Tax Rates & Allowances
It is not intended to cover every aspect of this year's tax figures and is designed to act as overview only. No liability is accepted for any action taken or refrained from in consequence of its contents. Advice should always be sought from a professional.
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| Band & Rates | 2026 / 2027 | 2025 / 2026 |
| Basic Rate - income up to | £37,700 | £37,700 |
| Main Basic Rate | 20% | 20% |
| Savings Basic Rate | 20% | 20% |
| Default Basic Rate | 20% | 20% |
| Starting rate for savings income | 0% | 0% |
| Starting Rate limit (saving income) | £5,000 | £5,000 |
| Dividend ordinary rate – for dividends otherwise taxable at the basic rate | 10.75% | 8.75% |
| Higher Rate - income over | £37,700 | £37,700 |
| Main Higher Rate | 40% | 40% |
| Savings Higher Rate | 40% | 40% |
| Default Higher Rate | 40% | 40% |
| Dividend upper rate – for dividends otherwise taxable at the higher rate | 35.75% | 33.75% |
| Additional Rate - income over | £125,140 | £125,140 |
| Main Additional Rate | 45% | 45% |
| Savings Additional Rate | 45% | 45% |
| Default Additional Rate | 45% | 45% |
| Dividend additional rate – for dividends otherwise taxable at the additional rate | 39.35% | 39.35% |
| Trustee's Income | ||
| Thresholds | £500 de minimis trusts amount | £500 de minimis trusts amount |
| Dividend Ordinary Rate | 10.75% | 8.75% |
| Default Basic Rate | 20% | 20% |
| Dividend trust rate for accumulated and discretionary dividend income | 39.35% | 39.35% |
| Trust rate for other accumulated and discretionary income | 45% | 45% |
| Income Tax Allowances | 2026 / 2027 | 2025 / 2026 |
| Personal Allowance | £12,570 | £12,570 |
| Income limit for Personal Allowance | £100,000 | £100,000 |
| Income limit for married couples allowance | £39,200 | £37,000 |
| Maximum Married couple’s allowance for those born before 6 April 1935 | £11,700 | £11,270 |
| Minimum Married couple’s allowance for those born before 6 April 1935 | £4,530 | £4,360 |
| Blind persons allowance | £3,250 | £3,130 |
| Rent a room relief allowance | £7,500 | £7,500 |
| Transferrable Marriage Allowance | £1,260 | £1,260 |
| Dividend Allowance | £500 | £500 |
| Personal savings allowance for basic rate taxpayer | £1,000 | £1,000 |
| Personal savings allowance for higher rate taxpayer | £500 | £500 |
| Qualifying Care Relief | 2026 / 2027 | 2025 / 2026 |
| Annual fixed amount | £20,440 | £19,690 |
| Weekly amount - children under 11 years | £435 | £415 |
| Weekly amount - children 11 years or older | £515 | £495 |
| Weekly amount - adults | £515 | £495 |
The amount of Income Tax relief available for foster carers and shared lives carers using Qualifying Care Relief will increase in line with CPI inflation. The changes will take effect from 6 April 2026, for the tax year 2026 to 2027.
National Minimum Wage
Use the National Minimum Wage calculator to check if you’re paying a worker the National Minimum Wage or if you owe them payments from past years. The rates, below, apply from 1 April 2026.
| Category of worker | Hourly Rate |
| Aged 21 and above (national living wage rate) | £12.71 |
| Aged 18 to 20 inclusive | £10.85 |
| Under 18 (but above compulsory school leaving age) | £8 |
| Apprentices aged under 19 | £8 |
| Apprentices aged 19 and over, but in the first year of their apprenticeship | £8 |
Student Loan Recovery
| Rate of threshold | Figures to use 2026/2027 |
| Employee earnings threshold for Plan 1 | £26,900 per year £2,241.66 per month £517.30 per week |
| Employee earnings threshold for Plan 2 | £29,385 per year £2,448.75 per month £565.09 per week |
| Employee earnings threshold for Plan 4 | £33,795 per year £2,816.25 per month £649.90 per week |
| Student loan deductions | 9% |
| Employee earnings threshold for Postgraduate Loan | £21,000 per year £1,750 per month £403.84 per week |
| Postgraduate loan deductions | 6% |
| Class 1 NICs: Employee and Employer rates and thresholds per week | 2026 / 2027 | 2025 / 2026 |
| Weekly Lower Earnings Limit (LEL) | £129 | £125 |
| Weekly Primary Threshold (PT) | £242 | £242 |
| Weekly Secondary Threshold (ST) | £96 | £96 |
| Upper Earnings (UEL) | £967 | £967 |
| Freeport upper secondary threshold | £481 | £481 |
| Investment Zone upper secondary threshold | £481 | £481 |
| Upper Secondary Threshold for U21’s | £967 | £967 |
| Apprentice Upper Secondary Threshold (AUST) for under 25s | £967 | £967 |
| Veterans upper secondary threshold | £967 | £967 |
| Employment Allowance (per employer) | £10,500/year | £10,500/year |
| Employee's (primary) Class 1 contribution rates (£ per week) | ||
| LEL - PT | 0% | 0% |
| PT - UEL | 8% | 8% |
| Above UEL | 2% | 2% |
| Maried woman's reduced rate for (primary) Class 1 contribution rates | ||
| Weekly earnings from between the PT and UEL | 1.85% | 1.85% |
| Weekly earnings from above UEL | 2% | 2% |
| Employer's (secondary) Class 1 contribution rates | ||
| Below ST | 0% | 0% |
| Above ST | 15% | 15% |
| Employer's (secondary) Class 1 contribution rates for employees under 21 | ||
| Below UST | 0% | 0% |
| Above UST | 15% | 15% |
| Employer's (secondary) Class 1 contribution rates for Apprentices under 25 | ||
| Below AUST | 0% | 0% |
| Above AUST | 15% | 15% |
| Employer’s (secondary) Class 1 contribution rates for qualifying veterans | ||
| Below Veterans Upper Secondary Threshold (VUST) | 0% | 0% |
| Above Veterans Upper Secondary Threshold (VUST) | 15% | 15% |
| Employer’s (secondary) Class 1 contribution rates for eligible employees of Freeports | ||
| Below Freeports Upper Secondary Threshold (FUST) | 0% | 0% |
| Above Freeports Upper Secondary Threshold (FUST) | 15% | 15% |
| Employer’s (secondary) Class 1 contribution rates for eligible employees of Investment Zones | ||
| Below Investment Zone Upper Secondary Threshold (IZUST) | 0% | 0% |
| Above Investment Zone Upper Secondary Threshold (IZUST) | 15% | 15% |
| Class 2 NICs: Self-employed rates and thresholds per week | 2026 / 2027 | 2025 / 2026 |
| Small Profits Threshold (SPT) | £7,105 | £6,845 |
| Lower Profits Threshold (LPT) | £12,570 | £12,570 |
| Annual profits | ||
| Below Small Profits Threshold (SPT) | £3.65 (Voluntary) | £3.50 (Voluntary) |
| Small Profits Threshold (SPT) to Lower Profits Threshold (LPT) | 0% | 0% |
| Above LPT | £0 | £0 |
| Special Class 2 rate for share fishermen | £4.30 | £4.15 |
| Special Class 2 rate for volunteer development workers | £6.45 | £6.25 |
| Class 3 NICs: Other rates and thresholds per week | 2026 / 2027 | 2025 / 2026 |
| Voluntary contributions | £18.40 | £17.75 |
| Class 4 NICs: Self-employed rates and thresholds per year | 2026 / 2027 | 2025 / 2026 |
| Lower Profits Limit (LPL) | £12,570 | £12,570 |
| Upper Profits Limit (UPL) | £50,270 | £50,270 |
| Below LPL | 0% | 0% |
| LPL to UPL | 6% | 6% |
| Above UPL | 2% | 2% |
| Class 1 NICs: Thresholds | Week | Month | Year |
| Lower earnings limit (LEL) | £129 | £559 | £6,708 |
| Primary Threshold (PT) | £242 | £1,048 | £12,570 |
| Secondary Threshold (ST) | £96 | £417 | £5,000 |
| Freeport UST | £481 | £2,083 | £25,000 |
| Investment Zone UST | £481 | £2,083 | £25,000 |
| Upper Secondary Threshold (under 21) (UST) and Apprentice Upper Secondary Threshold (apprentice under 25) (AUST) | £967 | £4,189 | £50,270 |
| Veterans UST | £967 | £4,189 | £50,270 |
| Upper earnings limit (UEL) | £967 | £4,189 | £50,270 |
Class 1 NICs: rates for employee (primary) contributions
| NICs category letter | Earnings at or above LEL up to and including PT | Earnings above PT up to and including UEL | Balance of earnings above UEL |
| A | 0% | 8% | 2% |
| B | 0% | 1.85% | 2% |
| C | NIL | NIL | NIL |
| D (Investment Zone — deferment) | 0% | 2% | 2% |
| E (Investment Zone — married women and widows reduced rate) | 0% | 1.85% | 2% |
| F (Freeport) | 0% | 8% | 2% |
| H (Apprentice under 25) | 0% | 8% | 2% |
| I (Freeport – married women and widows reduced rate) | 0% | 1.85% | 2% |
| J | 0% | 2% | 2% |
| K (Investment Zone - State Pensioner) | nil | nil | nil |
| M (under 21) | 0% | 8% | 2% |
| N (Investment Zone) | 0% | 8% | 2% |
| S (Freeport – state pensioner) | nil | nil | nil |
| V (Veteran) | 0% | 8% | 2% |
| Z (under 21 - deferment) | 0% | 2% | 2% |
Class 1 NICs: rates for employer (secondary) contributions
| NICs category letter | Earnings above ST up to and including LEL | Earnings above LEL up to and including Freeport and Investment Zone upper ST | Earnings above Freeport and Investment Zone UST up to and including UEL, UST for under 21s, apprentices and veterans | Balance of earnings above UEL, UST for under 21s, apprentices and veterans |
| A | 15% | 15% | 15% | 15% |
| B | 15% | 15% | 15% | 15% |
| C | 15% | 15% | 15% | 15% |
| D (Investment Zone - Deferment) | 0% | 0% | 15% | 15% |
| E (Investment Zone married women and widows reduced rate) | 0% | 0% | 15% | 15% |
| F (Freeport) | 0% | 0% | 15% | 15% |
| H (apprentice under 25) | 0% | 0% | 0% | 15% |
| I (Freeport – married women and widows reduced rate) | 0% | 0% | 15% | 15% |
| J | 15% | 15% | 15% | 15% |
| K (Investment Zone - State Pensioner) | 0% | 0% | 15% | 15% |
| L (Freeport – deferment) | 0% | 0% | 15% | 15% |
| M (under 21) | 0% | 0% | 0% | 15% |
| N (Investment Zone) | 0% | 0% | 15% | 15% |
| S (Freeport – State Pensioner) | 0% | 0% | 15% | 15% |
| V (Veteran) | 0% | 0% | 0% | 15% |
| Z (under 21 deferment) | 0% | 0% | 0% | 15% |
Class 1 NICs: Expenses & Benefits, Termination Awards and PSAs
| 2026 / 2027 | 2025 / 2026 | |
Class 1A National Insurance: expenses and benefits - You must pay Class 1A National Insurance on work benefits you give to your employees, for example a company mobile phone. You report and pay Class 1A on expenses and benefits at the end of each tax year. |
15% | 15% |
Class 1A National Insurance: termination awards and sporting testimonial payments - Class 1A National Insurance contributions are due on the amount of termination awards paid to employees which are over £30,000 and on the amount of sporting testimonial payments paid by independent committees which are over £100,000. You report and pay Class 1A on these types of payments during the tax year as part of your payroll. |
15% | 15% |
Class 1B National Insurance: PAYE Settlement Agreements (PSAs) - You pay Class 1B National Insurance if you have a PSA. This allows you to make one annual payment to cover all the tax and National Insurance due on small or irregular taxable expenses or benefits for your employees. |
15% | 15% |
| Child Benefit - £ per week | 2026 / 2027 | 2025 / 2026 |
| Eldest/Only Child | £27.05 | £26.05 |
| Other Children | £17.90 | £17.25 |
| Contributory and New Style ESA - Personal Allowances - £ per week | 2026 / 2027 | 2025 / 2026 |
| Single under 25 | £75.65 | £72.90 |
| Single 25 and over | £95.55 | £92.05 |
| Lone parent under 18 | £75.65 | £72.90 |
| Lone parent 18 and over | £95.55 | £92.05 |
| Components work-related activity | £37.95 | £36.55 |
| Components support | £50.35 | £48.50 |
| Other Allowances - £ per week | 2026 / 2027 | 2025 / 2026 |
| Guardian’s Allowance | £22.95 | £22.10 |
| Attendance Allowance Lower Rate - For those who need help or supervision during the day or at night. | £76.70 | £73.90 |
| Attendance Allowance Higher Rate - For those who need help or supervision during the day and at night, or if they are terminally ill. |
£114.60 | £110.40 |
| Carers Allowance. |
£86.45 | £83.30 |
| Annual level of benefit cap (Greater London) | 2026 / 2027 | 2025 / 2026 |
| Couples (with or without children) or single claimants with a child of qualifying age | £25,323 | £25,323 |
| Single adult households without children | £16,967 | £16,967 |
| Annual level of benefit cap (Rest of Great Britain) | 2026 / 2027 | 2025 / 2026 |
| Widowed Parent's AllowanceCouples (with or without children) or single claimants with a child of qualifying age | £22,020 | £22,020 |
| Single adult households without children | £14,753 | £14,753 |
| Bereavement Benefit (for deaths between 9 April 2001 & 5 April 2017) | 2026 / 2027 | 2025 / 2026 |
| Weekly Widowed Parent's Allowance | £156.65 | £150.90 |
| Bereavement Support Payment (for deaths occurring on or after 6 April 2017) | 2026 / 2027 | 2025 / 2026 |
| Standard Rate (lump sum) | £2,500 | £2,500 |
| Standard Rate monthly payments | £100 | £100 |
| Higher rate (lump sum) | £3,500 | £3,500 |
| Higer rate monthly payments | £350 | £350 |
Capital Limits
| Rules common to Income Support (IS), income-based Jobseeker’s Allowance (JSA), income-related Employment and Support Allowance (ESA) and Housing Benefit (HB) unless otherwise stated | 2026 / 2027 | 2025 / 2026 |
| Upper limit | £16,000 | £16,000 |
| Amount disregarded | £6,000 | £6,000 |
| Child disregarded - (not ESA or HB) | £3,000 | £3,000 |
| Amount disregarded (living in residential care or nursing homes RC/NH) | £10,000 | £10,000 |
| Rules common to Pension Credit and Housing Benefit | 2026 / 2027 | 2025 / 2026 |
| Upper limit - Pension Credit and those getting HB and Pension Credit Guarantee Credit | No limit | No limit |
| Amount disregarded - Pension Credit and HB for those above the qualifying age for Pension Credit | £10,000 | £10,000 |
| Amount disregarded (living in RC/NH) | £10,000 | £10,000 |
For a comprehesive list of Benefit rates, please Click Here.
Statutory maternity, paternity and adoption pay
| Type of payment or recovery | Figures to use 2026/2027 |
| Statutory Maternity Pay (SMP) - weekly rate for first six weeks | 90% of the employee's average weekly earnings |
| Statutory Maternity Pay (SMP) - weekly rate for remaining weeks | £194.32 or 90% of the employee's average weekly earnings, whichever is lower |
| Statutory Paternity Pay (SPP) - weekly rate | £194.32 or 90% of the employee's average weekly earnings, whichever is lowe |
| Statutory Adoption Pay (SAP) - for first 6 weeks | 90% of employee's average weekly earnings |
| Statutory Adoption Pay (SAP) - weekly rate for remaining weeks | £194.32 or 90% of the employee's average weekly earnings, whichever is lower |
| Statutory shared parental pay (ShPP) | £194.32 or 90% of the employee’s average weekly earnings, whichever is lower |
| Statutory Parental Bereavement Pay (SPBP) – weekly rate | £194.32 or 90% of the employee’s average weekly earnings, whichever is lower |
| Statutory Neonatal Care Pay (SNCP) — weekly rate | £194.32 or 90% of the employee’s average weekly earnings, whichever is lower |
| SMP/SPP/ShPP/SAP/SPBP or SNCP - proportion of your payments you can recover from HMRC | 92% if your total Class 1 National Insurance (both employee and employer contributions) is above £45,000 for the previous tax year
109% if your total Class 1 National Insurance for the previous tax year is £45,000 or lower |
Statutory Sick Pay
The amount of SSP you must pay an employee for each day they’re off work from the first day of illness (the daily rate) depends on the: employee’s average weekly earnings; number of ‘qualifying days’ they work each week. A daily rate will apply either based on the standard weekly rate or will be specific to the employee. The SSP daily rates and amounts to pay in the tables are based on the standard weekly rate.
| SSP 2026/2027 | Rate of payment or recovery (unrounded in brackets) |
| Daily rate - employees with 1 qualifying day in the week | £123.25 (£123.25) |
| Daily rate - employees with 2 qualifying days in the week | £61.63 (£61.625) |
| Daily rate - employees with 3 qualifying days in the week | £41.09 (£41.0833) |
| Daily rate - employees with 4 qualifying days in the week | £30.82 (£30.8125) |
| Daily rate - employees with 5 qualifying days in the week | £24.65 (£24.65) |
| Daily rate - employees with 6 qualifying days in the week | £20.55 (£20.5416) |
| Daily rate - employees with 7 qualifying days in the week | £17.61 (£17.6071) |
Car Benefits
The taxable benefit is calculated as a percentage of the list price of the car, on the day before it was first registered, plus certain accessories. This percentage depends upon the rate at which the car emits carbon dioxide (CO2), and the fuel type.
Company Car Tax for all cars
| CO2 (g/km) | Electric Range (Miles) | Appropriate % |
| 0 | N/A | 4% |
| 1-50 | >130 | 4% |
| 1-50 | 70-129 | 7% |
| 1.50 | 40-69 | 10% |
| 1-50 | 30-39 | 14% |
| 1-50 | <30 | 16% |
| 51-54 | 17% | |
| 55-59 | 18% | |
| 60-64 | 19% | |
| 65-69 | 20% | |
| 70-74 | 21% | |
| 75-79 | 22% | |
| 80-84 | 23% | |
| 85-89 | 24% | |
| 90-94 | 25% | |
| 95-99 | 26% |
| CO2 (g/km) | Electric Range (miles) | Appropriate % |
| 100-104 | 26% | |
| 105-109 | 27% | |
| 110-114 | 28% | |
| 115-119 | 29% | |
| 120-124 | 30% | |
| 125-129 | 31% | |
| 130-134 | 32% | |
| 135-139 | 33% | |
| 140-144 | 34% | |
| 145-149 | 35% | |
| 150-154 | 36% | |
| 155-159 | 37% | |
| 160+ | 37% |
For all cars, drivers must add 4% to their appropriate percentage if the car is propelled solely by diesel. This is capped at 37% until tax year 2027 to 2028, 38% in tax year 2028 to 2029 and 39% in tax year 2029 to 2030.
Cars that meet the Real Driving Emissions Step 2 (RDE2) standard are exempt from the diesel supplement. The RDE2 standard sets a maximum permitted level of car NOx emissions in real world driving situations, and it is measured through portable emissions-measuring equipment in a variety of real driving trips.
Plug-in Hybrid Electric Vehicles (PHEVs) first registered and made available from 1 January 2025 to 5 April 2028, under any emission standard other than Euro 6d-ISC-FCM or Euro 6e, have a deemed CO2 emission of 1 g/km.
Finding your CO2
To find out how much CO2 your company car emits, you may wish to do one of the following: check the cars V5 Registration Document; contact your Dealer; vist the Vehicle Certification Agency Website;.To access the HMRC Car & Fuel Benefits Calculator, please click here.
Company cars: advisory fuel rates
Petrol hybrid cars are treated as petrol cars for this purpose. If the employee pays for the full cost of all fuel for private journeys (usually including home to work) there will be no car fuel benefit. In all other cases the full tax charge will be due. The Car fuel benefit charge multiplier for 2026/2027 is £29,200. The flat-rate van fuel benefit charge will increase to £798.
| Engine size | Petrol | Diesel | LPG |
| 1400cc or smaller | 12p | N/A | 10p |
| 1401cc to 2000cc | 14p | N/A | 12p |
| Bigger than 2000cc | 22p | N/A | 19p |
| Less than 1600cc | N/A | 12p | N/A |
| 1601cc - 2000cc | N/A | 13p | N/A |
| Bigger than 2000cc | N/A | 18p | N/A |
Advisory electricity rate for fully electric cars from 1 March 2026
Amount per mile – Home charger: 7 pence | Public charger 15 pence. Electricity is not a fuel for car fuel benefit purposes.
Company vans
The taxable benefit for the unrestricted use of company vans is £4,170 (with no reduction for older vans) plus a further £798 of taxable benefit if fuel is provided by the employer for private travel.
| Van and fuel charge | Van | Fuel | Total |
| Tax (20% taxpayer) | £834 | £159.60 | £993.60 |
| Tax (40% taxpayer) | £1,668 | £319.20 | £1,987.20 |
| Tax (45% taxpayer) | £1,876.50 | £359.10 | £2,235.60 |
| Employer's class 1A NICs | £625.50 | £119.70 | £745.20 |
Fuel Benefit and Van Benefit charge
| Income Tax Allowances | 2026 / 2027 | 2025 / 2026 |
| Car fuel benefit charge multiplier | £29,200 | £28,200 |
| Van fuel benefit charge | £798 | £769 |
| Van benefit charge | £4,170 | £4,020 |
Employee vehicles: mileage payments for business travel
| Type of vehicle | Rate per business mile 2026-27 |
| Car | For tax purposes: 45p for the first 10,000 business miles in a tax year, then 25p for each subsequent mile.
For NICs purposes: 45p for all business miles |
| Motorcycle | 24p for both tax and NICs purposes and for all business miles |
| Cycle | 20p for both tax and NICs purposes and for all business miles |
Passenger payments: Cars and Vans
5p per passenger per business mile for carrying fellow employees in a car or van on journeys which are also work journeys for them. Only payments specifically for carrying passengers count and there is no relief if you receive less, or nothing at all.VED bands and rates for cars first registered on or after 1 April 2017
The changes to Vehicle Excise Duty rates to take effect from 1 April 2026 are set out in these tables
Tax year 2024 to 2025
| CO2 emissions (g/km) | Standard Rate | First Year Rate |
| 0 | £0 | £0 |
| 1-50 | £190 | £10 |
| 51-75 | £190 | £30 |
| 76-90 | £190 | £135 |
| 91-100 | £190 | £175 |
| 101-110 | £190 | £195 |
| 111-130 | £190 | £220 |
| 131-150 | £190 | £270 |
| 151-170 | £190 | £680 |
| 171-190 | £190 | £1,095 |
| 191-225 | £190 | £1,650 |
| 226-255 | £190 | £2,340 |
| Over 255 | £190 | £2,745 |
Tax year 2025 to 2026
| CO2 emissions (g/km) | Standard Rate | First Year Rate |
| 0 | £195 | £10 |
| 1-50 | £195 | £110 |
| 51-75 | £195 | £130 |
| 76-90 | £195 | £270 |
| 91-100 | £195 | £350 |
| 101-110 | £195 | £390 |
| 111-130 | £195 | £440 |
| 131-150 | £195 | £540 |
| 151-170 | £195 | £1,360 |
| 171-190 | £195 | £2,190 |
| 191-225 | £195 | £3,300 |
| 226-255 | £195 | £4,680 |
| Over 255 | £195 | £5,490 |
Tax year 2026 to 2027
| CO2 emissions (g/km) | Standard Rate | First Year Rate |
| 0 | £200 | £10 |
| 1-50 | £200 | £115 |
| 51-75 | £200 | £135 |
| 76-90 | £200 | £280 |
| 91-100 | £200 | £365 |
| 101-110 | £200 | £405 |
| 111-130 | £200 | £455 |
| 131-150 | £200 | £560 |
| 151-170 | £200 | £1,410 |
| 171-190 | £200 | £2,270 |
| 191-225 | £200 | £3,420 |
| 226-255 | £200 | £4,850 |
| Over 255 | £200 | £5,690 |
Budget 2018 announced that new diesel vehicles registered after 1 April 2018 that do not meet the real driving emission step 2 (RDE2) standard will be charged a supplement on their first year rate to the effect of moving up by one VED band.
Petrol and diesel cars with a list price of over £40,000 and zero emission cars with a list price over £50,000 in the registration year will pay an additional rate of £440 per annum on top of the standard rate, in the second to sixth years after the car’s first registration (known as the Expensive Car Supplement (ECS)).
VED bands and rates for cars registered on or after 1 March 2001
| VED Band | CO2 emissions (g/km) | Tax Year 2026 to 2027 | Tax Year 2025 to 2026 |
| A | Up to 100 | £20 | £20 |
| B | 101-110 | £20 | £20 |
| C | 111-120 | £35 | £35 |
| D | 121-130 | £170 | £165 |
| E | 131-140 | £200 | £195 |
| F | 141-150 | £225 | £215 |
| G | 151-165 | £275 | £265 |
| H | 166-175 | £325 | £315 |
| I | 176-185 | £360 | £345 |
| J | 186-200 | £410 | £395 |
| K | 201-225 | £445 | £430 |
| L | 226-255 | £760 | £735 |
| M | Over 255 | £790 | £760 |
K (Includes cars emitting over 225g/km registered before 23 March 2006)
Road Tax for cars & vans registered before 1 March 2001
| Engine Size | 2026 / 2027 | 2025 / 2026 |
| 1549cc and below | £230 | £220 |
| Above 1549cc | £375 | £360 |
Road Tax for vans registered after 1 March 2001
| Vehicle registration date | 2026 / 2027 | 2025 / 2026 |
| Early Euro 4 and Euro 5 compliant vans | £140 | £140 |
| All other vans | £360 | £345 |
- a man born before 6 April 1951
- a woman born before 6 April 1953
The basic State Pension is a regular payment from the government that you can get if you reached State Pension age before 6 April 2016. To get it, you must have paid or been credited with National Insurance contributions. The most you can currently get is £184.90 per week. The basic State Pension increases every year by whichever is the highest of the following:
- earnings - the average percentage growth in wages (in Great Britain)
- prices - the percentage growth in prices in the UK as measured by the Consumer Prices Index (CPI)
2.5%
| Basic state pension | 2026 / 2027 | 2025 / 2026 |
| Single person per year | £9,614.80 | £9,175.40 |
| Spouse/civil partner addition per year | £5,496.40 | £5,493.80 |
| Maximum age for tax relief | 74 | 74 |
| Minimum age for taking benefits | 55 | 55 |
| Lump sum and death benefit allowance | £1,073,100 | £1,073,100 |
| Lump Sum allowance | £268,275 | £268,275 |
| Annual allowance | £60,000 | £60,000 |
| Maximum tax-free lump sum | 25% | 25% |
| Money Purchase Annual Allowance | £10,000 | £10,000 |
| Tapered Annual Allowance (applies when an individual has ‘adjusted income’ over this amount provided the ‘threshold income’ test is met) | £260,000 | £260,000 |
New State Pension
You’ll be able to claim the new State Pension if you’re:- a man born on or after 6 April 1951
- a woman born on or after 6 April 1953
If you reached State Pension age before 6 April 2016, you’ll get the State Pension under the old rules instead. The earliest you can get the new State Pension is when you reach State Pension age. The most you can currently get is £241.30 per week or £12,548 per year..
Your National Insurance record
You’ll usually need at least 10 qualifying years on your National Insurance record to get any State Pension. They don’t have to be 10 qualifying years in a row.
This means for 10 years at least one or more of the following applied to you:
- you were working and paid National Insurance contributions
- you were getting National Insurance credits for example if you were unemployed, ill or a parent or carer
- you were paying voluntary National Insurance contributions
If you’ve lived or worked abroad you might still be able to get some new State Pension.
You might also qualify if you’ve paid married women’s or widow’s reduced rate contributions.
Working after State Pension age
You don’t have to stop working when you reach State Pension age but you’ll no longer have to pay National Insurance. You can also request flexible working arrangements.
Tax Free Savings Accounts
| Tax year 2026 to 2027 | Tax year 2025 to 2026 | |
| Individual Savings Account (ISA) subscription limit | £20,000 | £20,000 |
| Junior ISA subscription limit | £9,000 | £9,000 |
| Child Trust Fund (CTF) subscription limit | £9,000 | £9,000 |
| Group | 2026 / 2027 | 2025 / 2026 |
| Rates for gains on assets other than residential property and carried interestMain rates for individuals - Income Tax basic rate payer | 18% | 18% |
| Rates for gains on assets other than residential property and carried interestMain rates for individuals - Income Tax higher rate payer | 24% | 24% |
| Rates for individuals for gains on residential property which is not eligible for Private Residence Relief - Income Tax basic rate payer | 18% | 18% |
| Rates for individuals for gains on residential property which is not eligible for Private Residence Relief - Income Tax higher rate payer | 24% | 24% |
| Rates for individuals for gains on carried interest - Income Tax basic rate payer | N/A | 32% |
| Rates for individuals for gains on carried interest - Income Tax higher rate payer | N/A | 32% |
| Rate for trustees and personal representatives for gains on assets other than residential property and carried interest | 24% | 24% |
| Rate for trustees and personal representatives for gains on residential property which is not eligible for Private Residence Relief | 24% | 24% |
| Rate for personal representatives for gains on carried interest | N/A | 32% |
| Annual exempt amount (AEA) for individuals and personal representatives | £3,000 | £3,000 |
| AEA for most trustees | £1,500 | £1,500 |
| Rate on gains subject to business asset disposal relief | 18% | 14% |
| Rate on gains subject to investors’ relief | 14% | 14% |
| Business asset disposal relief: lifetime limit on qualifying gains | £1,000,000 | £1,000,000 |
| Investor's relief: lifetime limit on gains for external investors | £1 million | £1 million |
| Temporary Repatriation Facility | 12% | 12% |
From 6 April 2026, the tax regime for carried interest will sit wholly within the Income Tax framework. There is therefore no applicable Capital Gains Tax rate for carried interest for the tax year 2026 to 2027.
The Temporary Repatriation Facility (TRF) is available to former remittance basis users who have unremitted foreign income and gains for tax years prior to 2025 to 2026. Individuals can elect to pay tax at the TRF rate on offshore funds that they designate. The designated funds will then not be taxed on remittance to the UK. Former remittance basis users can also use the TRF to designate distributions from trust structures, which are matched to foreign income and gains which arose prior to April 2025.
| Level of profits | From 01/04/24 | From 01/04/25 | From 01/04/26 |
| Main rate | 25% | 25% | 25% |
| Small profits rate | 19% | 19% | 19% |
| Lower threshold | £50,000 | £50,000 | £50,000 |
| Upper threshold | £250,000 | £250,000 | £250,000 |
| Marginal relief standard fraction | 3/200ths | 3/200ths | 3/200ths |
Corporation Tax Allowances & Reliefs
| Financial Year 2026 to 2027 | Financial Year 2025 to 2026 | |
| Plant and machinery: main rate expenditure | 14% | 18% |
| Plant and machinery: special rate expenditure | 6% | 6% |
| Structures and Buildings Allowances(SBA) | 3% | 3% |
| Annual investment allowance (AIA) | £1million | £1million |
| Enhanced Capital Allowances in Freeports (ECA+) | 100% | 100% |
| Enhanced Capital Allowances Investment Zones | 100% | 100% |
| Enhanced Structures and Buildings Allowance in Freeports | 10% | 10% |
| Enhanced Structures and Buildings Allowance in Investment Zones | 10% | 10% |
| 50% Special Rate First Year allowance | 50% | 50% |
| Full Expensing: 100% First Year Allowance | 100% | 100% |
| R&D tax credits SME scheme | N/A | N/A |
| R&D SME payable credit | N/A | N/A |
| R&D Intensive SME additional deduction rate | 86% | 86% |
| R&D Intensive SME payable credit | 14.5% | 14.5% |
| R&D Intensive SME intensity ratio | 30% | 30% |
| R&D Expenditure Credit | N/A | N/A |
| R&D Merged Scheme Expenditure Credit | 20% | 20% |
| Patent Box | 10% | 10% |
| Film tax relief | 25% | 25% |
| Audio-Visual and Video Game expenditure credit | 34%, 39% 53% | 34%, 39% 53% |
| High-end TV tax relief | 25% or 34% | 25% or 34% |
| Videogames tax relief | 25% or 34% | 25% or 34% |
| Animation tax relief | 25% or 39% | 25% or 39% |
| Childrens TV tax relief | 25% or 39% | 25% or 39% |
| Open ended investment companies and authorised unit trusts | 20% | 20% |
The 40% Main Rate First-Year Allowance is available for qualifying expenditure incurred on or after 1 January 2026.
Film tax relief, high-end TV tax relief, animation tax relief and children’s TV tax relief will sunset from 1 April 2027. Companies can claim the Audio-Visual Expenditure Credit instead.
Video Games Tax Relief will sunset from 1 April 2027. Companies can claim the Video Games Expenditure Credit instead.
The Video Games Expenditure Credit has a rate of 34%. Under the Audio-Visual Expenditure Credit, film and high-end TV have a rate of 34% and children’s TV and animated productions have a rate of 39%. From 1 April 2024, low-budget films are eligible for a rate of 53%. From 1 January 2025, visual effects expenditure on films and high-end TV programmes is eligible for a rate of 39%.
For open ended investment companies and authorised unit trusts the applicable corporation tax rate is 20%
| Vat Rates | April 2026/2027 | April 2025/2026 |
| Standard Rate | 20% | 20% |
| Vat Fraction | 1/6 | 1/6 |
| Reduced Rate | 5% | 5% |
| Zero Rate | 0% | 0% |
| Exempt | N//A | N/A |
| Taxable Turnover Limits | Amounts |
| Registration - last 12 months or next 30 days over | £90,000 from 1 April 2026 |
| Deregistration - next 12 months under | £88,000 from 1 April 2026 |
| To join Cash accounting scheme - up to | £1,350,000 |
| To leave Cash accounting scheme - more than | £1,600,000 |
| To join Optional flat rate scheme - up to | £150,000 or less |
| To leave Optional flat rate scheme - more than | £230,000 |
| To join Annual accounting scheme - up to | £1,350,000 |
| To leave Annual accounting scheme - more than | £1,600,000 |
| Detail | 2026/2027 | 2025/2026 |
| Nil-rate band limit | £325,000 | £325,000 |
| Residence nil rate band limit | £175,000 | £175,000 |
| Taper threshold for residence nil-rate band | £2,000,000 | £2,000,000 |
| Rate of tax on balance: | ||
| Chargeable lifetime transfers | 20% | 20% |
| Transfers on, or within 7 years of, death | 40% | 40% |
| Reduced Rate (for estates leaving 10% or more to charity) | 36% | 36% |
| Years before death | 0 - 3 | 3 - 4 | 4 - 5 | 5 - 6 | 6 - 7 |
| Tax paid | 40% | 32% | 24% | 16% | 8% |
Main Reliefs
| Business Property & Agcultural Property | 2026/2027 |
| Business and Agricultural Property Relief (BPR/APR) Cap: Applies to 100% relief for qualifying business or agricultural assets per individual (or £5 million for couples). | £2.5 million |
| Reduced Relief for Excess for any qualifying assets above the £2.5 million cap. | 50% |
| AIM Shares: Shares traded on the Alternative Investment Market (AIM). | 50% |
Any unused amount of the £2.5 million allowance can be transferred to a surviving spouse or civil partner from 6 April 2026. If the first death was before 6 April 2026, it will be assumed the entirety of the £2.5 million allowance will be available for transfer to the surviving spouse or civil partner.
A £2.5 million allowance will also apply to the combined value of relievable agricultural and business property in trusts.
Stamp Duty Land Tax(SDLT) – Residential Property from 1 April 2025
| Property Value | Rate (on portion of value above threshold) | Rate (on portion of value above threshold) if purchase is of an additional residential property | Rate (on portion of value above threshold) if purchase is of residential property by certain non-UK residents | Rate (on portion of value above threshold) if purchase is of an additional residential property and by a certain non-UK resident |
| 0 to £125,000 | 0% | 5% | 2% | 7% |
| £125,001 to £250,000 | 2% | 7% | 4% | 9% |
| £250,001 to £925,000 | 5% | 10% | 7% | 12% |
| £925,001 to £1.5 million | 10% | 15% | 12% | 17% |
| Over £1.5 million | 12% | 17% | 14% | 19% |
Stamp Duty Land Tax — rates for first-time buyers purchasing properties worth £500,000 or less from 1 April 2025
| Property value | From 01/04/25 | |
| Property £0 to £300,000 | 0% | |
| £300,001 to £500,000 | 5% |
Stamp Duty Land Tax – residential leases from 1 April 2025
| Net Present value (NPV) of the rent | Rate on portion of value above threshold |
| 0 to £125,000 | 0% |
| Over £125,000 | 1% |
Stamp Duty Land Tax — higher rate for certain corporate transactions involving dwellings worth more than £500,000 from 31 October 2024
| Property value | Rate on whole of purchase price |
| Over £500,000 | 17% |
Stamp Duty Land Tax — non-residential property on or after 17 March 2016 - Purchase and Premium Transactions
| Property value | Rate (on portion of value above threhold) |
| £0 to £150,000 | 0% |
| £150,001 to £250,000 | 2% |
| £250,001 and over | 5% |
Stamp Duty Land Tax — non-residential leases on or after 17 March 2016
| Net Present Value (NPV) of the lease | Rate (on portion of value above threhold) |
| £0 to £150,000 | 0% |
| £150,001 to £5,million | 1% |
| Over £5 million | 2% |
Annual tax on Enveloped Dwellings
The ATED charges increase automatically each year in line with inflation (based on the previous September’s Consumer Price Index (CPI)).
The ATED annual charges will rise by 3.8% from 1 April 2026 in line with the September 2025 CPI.
The table shows the charges for the 2025 to 2026 period and what the uplifted charges will be for the 2026 to 2027 period.
| Property Value | Charge for tax year 2026 to 2027 | Charge for tax year 2025 to 2026 |
| More than £500,000 but not more than £1 million | £4,600 | £4,450 |
| More than £1 million but not more than £2 million | £9,450 | £9,150 |
| More than £2 million but not more than £5 million | £32,200 | £31,050 |
| More than £5 million but not more than £10 million | £75,450 | £72,700 |
| More than £10 million but not more than £20 million | £151,450 | £145,950 |
| More than £20 million+ | £303,450 | £292,350 |
Main Exemptions
- Most transfers between spouses and civil partners.
- The first £3,000 of lifetime transfers in any tax year plus any unused balance from previous year.
- Gifts of up to but not exceeding £250 p.a. to any number of persons.
- Gifts in consideration of marriage or civil partnership of: up to £5,000 by a parent, up to £2,500 by a grandparent, or up to £1,000 by any other person.
- Gifts made out of income that form part of normal expenditure and do not reduce the standard of living.
- Gifts to charities, whether made during lifetime or on death.
- From April 2012, a reduced rate of IHT of 36% will be introduced where 10 per cent of more of the net estate is left to charity.
| April 2026 | |
| 5 | Last day of 2025/26 tax year. Deadline for 2025/26 ISAs. Last day to make disposals using the 2025/26 CGT exemption. |
| 14 | Due date for income tax for the CT61 period to 31 March 2026. |
| 19/22 | Quarter 4 2025/26 PAYE remittance due. |
| 20 | Interest will begin to accrue on unpaid PAYE/NI for 2025/26. |
| 30 | Normal annual adjustment for VAT partial exemption calculations (monthly returns). |
| May 2026 | |
| 1 | Start of daily penalties for 2025 online Tax Return not yet filed. Additional penalties may apply for further delay. |
| 3 | Quarterly submission date of P46 (Car) for quarter to 5 April. |
| 31 | Last day to issue 2025/26 P60s to employees. |
| June 2026 | |
| 30 | End of CT61 quarterly period. |
| July 2026 | |
| 6 | Deadline for submission of Form 42 (transactions in shares and securities). File P11Ds, P11D(b)s and P9Ds. Issue copies of P11Ds to employees. |
| 14 | Due date for income tax for the CT61 period to 30 June 2026. |
| 19/20 | Quarter 1 2026/27 PAYE remittance due. Final date for payment of 2025/26 Class 1A NICs. |
| 31 | Second self assessment payment on account for 2025/26. |
| August 2026 | |
| 2 | Quarterly submission date of P46 (Car) for quarter to 5 July. |
| September 2026 | |
| 30 | End of CT61 quarterly period. |
| October 2026 | |
| 1 | Due date for payment of Corporation Tax for period ended 31 December 2025. |
| 5 | Individuals/trustees must notify HMRC of new sources of income/chargeability in 2025/26 if a Tax Return has not been received. |
| 14 | Due date for income tax for the CT61 quarter to 30 September 2026. |
| 19/22 | Quarter 2 2026/2027 PAYE remittance due. |
| 31 | Last day to file 2026 paper Tax Return. |
| November 2026 | |
| 1 | £100 penalty if 2025 paper Tax Return not yet filed. Additional penalties may apply for further delay. |
| 2 | Quarterly submission date of P46 (Car) for quarter to 5 October. |
| December 2026 | |
| 30 | Last day for online submission of 2026 Tax Return for HMRC to collect tax through clients’ PAYE code. |
| 31 | Last day for non-EC traders to reclaim recoverable UK VAT suffered in the year to 30 June 2026. End of CT61 quarterly period. Filing date for Corporation Tax Return Form CT600 for period ended 31 December 2025. |
| January 2027 | |
| 1 | Due date for payment of Corporation Tax for period ended 31 March 2026. |
| 14 | Due date for income tax for the CT61 quarter to 31 December 2026. |
| 18/22 | Quarter 3 2026/27 PAYE remittance due. |
| 31 | Capital gains tax payment for 2025/26. Balancing payment - 2025/26 income tax/Class 4 NICs. Last day to file the 2026 Tax Return online. |
| February 2027 | |
| 1 | £100 penalty if 2026 Tax Return not yet filed. Additional penalties may apply for further delay. Interest starts to accrue on 2024/25 tax not yet paid. |
| 2 | Quarterly submission date of P46 (Car) for quarter to 5 January. |
| March 2027 | |
| 2 | Last day to pay any balance of 2025/26 tax and Class 4 NICs to avoid an automatic 5% surcharge. |
| 31 | End of Corporation Tax financial year. End of CT61 quarterly period. Filing date for Corporation Tax Return Form CT600 for period ended 31 March 2026. |