Income Tax — Personal Allowances & Reliefs
| 26/27 | 25/26 |
|---|
| Personal allowance* | £12,570 | £12,570 |
| Marriage/civil partners' transferable allowance | £1,260 | £1,260 |
| Blind person's allowance | TBA | £3,130 |
| Rent-a-room relief | £7,500 | £7,500 |
| Property & trading allowance (each) | £1,000 | £1,000 |
*Reduced by £1 for every £2 of adjusted net income over £100,000
Income Tax — UK Rates (excl. Scotland)
| Rate | | 26/27 | 25/26 |
|---|
| 20% basic | Up to | £37,700 | £37,700 |
| 40% higher | Over | £37,700 | £37,700 |
| 45% additional | Over | £125,140 | £125,140 |
Income Tax — Scottish Rates
| Rate | | 26/27 | 25/26 |
|---|
| 19% starter | Up to | TBA | £2,827 |
| 20% basic | Up to | TBA | £14,921 |
| 21% intermediate | Up to | TBA | £31,092 |
| 42% higher | Up to | TBA | £62,430 |
| 45% advanced | Up to | TBA | £125,140 |
| 48% top | Over | TBA | £125,140 |
Scottish Budget published 13 January 2026 — 26/27 bands TBA
Savings, Dividends & Trusts — All UK
| 26/27 | 25/26 |
|---|
| Starting rate (0%) band — savings | £5,000 | £5,000 |
| Personal savings allowance — basic rate | £1,000 | £1,000 |
| Personal savings allowance — higher rate | £500 | £500 |
| Personal savings allowance — additional rate | £0 | £0 |
| Dividend allowance (0%) | £500 | £500 |
| Dividend tax rates |
| Basic rate | 10.75% | 8.75% |
| Higher rate | 35.75% | 33.75% |
| Additional rate | 39.35% | 39.35% |
| Trusts |
| Income exemption | £500 | £500 |
| Rate on dividends | 39.35% | 39.35% |
| Rate on other income | 45% | 45% |
High Income Child Benefit Charge: 1% of benefit per £200 of adjusted net income between £60,000 and £80,000
National Insurance Contributions
| | Employee | Employer |
|---|
| Class 1 |
| NICs rate | On earnings £242–£967 pw | 8% | 15% |
| NICs rate | Over £967 pw | 2% | — |
| Lower earnings limit | No NICs employee | £242 pw | — |
| Secondary threshold | No NICs employer | — | £96 pw |
| Employment allowance | Per business | £10,500 |
| Class 1A — Employer (benefits in kind) |
| Taxable benefits | | 15% |
| Class 2 & 4 — Self-employed |
| Class 2 (voluntary) | Flat rate pw | £3.65 (£189.80 pa) |
| Small profits threshold | | £7,105 |
| Class 4 | £12,570–£50,270 | 6% |
| Class 4 | Over £50,270 | 2% |
| Class 3 voluntary | Per week | £18.40 (£956.80 pa) |
State Pensions
| Annual | Weekly |
|---|
| New state pension | TBA | £241.30 pw |
| Basic — single person* | TBA | £184.90 pw |
| Basic — spouse/civil partner* | TBA | £110.75 pw |
*State pension age reached before 6/4/16
Registered Pensions
| 26/27 | 25/26 |
|---|
| Annual allowance* | £60,000 | £60,000 |
| Money purchase annual allowance | £10,000 | £10,000 |
| Lump sum allowance | £268,275 | £268,275 |
| Lump sum & death benefit allowance | £1,073,100 | £1,073,100 |
*Reduced by £1 for every £2 of adjusted income over £260,000 to minimum £10,000 (threshold income over £200,000)
Car & Van Benefits
| Car benefit — CO2 emissions | % list price |
|---|
| Zero emission | 4% |
| Hybrid 1–50g/km — electric-only mile range |
| Under 30 miles | 16% |
| 30–39 miles | 14% |
| 40–69 miles | 10% |
| 70–129 miles | 7% |
| 130+ miles | 4% |
| Non-diesel over 50g/km |
| 51–54g/km | 17% |
| 55g/km and over | 18%–37%* |
| Vans — private use |
| Zero emission van | Nil |
| Other vans | TBA |
| Van fuel benefit | TBA |
*Increased 1% per 5g/km to max 37% · Diesels not meeting RDE2: add 4%, up to 37%
Tax-Free Mileage Allowance — Own Vehicle
| Vehicle | Rate |
|---|
| Cars & vans — first 10,000 miles | 45p per mile |
| Cars & vans — over 10,000 miles | 25p per mile |
| Motorcycles | 24p per mile |
| Bicycles | 20p per mile |
| Qualifying passenger | 5p per mile |
Capital Gains Tax
| 26/27 | 25/26 |
|---|
| Annual exemption — individuals | £3,000 | £3,000 |
| Annual exemption — trusts | £1,500 | £1,500 |
| Tax rates |
| Below higher rate band | 18% | 18% |
| Higher/additional rate bands | 24% | 24% |
| Trusts and estates | 24% | 24% |
| Carried interest | N/A | 32% |
| Business Asset Disposal Relief |
| BADR rate | 18% | 14% |
| Lifetime limit | £1,000,000 | £1,000,000 |
Min. 5% participation in trading businesses held for at least 2 years
Inheritance Tax
| Amount |
|---|
| Nil-rate band* | £325,000 |
| Residence nil-rate band*† | £175,000 |
| Rate on excess | 40% |
| With 10%+ to charity | 36% |
| Lifetime transfers (trusts) | 20% |
| Non-LTR spouse exempt | £325,000 |
| Business Relief 26/27 |
| Businesses/unlisted (up to £1m) | 100% |
| Businesses/unlisted (over £1m) | 50% |
| AIM shares | 50% |
| Exempt gifts |
| Per donor annually | £3,000 |
| Per donee | £250 |
*Unused proportion transferable to surviving spouse/civil partner · †Reduced for estates over £2,000,000
Corporation Tax
| Profits | Rate | Diverted |
|---|
| £0 – £50,000 | 19% | — |
| £50,001 – £250,000 | 26.5% | 31% |
| Over £250,000 | 25% | — |
| Loans to participators | 33.75% | — |
Tax Incentivised Investments
| 26/27 | 25/26 |
|---|
| ISA (excl. JISA) | £20,000 | £20,000 |
| Lifetime ISA | £4,000 | £4,000 |
| JISA / Child Trust Fund | £9,000 | £9,000 |
| VCT relief | 20% | 30% |
| EIS at 30% — limit | £2,000,000 | £2,000,000 |
| SEIS at 50% — limit | £200,000 | £200,000 |
| SEIS CGT reinvestment | 50% | 50% |
VAT
| Rate/Limit |
|---|
| Standard rate | 20% |
| Domestic fuel | 5% |
| Energy saving materials | 0% |
| Registration threshold | £90,000 |
| Deregistration threshold | £88,000 |
| Flat rate scheme limit | £150,000 |
| Cash/annual accounting limit | £1,350,000 |
Capital Allowances
| Rate |
|---|
| Annual investment allowance | £1,000,000 |
| Full expensing — companies | 100% |
| Special rate P&M — companies | 50% |
| P&M all businesses from Jan 2026 | 40% |
| P&M (reducing balance) | 18% pa |
| Patent rights and know-how | 25% pa |
| Special rate P&M (long-life, integral features) | 6% pa |
| Structures & buildings (straight line) | 3% pa |
| 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% |
SDLT — England & N Ireland
| Residential | % | Commercial | % |
|---|
| 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 (props up to £500,000) · Additional/corporate residential: +5% · Non-resident: +2% surcharge
LBTT — Scotland
| Residential | % | Commercial | % |
|---|
| 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 first £175,000 · Additional residential: +8%
LTT — Wales
| Residential | % | Commercial | % |
|---|
| 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% | | |
Additional residential: +5% · Stamp Duty on stocks & securities: 0.5%
Key Tax Payment Dates
| Tax | Due Date | Detail |
|---|
| Income Tax, NICs & CGT — Self Assessment |
| 1st payment on account | 31 January (in year) | 50% of previous year's income tax & Class 4 NICs |
| 2nd payment on account | 31 July | Balance of previous year less tax deducted at source |
| Balancing payment | 31 January (following year) | Balance of income tax, Class 4 NICs, CGT + voluntary Class 2 NICs |
| CGT — residential property | Within 60 days | Report and pay within 60 days of completion |
| Corporation Tax — Self Assessment |
| Profits under £1.5m | 9 months + 1 day | After end of accounting period |
| Profits £1.5m–£20m | Quarterly instalments | 7th, 10th, 13th and 16th months after period start |
| Profits over £20m | Quarterly instalments | 3rd, 6th, 9th and 12th months after period start |
| Inheritance Tax |
| On death | 6 months | After end of month of death |
| Lifetime transfer (Apr–Sep) | 30 April following year | |
| Lifetime transfer (Oct–Apr) | 6 months | After end of month of transfer |
Source: Bishop Fleming Tax Tables 2026/27 · © 26 November 2025 · For information only — always seek professional advice before acting
