Income tax (England, Wales, NI)
- Personal allowance
- £12,570
- Tapered above
- £100,000
- Basic rate (20%)
- Up to £50,270
- Higher rate (40%)
- £50,271 to £125,140
- Additional rate (45%)
- Over £125,140
Tax rates
UK tax rates for 2026/27
The headline figures NI businesses and individuals need for the tax year running from 6 April 2026 to 5 April 2027. We update this page each April when new rates take effect.
Dividend tax
- Dividend allowance
- £500
- Basic rate
- 10.75% (was 8.75)
- Higher rate
- 35.75% (was 33.75)
- Additional rate
- 39.35%
National Insurance
- Employee main rate
- 8% (above primary threshold)
- Employee additional rate
- 2% (above UEL)
- Employer rate
- 15% (above secondary threshold)
- Primary threshold
- £12,570
- Secondary threshold
- £5,000
- Lower earnings limit
- £6,500
- Employment allowance
- £10,500
Class 4 NIC (self-employed)
- Main rate
- 6%
- Additional rate
- 2% (above UPL)
- Lower profits limit
- £12,570
- Upper profits limit
- £50,270
Corporation tax
- Small profits rate
- 19% (profits up to £50,000)
- Main rate
- 25% (profits over £250,000)
- Marginal relief band
- £50,001 to £250,000
- Effective marginal rate
- 26.5% in the relief band
Capital gains tax
- Annual exempt amount
- £3,000
- Non-residential (basic rate)
- 18%
- Non-residential (higher rate)
- 24%
- Residential (basic rate)
- 18%
- Residential (higher rate)
- 24%
- BADR rate
- 18% (was 14)
- BADR lifetime limit
- £1,000,000
Inheritance tax
- Nil rate band
- £325,000
- Residence nil rate band
- £175,000
- Rate above bands
- 40%
- BPR / APR 100% relief cap
- £1,000,000 per individual
- BPR / APR relief above cap
- 50%
VAT
- Standard rate
- 20%
- Reduced rate
- 5%
- Registration threshold
- £90,000 (rolling 12-month turnover)
- Deregistration threshold
- £88,000
Capital allowances
- Annual Investment Allowance
- £1,000,000 per year
- Structures & Buildings Allowance
- 3% per year (straight-line)
- Main pool
- 18% per year (reducing balance)
- Special rate pool
- 6% per year (reducing balance)
- Full expensing
- 100% in year one (companies, new plant and machinery)
Pension contributions
- Annual allowance
- £60,000 (or 100% of earnings if lower)
- Carry forward
- Unused allowance from the three previous tax years
Making Tax Digital for Income Tax
- Phase 1
- From April 2026: self-employment + property income over £50,000
- Phase 2
- From April 2027: income over £30,000
- Phase 3
- From April 2028: income over £20,000
Figures sourced from gov.uk and HM Treasury budget documentation. Income tax bands shown apply in England, Wales and Northern Ireland; Scotland has its own bands. If you spot a number that looks out of date, please let us know — we update this page each April when the new rates take effect.
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