|
Inheritance Tax |
2025-26 |
2024-25 |
|
Nil rate band for individuals* |
£325,000 |
£325,000 |
|
Thereafter – lifetime |
20% |
20% |
|
– lower rate on death*** |
36% |
36% |
|
– on death |
40% |
40% |
|
Residence nil rate band**** |
£175,000 |
£175,000 |
* Unused
nil rate band can be used by surviving spouse or civil partner. This is
currently frozen until April 2028.
**
Increased to 40%, subject to tapering relief, on gifts made between 3 and 7
years pre death. Certain lifetime gifts are exempt. Special rules for business
property.
*** A lower rate
applies where 10% or more of the net estate is left to charity.
**** The
inheritance tax main residence nil-rate band (MRNRB) was introduced in April
2017. The MRNRB allows for a £175,000 per person transferable allowance for
married couples and civil partners when their main residence is passed down to
children after their death. The MRNRB is in addition to the existing £325,000
inheritance tax threshold.
Net estates over
£2,000,000 have RNRB reduced by £1 for every £2 and lost when estate is
£2,350,000.
|
Years before death |
0-3 |
3-4 |
4-5 |
5-6 |
6-7 |
|
% of death charge |
100% |
80% |
60% |
40% |
20% |
|
Recurring annual gifts out of surplus income |
|
|
Annual gifts out |
£3,000 |
|
Small gifts (per recipient) |
£250 |
|
Parental gift on |
£5,000 |
|
Grandparent or party to marriage |
£2,500 |
|
Other gifts on |
£1,000 |
Business Property Relief
|
Shares in unquoted |
100% |
|
– shareholding up |
none |
|
– shareholding over 50% |
50% |
|
Unincorporated |
100% |
|
Land, buildings, plant and machinery used in the |
50% |
National Insurance £ Rates and Allowances
|
2025-26 |
2024-25 |
|
|
Lower weekly |
£125 |
£123 |
|
Upper weekly earnings limit (primary Class 1) |
£967 |
£967 |
|
Primary weekly |
£242 |
£242 |
|
Secondary weekly earnings threshold |
£96 |
£175 |
|
Employees’ primary Class 1 rate (between |
8.00 % |
8.00 % |
|
Employees’ primary Class 1 rate (above upper limit) |
2.00 % |
2.00 % |
|
Married women’s reduced rate (between thresholds) |
1.85 % |
1.85 % |
|
Married women’s rate (above upper limit) |
2.00 % |
2.00 % |
|
Employers’ secondary Class 1 rate (above secondary |
15.00 % |
13.80 % |
|
Class 2 weekly rate – self-employed |
£3.50 |
£3.45 |
|
Class 2 small profits threshold |
£6,845 per year |
£6,725 per year |
|
Special Class 2 weekly rate – fishermen |
£4.15 |
£4.10 |
|
Special Class 2 weekly rate – volunteer development |
£6.25 |
£6.15 |
|
Class 3 voluntary weekly rate |
£17.75 |
£17.45 |
|
Class 4 lower profits limit |
£12,570 per year |
£12,570 per year |
|
Class 4 upper profits limit |
£50,270 per year |
£50,270 per year |
|
Class 4 rate (between limits) |
6.00 % |
6.00 % |
|
Class 4 rate (above upper limit) |
2.00 % |
2.00 % |
- The Class 2 National Insurance has
not been abolished; it remains payable at £3.50 per week for
2025-26 where profits exceed £6,845. Those below the threshold may
pay voluntarily to protect State Pension entitlement. - Employment Allowance
remains £5,000 for qualifying employers. - No employer£s contributions are due on
earnings up to £967 per week paid to employees under 21 or
qualifying apprentices under 25. - Employee main rate
stays at 8 %, continuing the cut introduced in 2024. - Employer secondary rate
rises to 15 % from April 2025.
Capital Gains Tax: Individuals and Trustees
|
2025-26 |
2024-25 |
|
|
Annual |
£3,000 |
£3,000 |
|
Annual |
£1,500 |
£1,500 |
|
Standard |
18% |
18% |
|
Higher |
24%) |
24% |
|
Limit |
£1,000,000 |
£1,000,000 |
|
Business |
14% |
10% |
|
Investors’ |
£1,000,000 |
£1,000,000 |
|
Investors’ |
14% |
10% |
-
- For disposals on or after 6 April 2025, the
main CGT rates for individuals (excluding carried-interest gains) are 18%
(lower rate) and 24% (higher rate).
- For disposals on or after 6 April 2025, the
-
- The allowance (Annual Exempt Amount) for
individuals is £3,000 for 2025-26.
- The allowance (Annual Exempt Amount) for
-
- The reduced rate for Business Asset Disposal
Relief rises from 10% to 14% from 6 April 2025.
- The reduced rate for Business Asset Disposal
-
- carried interest gains, the rate is 32%
for individuals from 6 April 2025.
- carried interest gains, the rate is 32%
-
- The rates you originally showed (e.g., standard 10%
and 20%) apply to earlier periods and not fully for 2025-26.
- The rates you originally showed (e.g., standard 10%
- Trustee rate (trusts) is shown as 24% from 6 April
2025 for most gains.
|
2025-26 |
2024-25 |
|
|
Basic element £ |
Final year of awards £ no new claims from |
£2,435 |
|
Childcare element (70% of eligible costs up to) |
Final year of awards £ |
Up to £175/week for one |
|
Child element per child £ maximum (Child Tax |
Final year of awards £ |
£3,455 |
|
Family element |
Final year of awards £ |
£545 |
|
Threshold for CTC only claim (income) |
Final year of awards £ |
£19,995 p.a. |
|
Universal Credit |
2025-26 |
2024-25 |
|
Claimable Percentage |
85% of eligible costs |
n/a |
|
Maximum for One Child |
£1,031.88 |
n/a |
|
Maximum for Two or More |
£1,768.94 |
n/a |
|
The |
||
|
Pension Contributions* |
2025-26 |
2024-25 |
|
Maximum annual |
£60,000 |
£60,000 |
|
Tax on excess |
Marginal rate |
Marginal rate |
|
Normal minimum pension |
55 |
55 |
|
|
||
|
Old State pension £ per |
2025-26 |
2024-25 |
|
Single person |
£176.45 |
£169.50 |
|
|
||
|
2025-26 |
2024-25 |
|
|
Single person |
£230.25 |
£221.20 |
* Tapered Annual Allowance: income threshold
£200,000 and adjusted income threshold £260,000, reducing the allowance down to
a minimum of £10,000 for higher earners.
Income Tax
|
Bands |
2025-26 |
2024-25 |
|
Savings starting rate £ 0%* |
£0 £ £5,000 |
£0 £ £5,000 |
|
Basic rate 20%** |
£12,571 – |
£12,571 – |
|
Higher rate 40% |
£50,271 – £125,140 |
£50,271 – £125,140 |
|
Additional rate 45% |
Over |
Over |
|
|
||
|
Scottish rates |
2025-26 |
2024-25 |
|
Starter rate 19% on taxable income |
£12,571 – £15,397 |
£12,571 £ £14,876 |
|
Basic rate 20% |
£15,398 – |
£12,571 – |
|
Intermediate rate – 21% |
£27,492 – £43,662 |
£6,562 £ £43,662 |
|
Higher rate – 42% |
£43,663 – £75,000 |
£43,663 – £75,000 |
|
Advanced -45% |
£75,001 – £125,140 |
£75,001 – £125,140 |
|
Top rate – 48% |
Above |
Above |
|
2025-26 |
2024-25 |
|
|
Dividend |
£500 |
£500 |
|
Dividend ordinary rate |
8.75% |
8.75% |
|
Dividend upper rate |
33.75% |
33.75% |
|
Dividend additional rate |
39.35% |
39.35% |
|
Personal savings allowance |
2025-26 |
2024-25 |
|
– basic rate |
£1,000 |
£1,000 |
|
– higher rate taxpayers |
£500 |
£500 |
|
Reliefs |
2025-26 |
2024-25 |
|
Personal allowance |
£12,570 |
£12,570 |
|
Registered blind person£s allowance |
£3,130 |
£3,070 |
|
Income limit for |
£100,000 |
£100,000 |
* The personal allowance is gradually withdrawn by
£1 for every £2 of income over £100,000.
|
Married couple allowance £ tax relief given at |
2025-26 |
2024-25 |
|
– Born before 6 April 1935 |
£11,270 |
£11,080 |
|
– Minimum amount* |
£4,360 |
£4,280 |
|
– Income limit |
£37,700 |
£37,000 |
|
– Marriage |
£1,260 |
£1,260 |
* Since 2021/22 a taxpayer can transfer up to £1260
of their unused personal allowance to a spouse or civil partner who is not a
higher rate taxpayer.
|
High Income Child Benefit Charge* |
2025-26 |
2024-25 |
|
on income over |
£60,000 |
£60,000 |
* From 6 April 2024, the tax charge is levied at
the rate of 1% of the full child benefit award for each £100 that income
exceeds £60,000, up to a maximum of 100% of the child benefit claimed. The
child benefit is withdrawn in full once an individual£s income exceeds £80,000.
Taxpayers can choose whether to continue receiving
child benefit and pay the tax charge or may opt out of receiving the child
benefit.
Stamp Duty and Annual Tax on Enveloped Dwellings
Stamp Duty on shares (SDRT): 0.5% on purchases of
UK shares.
Annual Tax on Enveloped Dwellings (ATED): Payable
by certain non‑natural persons owning UK residential properties valued
over £500,000. Charges start at £4,450 for properties up to £1 million and
increase in bands for higher‑value properties.
England &
Northern Ireland £ Stamp Duty Land Tax (SDLT) £ Standard Residential Property.
|
Purchase price (portion) |
Rate |
|
£0 – £125,000 |
0% |
|
£125,001 – £250,000 |
2% |
|
£250,001 – £925,000 |
5% |
|
£925,001 – £1,500,000 |
10% |
|
Over £1,500,000 |
12% |
Additional
notes:
- A 17% flat rate applies for certain non‑natural
persons (corporate bodies) acquiring residential property costing over
£500,000 from 31 October 2024. GOV.UK - A surcharge for additional residential
properties (buy‑to‑let, second homes) applies on top of these
rates. GOV.UK+1
SDLT on non-residential and mixed-use properties.
|
Rate |
Non-Residential |
|
Zero |
£0 £ |
|
2% |
£150,001 £ |
|
5% |
Over |
These rates
are applied on a graduated basis with the portion of the purchase price within
each tier charged at the applicable rate.
15% is
applied to residential properties held in a £corporate envelope£ costing over
£500,000.
There is a
higher rate of SDLT that applies to purchases of additional residential
property such as buy to let and second homes. The rate is 3% higher than the
current SDLT rates and applies to the purchase of additional residential
properties valued at £40,000 and above.
Scotland £ Land & Buildings Transaction Tax (LBTT) £ Residential
Property.
|
Purchase price (portion) |
Rate |
|
£0 – £145,000 |
0% |
|
£145,001 – £250,000 |
2% |
|
£250,001 – £325,000 |
5% |
|
£325,001 – £750,000 |
10% |
|
Over £750,000 |
12% |
Additional
notes:
- First‑time buyers may get relief (nil‑rate
band rises to £175,000). RE/MAX Scotland - An Additional Dwelling Supplement (ADS) may
apply. Scottish Government+1
Non-Residential and mixed-use properties.
|
Rate |
Non-Residential |
|
Zero |
£0 £ |
|
1% |
£150,001 £ |
|
5% |
Over |
Wales – Land Transaction Tax (LTT) £ Residential Property
|
Purchase price (portion) |
Rate |
|
£0 – |
0% |
|
£225,001 |
6% |
|
£400,001 |
7.5% |
|
£750,001 |
10% |
|
Over |
12% |
Additional
notes:
- Higher rates apply for additional residential
properties or second homes.
Non-Residential and mixed-use properties.
|
Rate |
Non-Residential |
|
Zero |
£0 £ |
|
1% |
£225,001 £ |
|
5% |
£250,001 £ |
|
6% |
Over |
These rates
are applied on a graduated basis with the portion of the purchase price within
each tier charged at the applicable rate.
The National Minimum Wage and Living Wage
|
2025-26 |
2024-25 |
|
|
National Living Wage |
£12.21 p.h. |
£11.44 p.h. |
|
National Minimum Wage Aged 18 to 20 |
£10.00 p.h. |
£8.60 p.h. |
|
Aged 16 and 17 |
£7.55 p.h. |
£6.40 p.h. |
|
Apprentice rate |
£7.55 p.h. |
£6.40 p.h. |
VAT
|
Rates and Limits |
2025-26 |
2024-25 |
|
Standard rate |
20% |
20% |
|
Reduced rate |
5% |
5% |
|
Zero rate |
0% |
0% |
|
Annual registration |
£90,000 |
£90,000 |
|
Annual deregistration |
£88,000 |
£88,000 |
|
VAT Cash accounting |
£1,350,000 |
£1,350,000 |
|
VAT Annual accounting |
£1,350,000 |
£1,350,000 |
Corporation Tax
|
2025-26 |
2024-25 |
|
|
Small profits rate (0 – 50,000) |
19% |
19% |
|
Marginal rate (50,001 – 250,000) |
26.5% |
26.5% |
|
Main rate (Over 250,000) |
25% |
25% |
Marginal relief fraction (3/200)
Corporation tax rates are set for each Financial
Year. A Financial Year runs from 1 April to the following 31 March.
If the accounting period of a company straddles the
31 March, the profits are apportioned on a time basis to each Financial Year.
For the year to 31.3.24 the profits limits are
reduced for a company with associated companies. Different rates apply for
ring-fenced (broadly oil industry) profit.
Tax – Car, Van and Fuel Benefits
|
Company Car Tax BIK Rates |
||||
|
CO₂ emissions |
Electric range |
2025/26 BIK |
2024/25 (%) |
Notes |
|
0 |
N/A |
3% |
2% |
Fully electric |
|
1-50 |
>130 |
3% |
2% |
Plug-in hybrid, long |
|
1-50 |
70£129 |
6% |
5% |
Plug-in hybrid |
|
1-50 |
40£69 |
9% |
8% |
Plug-in hybrid |
|
1-50 |
30£39 |
13% |
12% |
Plug-in hybrid |
|
1-50 |
<30 |
15% |
14% |
Plug-in hybrid |
|
51-54 |
– |
16% |
15% |
Petrol or diesel |
|
55-59 |
– |
17% |
16% |
– |
|
60-64 |
– |
18% |
17% |
– |
|
65-69 |
– |
19% |
18% |
– |
|
70-74 |
– |
20% |
19% |
– |
|
75-79 |
– |
21% |
20% |
– |
|
80-84 |
– |
22% |
21% |
– |
|
85-89 |
– |
23% |
22% |
– |
|
90-94 |
– |
24% |
23% |
– |
|
95-99 |
– |
25% |
24% |
– |
|
100-104 |
– |
26% |
25% |
– |
|
105-109 |
– |
27% |
26% |
– |
|
110-114 |
– |
28% |
27% |
– |
|
115-119 |
– |
29% |
28% |
– |
|
120-124 |
– |
30% |
29% |
– |
|
125-129 |
– |
31% |
30% |
– |
|
130-134 |
– |
32% |
31% |
– |
|
135-139 |
– |
33% |
32% |
– |
|
140-144 |
– |
34% |
33% |
– |
|
145-149 |
– |
35% |
34% |
– |
|
150-154 |
– |
36% |
35% |
– |
|
155-159 |
– |
37% |
36% |
Max BIK |
|
160+ |
– |
37% |
37% |
Max BIK |
RDE2 compliant) add +4%, capped at 37%.
from the diesel uplift.
value) and is added to the employee£s taxable income.
Mileage Allowance Payments
|
Cars & vans |
Rate per |
|
– up to 10,000 miles |
45p |
|
– over 10,000 miles |
25p |
|
Motorcycles |
24p |
|
Bicycles |
20p |
These rates
represent the maximum tax free mileage allowances for
employees using their own vehicles for business. Any excess is taxable. If the
employee receives less than the statutory rate, tax relief can be claimed on
the difference.
Capital Allowances
|
2025-26 |
2024-25 |
|
|
£ Main writing down allowance |
18% |
18% |
|
£ Long life assets, integral fixtures |
6% |
6% |
|
£ First year allowances (certain environmentally |
100% FYA Or 50% FYA for |
100% FYA Or 50% FYA for |
The Annual investment Allowance of £1,000,000
continues.
|
Cars |
2025-26 |
2024-25 |
|
-CO2 emissions |
||
|
0 g/km or below |
100% FYA |
100% FYA |
|
1 – 50 g/km |
18% WDA – |
18% WDA – |
|
Above 50 |
6% WDA – |
6% WDA – |
Tax Favoured Investments
|
Investment type |
Annual limit |
Income tax relief |
Notes |
|
Adult ISA |
£20,000 |
Tax‑free growth (income + |
Includes LISA/JISA allowances. |
|
Lifetime ISA (LISA) |
£4,000 |
25% |
Age |
|
Junior ISA (JISA) |
£9,000 |
Tax‑free growth for children |
|
|
VCT |
£200,000 per year |
30% |
Dividends |
|
EIS |
£1,000,000 (or up to £2,000,000 |
30% relief on investment |
CGT deferral, etc. |
|
SEIS |
£200,000 per year |
50% |
Very |