividends (8.75%) | ||
*** except dividends (33.75%) | ||
**** except dividends (39.35%) | ||
National Insurance Contributions |
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Weekly earnings £(GBP) | Not contracted out | |
Class I (employment) Employee’s rate | ||
Up to £242 | Nil | |
£242.01 to £967 | 8% | |
Over £967 | 2% | |
Employer’s rates | ||
Employment allowance, per employer, per year* | £10,500 | |
Up to £96 | Nil | |
Above £96 | 15.0% | |
Class 2 | ||
Small Profits Threshold is £6,845 per year | ||
Class 2 rate per week is £0 (£3.50 voluntary Below Small Profits Threshold) | ||
Class 4 | ||
Lower annual earnings limit is £12,570 | ||
Upper annual earnings limit is £50,270 | ||
Class 4 rate below lower earnings limit | 0% | |
Class 4 rate between lower and upper earnings limit | 6% | |
Class 4 rate above upper earnings limit | 2% | |
* The previous limit restricting availability of the employment allowance to smaller employers will be removed from the 2025/26 tax year. Previously, employers were only eligible for the employment allowance if their total secondary Class 1 liability in the previous tax year was under £100,000. | ||
* No employers NIC for employees aged under 21 (and apprentices up to age 25) on earnings up to £967 per week (the upper earnings limit). | ||
Capital Gains Tax |
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Rates for gains on assets other than residential property and carried interest: | ||
Standard rate taxpayers | 18% | |
Higher& additional rate taxpayers | 24% | |
Rate for trustees and personal representatives for gains on assets other than residential property and carried interest: | ||
Standard rate taxpayers | 24% | |
Higher& additional rate taxpayers | 24% | |
Individual annual exemption | £3,000 | |
Trusts annual exemption | £1,500 | |
Business asset disposal relief: lifetime limit on qualifying gains | £1,000,000 | |
Investors’ relief: lifetime limit on gains for external investors | £1,000,000 | |
Rate on gains subject to business asset disposal relief | 14% / 14% | |
Rate on gains subject to investors’ relief | 14% / 14% | |
Rates for individuals for gains on residential property not eligible for Private Residence Relief) | 18% / 24% | |
Rates for individuals (for gains on carried interest) | 32% / 32% | |
Rates for trustees and personal representatives for gains on residential property not eligible for Private Residence Relief) | 24% / 24% | |
Rates for personal representatives (for gains on carried interest) | 32% / 32% | |
Temporary Repatriation Facility |
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Rate of designated foreign income and gains (FIG) | 12% | |
Individual Savings Accounts (ISAs) |
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Max annual contributions – Total overall annual investment limit a combination of amounts between a Cash and Stocks and Shares NISA, up to the overall annual limit of £20,000. | £20 000 |