INCOME TAX
Personal Allowance
Income Tax Rates and Allowances (2024/25)
| Main Allowances | 2024/25 | 2023/24 |
|---|---|---|
| Personal Allowance*† | £12,570 | £12,570 |
| Blind Person’s Allowance | £3,070 | £2,870 |
| Married Couple’s Allowance (born before 6/4/35) ** | £11,080 | £10,375 |
| Income limit for age-related allowances | £37,400 | £36,400 |
| Dividend and Savings Allowances | ||
| Dividend Tax Allowance (DTA) § | £500 | £1,000 |
| Personal Savings Allowance (basic rate taxpayer) | £1,000 | £1,000 |
| Personal Savings Allowance (higher rate taxpayer) | £500 | £500 |
Your tax-free personal allowance will remain at £12,570 in 2025/26. The personal allowance is partially withdrawn if your income is over £100,000 and then fully withdrawn if your income is over £125,140.
Income Tax Rates and Allowances (2025/26)
| Income Type 2025/26 | ||||
|---|---|---|---|---|
| ‘Other income’ | Savings income | Dividend income | ||
| Basic rate | £1 – £37,700 | 20% | 20% | 8.75% |
| Higher rate | £37,701 – £125,140 | 40% | 40% | 33.75% |
| Additional rate | Over £125,140 | 45% | 45% | 39.35% |
Income Tax Bands for Scottish Taxpayers (2024/25)
| Band | Income Range | Rate |
|---|---|---|
| Starter rate | £1 – £2,306 | 19% |
| Basic rate | £2,307 – £13,991 | 20% |
| Intermediate rate | £13,992 – £31,092 | 21% |
| Higher rate | £31,093 – £62,430 | 42% |
| Advanced rate | £62,431 – £125,140 | 45% |
| Top rate | Over £125,140 | 48% |
CAPITAL GAINS TAX
| 2025/26 | 2024/25 | |
|---|---|---|
| Annual exempt amount | £3,000 | £3,000 |
| Rate of CGT on assets other than residential property and qualifying business disposals: | ||
| Within the basic rate band | 18% | 18% (From 30 October 2024), 10% (Prior to 30 October 2024) |
| Outside the basic rate band | 24% | 24% (From 30 October 2024), 20% (Prior to 30 October 2024) |
| Rate of CGT on residential property disposals: | ||
| Within the basic rate band | 18% | 18% |
| Outside the basic rate band | 24% | 24% |
| Rate of CGT on qualifying business disposals: | ||
| Business Asset Disposal Relief (BADR) lifetime limit | £1 million | £1 million |
| Rate of CGT on gains qualifying for BADR | 14% | 10% |
EMPLOYMENT TAXES
National Minimum Wage Rates (2024/25 – 2025/26)
| Age/Category | April 2024 – March 2025 | April 2025 – March 2026 |
|---|---|---|
| NLW – age 21 and over | £11.44 | £12.21 |
| NMW – 18-20 year old | £8.60 | £10.00 |
| NMW – 16-17 year old and apprentice | £6.40 | £7.55 |
National Insurance Contributions for Employees (2025/26)
| Range | 2025/26 | 2024/25 |
|---|---|---|
| Lower earnings limit (LEL) | £6,500 | £6,396 |
| Primary threshold (PT) | £12,570 | £12,570 |
| Upper earnings limit (UEL) | £50,270 | £50,270 |
| Earnings between the LEL and the PT | 0% | 0% |
| Earnings between PT and UEL | 8% | 8% |
| Earnings above UEL | 2% | 2% |
Benefits in Kind (2025/26)
| Type | 2025/26 | 2024/25 |
|---|---|---|
| Van benefit | £4,020 | £3,960 |
| Van fuel benefit | £769 | £757 |
| Car fuel benefit multiplier | £28,200 | £27,800 |
National Insurance for the Self-Employed (2025/26)
| 2025/26 | 2024/25 | |
|---|---|---|
| Class 2 NICs per year – mandatory | £nil | £nil |
| Class 2 NICs per year – voluntary | £182.00 | £179.40 |
| Small profits threshold (SPT) | £6,845 | £6,725 |
| Lower profits limit (LPL) | £12,570 | £12,570 |
| Upper profits limit (UPL) | £50,270 | £50,270 |
| Class 4 NICs on profits below the LPL | 0% | 0% |
| Class 4 NICs on profits between the LPL and the UPL | 6% | 6% |
| Class 4 rate on profits above the UPL | 2% | 2% |
VAT Registration and Deregistration Thresholds
| Amount | |
|---|---|
| Registration threshold | £90,000 |
| Deregistration threshold | £88,000 |
Corporation Taxes
| Financial year to 31 March 2026 | |
|---|---|
| Main rate | 25% |
| Small profits rate | 19% |
| Small profit threshold | £50,000 |
| Main rate threshold | £250,000 |
| Marginal relief fraction | 3/200 |
| Effective marginal relief rate | 26.5% |
Stamp Duty Land Tax (SDLT) Changes
| Threshold | 1 April 2024 – 31 March 2025 | From 1 April 2025 |
|---|---|---|
| Main threshold | £250,000 | £125,000 |
| First-time buyers’ threshold | £425,000 | £300,000 |
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