UK Tax Rates & Allowances 2025/26
A comprehensive reference guide covering Income Tax, National Insurance, Corporation Tax, and Capital Gains thresholds for the upcoming fiscal year.
Bewise Consultancy Ltd
United Kingdom Tax Card 2025-2026
Income Tax Allowances
| Allowance Type | 2025-26 | 2024-25 |
|---|---|---|
| Personal Allowance (PA) | £12,570 | £12,570 |
| Income limit for Personal Allowance | £100,000 | £100,000 |
| Marriage Allowance (Transferable) | £1,260 | £1,260 |
| Married Couple's Allowance (born < 1935) | £11,270 | £11,080 |
| Blind Person's Allowance | £3,130 | £3,070 |
| Dividend Allowance | £500 | £500 |
| Personal Savings Allowance (Basic Rate) | £1,000 | £1,000 |
| Personal Savings Allowance (Higher Rate) | £500 | £500 |
Note: The Personal Allowance reduces by £1 for every £2 of income above £100,000.
Income Tax Rates & Bands
| Band | Rate | Taxable Income (2025-26) |
|---|---|---|
| Basic Rate | 20% | £12,571 - £50,270 |
| Higher Rate | 40% | £50,271 - £125,140 |
| Additional Rate | 45% | Over £125,140 |
| Dividend Income Rates | 2025-26 Rate |
|---|---|
| Basic Rate | 8.75% |
| Higher Rate | 33.75% |
| Additional Rate | 39.35% |
National Insurance (Class 1 & 4)
| Category | Threshold / Limit | Rate |
|---|---|---|
| Employees (Class 1) | ||
| Primary Threshold | £242 per week | 0% |
| Standard Rate (PT to UEL) | £242 - £967 pw | 8% |
| Upper Rate (Above UEL) | Over £967 pw | 2% |
| Self-Employed (Class 4) | ||
| Lower Profits Limit | £12,570 | 0% |
| Main Rate Band | £12,570 - £50,270 | 6% |
| Upper Rate | Over £50,270 | 2% |
Employer's Class 1 rate is 15.05% on earnings above £96/week (Secondary Threshold).
Corporation Tax
| Profit Band | Rate |
|---|---|
| Small Profits Rate (Profits ≤ £50,000) | 19% |
| Main Rate (Profits > £250,000) | 25% |
| Marginal Relief Band | £50,001 - £250,000 |
Standard fraction for marginal relief is 3/200.
Capital Gains Tax
| Allowance / Rate Type | Amount/Rate |
|---|---|
| Annual Exempt Amount (Individuals) | £3,000 |
| Standard Rate Taxpayers | 10% |
| Higher/Additional Rate Taxpayers | 20% |
| Business Asset Disposal Relief | 10% |
Inheritance Tax
| Details | Value |
|---|---|
| Nil Rate Band Threshold | £325,000 |
| Standard Tax Rate (on excess) | 40% |
| Reduced Rate (10% left to charity) | 36% |