UK TAX RATES 2026/27
UK Tax Rates 2026/27
1. INCOME TAX (Individuals)
Personal Allowance: £12,570
Marriage Allowance (transferable): £1,260
Tax Bands
Starting rate (savings)
£0–£5,000
0%
Basic rate
Up to £37,700
20%
Higher rate
£37,701–£125,140
40%
Additional rate
Over £125,140
45%
Allowances
Dividend Allowance: £1,000
Trading Allowance: £1,000
Property Allowance: £1,000
Savings Allowance:
Basic rate: £1,000
Higher rate: £500
Trust Rates
Standard rate band: 20%
Dividend trust rate: 39.35%
Other income: 45%
2. NATIONAL INSURANCE
Employees (Class 1)
8% (Primary threshold → UEL)
2% (Above UEL)
Employers
15% (Above secondary threshold)
Self-Employed (Class 4)
6% (Main profits band)
2% (Above upper profits limit)
3. CORPORATION TAX
Profits Up to £50,000
Rate 19%
Profits £50,001–£250,000
Marginal relief
Over £250,000
Rate 25%
Effective marginal rate: ~26.5%
4. CAPITAL GAINS TAX (CGT)
Annual Exempt Amount (Individuals): £3,000
Basic rate tax payer
18%
Higher/additional
24%
Trust exempt amount: £1,500
Business Asset Disposal Relief: 14%
5. INHERITANCE TAX (IHT)
Nil Rate Band: £325,000
Residence NRB: £175,000
Death rate: 40%
Lifetime transfers: 20%
Reduced rate (10% charity): 36%
6. REGISTERED PENSIONS
Annual Allowance: £60,000
Minimum Tapered Allowance: £10,000
Lump Sum Allowance: £268,275
7. VAT
Standard Rate: 20%
Reduced Rate: 5%
Registration Threshold: £90,000
Deregistration: £88,000
Flat Rate Scheme limit: £150,000
8. CAPITAL ALLOWANCES
Annual Investment Allowance: 100% (up to £1m)
Main Pool WDA: 18%
Special Rate Pool WDA: 6%
First Year Allowance: 100% (qualifying assets)
Please note, all our content is for general guideline only, every case is different and we would recommend speaking to us before taking any action as a result of the content. The content was correct at the time it was published.