Reduced by £1 for every £2 of adjusted net income over £100,000; nil at £125,140.
CLIENT REFERENCE / 2026
Tax Card
2026/27
With 2025/26 comparatives
A practical guide to UK tax rates, allowances, payroll thresholds and key deadlines.
01 / PERSONAL TAX
Income Tax, allowances,
dividends and savings.
UK-wide unless stated. Scottish rates apply to non-savings, non-dividend income of Scottish taxpayers.
Unchanged. Dividend ordinary and upper rates increase for 2026/27.
Basic-rate / higher-rate taxpayer. Nil for additional-rate taxpayers.
Transferable subject to eligibility; maximum tax reduction £252.
ENGLAND, WALES & NORTHERN IRELAND
Income Tax bands
Taxable income above the Personal Allowance
| Band | Rate | 2025/26 | 2026/27 |
|---|---|---|---|
| Basic | 20% | £1-£37,700 | £1-£37,700 |
| Higher | 40% | £37,701-£125,140 | £37,701-£125,140 |
| Additional | 45% | Over £125,140 | Over £125,140 |
SCOTTISH TAXPAYERS
Scottish Income Tax
Total income ranges shown assume the standard Personal Allowance
| Band | Rate | 2025/26 | 2026/27 |
|---|---|---|---|
| Starter | 19% | £12,571-£15,397 | £12,571-£16,537 |
| Basic | 20% | £15,398-£27,491 | £16,538-£29,526 |
| Intermediate | 21% | £27,492-£43,662 | £29,527-£43,662 |
| Higher | 42% | £43,663-£75,000 | £43,663-£75,000 |
| Advanced | 45% | £75,001-£125,140 | £75,001-£125,140 |
| Top | 48% | Over £125,140 | Over £125,140 |
Scottish bands apply to non-savings, non-dividend income. Savings and dividends use UK-wide rates. The Personal Allowance tapers above £100,000.
Rates above the £500 allowance
- Ordinary rate
8.75%10.75%- Upper rate
33.75%35.75%- Additional rate
- 39.35%
Starting rate and allowances
- Starting-rate limit
- £5,000
- Basic-rate PSA
- £1,000
- Higher-rate PSA
- £500
- Additional-rate PSA
- Nil
Child Benefit
Weekly rates are £27.05 for the eldest or only child and £17.90 for each additional child. The High Income Child Benefit Charge starts where the higher earner's adjusted net income exceeds £60,000 and reaches 100% at £80,000.
02 / EMPLOYMENT & PAYROLL
National Insurance,
pay and statutory rates.
Annual equivalents are shown for headline payroll thresholds; payroll calculations use the applicable pay-period threshold.
ANNUAL THRESHOLDS AND MAIN RATES
National Insurance
| Item | 2025/26 | 2026/27 |
|---|---|---|
| Employee primary threshold | £12,570 | £12,570 |
| Employee upper earnings limit | £50,270 | £50,270 |
| Employee Class 1 rate | 8% / 2% | 8% / 2% |
| Employer secondary threshold | £5,000 | £5,000 |
| Employer Class 1 / Class 1A / Class 1B | 15% | 15% |
| Employment Allowance | £10,500 | £10,500 |
| Self-employed Class 4 thresholds | £12,570 / £50,270 | £12,570 / £50,270 |
| Self-employed Class 4 rate | 6% / 2% | 6% / 2% |
| Voluntary Class 2 / Class 3 weekly | £3.50 / £17.75 | £3.65 / £18.40 |
Connected companies: only one company in a connected group may claim Employment Allowance. NIC thresholds are not divided by the number of associated companies.
Hourly rates
- Age 21 and over
- £12.71
- Age 18 to 20
- £10.85
- Under 18 / apprentice
- £8.00
- Accommodation offset
- £11.10/day
Weekly standard rates
- SMP / SPP / SAP / ShPP etc.
- £194.32
- Statutory Sick Pay
- Lower of £123.25 or 80% AWE
From 6 April 2026, SSP is payable from the first qualifying day and the Lower Earnings Limit restriction has been removed.
Annual repayment thresholds
- Plan 1
- £26,900
- Plan 2
- £29,385
- Plan 4
- £33,795
- Plan 5
- £25,000
- Postgraduate
- £21,000
03 / BUSINESS TAX
Corporation Tax, VAT
and digital records.
Company profit limits are divided by the number of associated companies and reduced for short accounting periods.
Financial year 2026
- Small profits rate
- 19%
- Main rate
- 25%
- Lower / upper limits
- £50,000 / £250,000
- Marginal relief fraction
- 3/200
Accounting periods straddling 1 April may require apportionment.
Rates and thresholds
- Standard / reduced / zero
- 20% / 5% / 0%
- Registration threshold
- £90,000
- Deregistration threshold
- £88,000
Monitor taxable turnover on a rolling 12-month basis and test large expected supplies under the 30-day rule.
PLANT AND MACHINERY
Capital allowances
2026/27 headline rates
| Allowance | 2025/26 | 2026/27 |
|---|---|---|
| Annual Investment Allowance | £1 million | £1 million |
| Main-pool writing-down allowance | 18% | 14% |
| Special-rate pool writing-down allowance | 6% | 6% |
| Full expensing - qualifying companies | 100% | 100% |
| Special-rate first-year allowance - qualifying companies | 50% | 50% |
| New main-rate first-year allowance | N/A | 40% |
| Structures and Buildings Allowance | 3% | 3% |
The main-pool rate changed on 1 April 2026 for Corporation Tax and 6 April 2026 for Income Tax; straddling periods use a hybrid rate. The permanent 40% first-year allowance applies to qualifying new and unused main-rate expenditure incurred from 1 January 2026, subject to exclusions.
MANDATORY FROM 6 APRIL 2026
Making Tax Digital for Income Tax
- Applies where combined gross qualifying self-employment and property income exceeded £50,000 in 2024/25.
- Requires compatible digital records and quarterly updates, followed by the annual tax return.
- The threshold reduces to over £30,000 from April 2027 and over £20,000 from April 2028.
- The standard quarterly deadlines are 7 August, 7 November, 7 February and 7 May.
2026/27 first-year treatment: HMRC will not apply penalty points for late quarterly updates, but all updates must be submitted before the tax return. Late Self Assessment filing and payment penalties continue to apply.
04 / CAPITAL TAXES
Capital Gains Tax
and Inheritance Tax.
Reliefs depend on the asset, ownership history, transaction and taxpayer circumstances.
RATES AND EXEMPT AMOUNTS
Capital Gains Tax
| Item | 2025/26 | 2026/27 |
|---|---|---|
| Annual exempt amount - individuals | £3,000 | £3,000 |
| Annual exempt amount - most trustees | £1,500 | £1,500 |
| Individual basic / higher rate | 18% / 24% | 18% / 24% |
| Residential property basic / higher rate | 18% / 24% | 18% / 24% |
| Trustees and personal representatives | 24% | 24% |
| Business Asset Disposal Relief | 14% | 18% |
| Investors' Relief | 14% | 18% |
| BADR / Investors' Relief lifetime limit | £1 million | £1 million |
UK residential property gains generally require an online return and payment within 60 days of completion. Non-residents can have reporting obligations even where no tax is due.
Core rates and thresholds
- Nil-rate band
- £325,000
- Residence nil-rate band
- £175,000
- RNRB taper starts
- £2 million
- Estate / charity reduced rate
- 40% / 36%
- Chargeable lifetime transfers
- 20%
Agricultural & Business Relief
£2.5mCombined 100% relief allowance for qualifying agricultural and business property.
- Qualifying value above allowance
- 50% relief
- Maximum effective IHT rate
- 20%
- Transferable between spouses / civil partners
- Up to £5m combined
Ten-year interest-free instalments may be available. Trusts, lifetime transfers, quoted status and the asset category can materially change the result.
05 / SAVINGS, PENSIONS & BENEFITS
Contribution limits,
vehicles and business travel.
Tax relief and benefit calculations depend on the individual, the arrangement and the underlying asset.
ANNUAL LIMITS
Pensions and tax-free savings
| Limit | 2025/26 | 2026/27 |
|---|---|---|
| Pension annual allowance | £60,000 | £60,000 |
| Threshold / adjusted income for taper | £200,000 / £260,000 | £200,000 / £260,000 |
| Minimum tapered annual allowance | £10,000 | £10,000 |
| Money Purchase Annual Allowance | £10,000 | £10,000 |
| Lump Sum Allowance | £268,275 | £268,275 |
| Lump Sum and Death Benefit Allowance | £1,073,100 | £1,073,100 |
| ISA / Junior ISA subscription | £20,000 / £9,000 | £20,000 / £9,000 |
Personal pension contribution relief is normally limited to relevant UK earnings, subject to a £3,600 gross minimum basis for eligible non-earners. The annual allowance, taper, MPAA and carry-forward rules require separate testing.
Taxable benefit values
- Zero-emission company car
- 4%
- Van benefit charge
- £4,170
- Van fuel benefit charge
- £798
- Car fuel benefit multiplier
- £29,200
Employee-owned vehicles
- Car / van - first 10,000 miles
- 55p
- Car / van - thereafter
- 25p
- Motorcycle / bicycle
- 24p / 20p
- Qualifying passenger
- 5p
The 55p rate applies retrospectively from 6 April 2026.
2026/27 thresholds
- Earnings trigger
- £10,000
- Qualifying earnings band
- £6,240-£50,270
- Statutory minimum
- 8% total / 3% employer
06 / PROPERTY & DEADLINES
Stamp Duty Land Tax
and dates clients miss.
SDLT applies in England and Northern Ireland. Scotland uses LBTT and Wales uses LTT.
RATES ON EACH SLICE
Residential SDLT from 1 April 2025
| Purchase price slice | Standard | Additional dwelling |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,001-£250,000 | 2% | 7% |
| £250,001-£925,000 | 5% | 10% |
| £925,001-£1.5 million | 10% | 15% |
| Over £1.5 million | 12% | 17% |
A further 2 percentage-point non-resident surcharge may apply. First-time buyer relief is 0% to £300,000 and 5% on £300,001-£500,000, provided the total price does not exceed £500,000.
Purchase price slices
- Up to £150,000
- 0%
- £150,001-£250,000
- 2%
- Over £250,000
- 5%
Key filing and payment dates
- 5 October 2026Normally notify HMRC of chargeability for 2025/26.
- 31 October 20262025/26 paper Self Assessment return.
- 31 January 20272025/26 online return, balancing payment and first 2026/27 payment on account.
- 31 July 2027Second 2026/27 Self Assessment payment on account.
- 7 Aug / 7 Nov / 7 Feb / 7 MayStandard MTD Income Tax quarterly updates.
- 9 months + 1 dayUsual Corporation Tax payment deadline.
- 12 monthsCompany Tax Return after accounting period end.
- 22nd monthlyElectronic PAYE/NIC payment; 19th if paid non-electronically.
- 6 July / 22 JulyP11D/P11D(b) filing and usual electronic Class 1A NIC payment.
- 1 month + 7 daysMost VAT return and electronic payment deadlines.
Confirm the actual obligation
Quarterly instalment payments can apply to large and very large companies. VAT schemes, PAYE arrangements, MTD update-period elections and non-standard periods can change the date. Do not calendar client deadlines solely by rule of thumb.
OFFICIAL REFERENCE POINTS
Rules change.
Go back to the source.
This page was reviewed against official guidance available on 20 August 2026. Confirm the current position before acting.
PERSONAL ADVICE / COMMERCIAL CONTEXT
A tax card gives the rate.
Good advice gives the answer.
Rates and thresholds rarely determine the best course of action on their own. Timing, ownership, cash flow and future plans matter.