Tax Rates and Allowances
| 2024-25 (£) | 2025-26 (£) | Increase (£) | |
|---|---|---|---|
| INCOME TAX ALLOWANCES: | |||
| Personal allowance | 12,570 | 12,570 | - |
| CAPITAL GAINS TAX ANNUAL EXEMPT AMOUNT: | |||
| Individuals etc: | 3,000 | 3,000 | - |
| Inheritance tax threshold | 325,000 | 325,000 | - |
| PENSIONS SCHEMES: | |||
| Annual allowance: | £60,000 | £60,000 | - |
| Lifetime allowance: | Abolished | Abolished | N/A |
Taxable Bands
| Taxable bands 2024-25 (£) | Taxable bands 2025-26 (£) | ||
|---|---|---|---|
| Starting rate 0% | 0 - 5,000 | Starting rate 0% | 0 - 5,000 |
| Basic rate 20% | 0 - 37,700 | Basic rate 20% | 0 - 37,700 |
| Higher rate 40% | 37,701 - 125,140 | Higher rate 40% | 37,701 - 125,140 |
| Additional rate 45% | Over 125,141 | Additional rate 45% | Over 125,141 |
Corporation Tax Rates
| Band | Corporation tax profits 2024-25 (£) | Corporation tax profits 2025-26 (£) |
|---|---|---|
| 0 - 50,000 | 19% | 19% |
| 50,001 - 250,000 | Marginal relief | Marginal relief |
| 250,001 or more | 25% | 25% |
National Insurance Rates
| 2024-25 | 2025-26 | |
|---|---|---|
| Primary threshold | £242 per week | £242 per week |
| Secondary threshold | £175 per week | £96 per week |
| Employees' primary class 1 rate on earnings between primary threshold and upper earnings limit | 8% of £242.01 to £967 per week 2% above £967 per week | 8% of £242.01 to £967 per week 2% above £967 per week |
| Employers' secondary Class 1 rate | 13.8% on earnings above £175 per week | 15% on earnings above £96 per week |
| Employment allowance | £5,000 | £10,500 |
Dividend Tax Rates
| 2024-25 | 2025-26 | |
|---|---|---|
| Dividend allowance | £500 | £500 |
| Basic rate | 8.75% | 8.75% |
| Higher rate | 33.75% | 33.75% |
| Additional rate | 39.35% | 39.35% |
For further rates and allowances and historic tables see HMRC.