Tax Tables 2026/27
The year’s rates, allowances and thresholds, explained in plain English with charts and the tax calendar. No accounting or tax background needed.
Written for everyone
You don’t need an accounting background to use these tables
Each section starts with a short explanation in plain English, then the figures, with charts where a picture helps. Search for any word, or jump to a section. If something isn’t clear, call us on 020 8446 6911: we are always happy to explain.
- Tax year
- Runs from 6 April to 5 April. “26/27” means 6 April 2026 to 5 April 2027; the second column shows last year for comparison.
- Allowance
- An amount you can have tax-free, such as the £12,570 Personal Allowance.
- Band and rate
- A band is a slice of income or value; the rate is the percentage charged on that slice only.
- Threshold
- The point where a tax or a higher rate starts to apply.
- Relief
- A reduction in the tax you pay, often for doing something the government encourages, like saving into a pension.
Jargon buster
Income tax
In plain English
Everyone has a tax-free Personal Allowance of £12,570. Income above it is taxed in bands: 20%, then 40%, then 45%. Each rate applies only to the income inside its band, so moving into a higher band never increases the tax on what you earned below it. Above £100,000 the allowance is gradually taken away.
Income tax bands, England, Wales and Northern Ireland
Worked example: how a salary splits into take-home pay, income tax and National Insurance in 2026/27
Dividend tax rates rise by 2% for basic and higher rate taxpayers
Main personal allowances and reliefs
| Item | 26/27 | 25/26 |
|---|---|---|
| Personal allowance* | £12,570 | £12,570 |
| Marriage/civil partners’ transferable allowance | £1,260 | £1,260 |
| Blind person’s allowance | £3,250 | £3,130 |
| Rent-a-room relief | £7,500 | £7,500 |
| Property allowance and trading allowance (each) | £1,000 | £1,000 |
*Personal allowance reduced by £1 for every £2 of adjusted net income over £100,000.
UK taxpayers excluding Scottish taxpayers: non-dividend, non-savings income
| Item | 26/27 | 25/26 |
|---|---|---|
| 20% basic rate on taxable income up to | £37,700 | £37,700 |
| 40% higher rate on next slice of income over | £37,700 | £37,700 |
| 45% additional rate on income over | £125,140 | £125,140 |
Scottish taxpayers: non-dividend, non-savings income
| Item | 26/27 | 25/26 |
|---|---|---|
| 19% starter rate on taxable income up to | £3,967 | £2,827 |
| 20% basic rate on next slice up to | £16,956 | £14,921 |
| 21% intermediate rate on next slice up to | £31,092 | £31,092 |
| 42% higher rate on next slice up to | £62,430 | £62,430 |
| 45% advanced rate on next slice up to | £125,140 | £125,140 |
| 48% top rate on income over | £125,140 | £125,140 |
All UK taxpayers
| Item | 26/27 | 25/26 |
|---|---|---|
| Starting rate at 0% on band of savings income up to** | £5,000 | £5,000 |
| Personal savings allowance at 0%: basic rate | £1,000 | £1,000 |
| Personal savings allowance at 0%: higher rate | £500 | £500 |
| Personal savings allowance at 0%: additional rate | £0 | £0 |
| Dividend allowance at 0%: all individuals | £500 | £500 |
| Tax rate on dividend income: basic rate | 10.75% | 8.75% |
| Tax rate on dividend income: higher rate | 35.75% | 33.75% |
| Tax rate on dividend income: additional rate | 39.35% | 39.35% |
| Trusts: income exemption generally | £500 | £500 |
| Rate applicable to trusts: dividends | 39.35% | 39.35% |
| Rate applicable to trusts: other income | 45% | 45% |
**Not available if taxable non-savings income exceeds the starting rate band.
High Income Child Benefit Charge: 1% of benefit per £200 of adjusted net income between £60,000 and £80,000.
Pensions
In plain English
Paying into a pension attracts tax relief: the government adds tax back to your contributions, up to a yearly limit called the annual allowance. When you take your pension, part of it can usually be taken tax-free.
Registered pensions
| Item | 26/27 | 25/26 |
|---|---|---|
| Lump sum and death benefit allowance | £1,073,100 | £1,073,100 |
| Lump sum allowance | £268,275 | £268,275 |
| Money purchase annual allowance | £10,000 | £10,000 |
| Annual allowance* | £60,000 | £60,000 |
Annual allowance charge on excess is at applicable tax rate(s) on earnings.
*Reduced by £1 for every £2 of adjusted income over £260,000 to a minimum of £10,000, subject to threshold income being over £200,000.
State pensions
| Item | Annual | Weekly |
|---|---|---|
| New state pension | £12,547.60 | £241.30 |
| Basic state pension: single person* | £9,614.80 | £184.90 |
| Basic state pension: spouse/civil partner* | £5,759.00 | £110.75 |
*State pension age reached before 6/4/16.
ISAs & investments
In plain English
ISAs and certain investment schemes let your savings grow without tax on interest, dividends or gains, up to the yearly limits shown. Some schemes also give income tax relief when you invest.
Tax-incentivised investments
| Item | 26/27 | 25/26 |
|---|---|---|
| Total Individual Savings Account (ISA) limit, excluding Junior ISAs | £20,000 | £20,000 |
| Lifetime ISA | £4,000 | £4,000 |
| Junior ISA/Child Trust Fund | £9,000 | £9,000 |
| Venture Capital Trust (VCT) relief, up to £200,000 | 20% | 30% |
| Enterprise Investment Scheme (EIS) at 30%* | £2,000,000 | £2,000,000 |
| EIS eligible for CGT deferral relief | No limit | No limit |
| Seed EIS (SEIS) at 50% | £200,000 | £200,000 |
| SEIS CGT reinvestment relief | 50% | 50% |
*Above £1,000,000 investment must be in knowledge-intensive companies.
National Insurance
In plain English
National Insurance is paid on earnings, separately from income tax, and builds your entitlement to the State Pension. Employees pay it once their pay passes a weekly threshold, employers pay their own share on top, and self-employed people pay on their profits.
Class 1 National Insurance by weekly earnings
Class 1
| Item | Employee | Employer |
|---|---|---|
| NICs rate | 8% | 15% |
| No NICs for employees generally on the first | £242 pw | £96 pw |
| No NICs for younger employees* on the first | £242 pw | £967 pw |
| NICs rate charged up to | £967 pw | No limit |
| 2% NICs on earnings over | £967 pw | N/A |
*No employer NICs on the first £967 pw for employees generally under 21 years, apprentices under 25 years and veterans in the first 12 months of civilian employment. No employer NICs on the first £481 pw for employees at freeports and investment zones in the first 36 months of employment.
Other classes
| Employment allowance (per business; not available if the sole employee is a director) | £10,500 |
|---|---|
| Class 1A employer: on most employees’ and directors’ taxable benefits | 15% |
| Class 2 self-employed: flat rate per week (voluntary) | £3.65 (£189.80 pa) |
| Class 2 small profits threshold | £7,105 |
| Class 4 self-employed: annual profits £12,570 to £50,270 | 6% |
| Class 4 self-employed: over £50,270 | 2% |
| Class 3 voluntary: flat rate per week | £18.40 (£956.80 pa) |
Capital gains tax
In plain English
Capital gains tax is paid on the profit when you sell or give away something that has gone up in value, such as shares or a second property. Your main home is usually exempt, and everyone has a small tax-free amount each year.
| Item | 26/27 | 25/26 |
|---|---|---|
| Annual exemption: individuals, estates, etc | £3,000 | £3,000 |
| Annual exemption: trusts generally | £1,500 | £1,500 |
| Tax rate below UK higher rate band | 18% | 18% |
| Tax rate within UK higher and additional rate bands | 24% | 24% |
| Carried interest (all tax bands) | N/A | 32% |
| Trusts and estates | 24% | 24% |
Business Asset Disposal Relief: 18% (14% in 25/26) on a lifetime limit of £1,000,000 for trading businesses and companies (minimum 5% participation) held for at least 2 years.
Inheritance tax
In plain English
Inheritance tax can be due when someone dies and their estate is worth more than the tax-free amounts, usually at 40% on the excess. Anything left to a husband, wife or civil partner is normally free of tax, and gifts made more than seven years before death are usually tax-free.
How much can pass free of inheritance tax
Taper relief on lifetime gifts
26/27 and 25/26
| Nil-rate band*/residence nil-rate band*† | £325,000/£175,000 |
|---|---|
| Rate of tax on excess/if at least 10% of net estate left to charity | 40%/36% |
| Lifetime transfers to and from certain trusts | 20% |
| Non-long-term resident spouse/civil partner exemption | £325,000 |
| Annual exempt gifts | £3,000 per donor, £250 per donee |
*Up to 100% of the unused proportion can be claimed on the surviving spouse’s/civil partner’s death.
†Estates over £2,000,000: reduced by 50% of the excess over £2,000,000.
Tapered tax charge on lifetime gifts between 3 and 7 years of death: years 0–3 full 40% rate, then 8% less for each year until 0% at 7 or more years.
Reliefs
| Item | Businesses, unlisted shares, some farms | AIM shares | Certain other assets |
|---|---|---|---|
| 26/27 | 100% up to £2,500,000*, 50% thereafter | 50% | 50% |
| 25/26 | 100% | 100% | 50% |
*Up to 100% of the unused proportion can be claimed on the surviving spouse’s/civil partner’s death.
Stamp duty & property
In plain English
Stamp Duty Land Tax is paid when you buy property in England or Northern Ireland. It works in slices like income tax: each rate applies only to the part of the price within that band. Higher rates apply when buying an additional property.
SDLT residential slices, England and Northern Ireland
Stamp Duty and SDRT
| Stocks and marketable securities* | 0.5% |
|---|---|
| Additional residential and all corporate residential properties £40,000 or more | Add 5% to SDLT, 8% to LBTT, 5% to most LTT rates |
*0% SDRT for transfers of newly UK listed securities from 27 November 2025.
England & Northern Ireland: SDLT on slices of value
| Residential | % | Commercial† | % |
|---|---|---|---|
| Up to £125,000 | 0 | Up to £150,000 | 0 |
| £125,001–£250,000 | 2 | £150,001–£250,000 | 2 |
| £250,001–£925,000 | 5 | Over £250,000 | 5 |
| £925,001–£1,500,000 | 10 | ||
| Over £1,500,000 | 12 |
First-time buyers: 0% on the first £300,000 for properties up to £500,000.
Non-resident purchasers: 2% surcharge on properties of £40,000 or more.
Residential properties bought by companies etc over £500,000: 17% of total consideration, subject to certain exemptions.
Scotland: LBTT on slices of value
| Residential | % | Commercial† | % |
|---|---|---|---|
| Up to £145,000 | 0 | Up to £150,000 | 0 |
| £145,001–£250,000 | 2 | £150,001–£250,000 | 1 |
| £250,001–£325,000 | 5 | Over £250,000 | 5 |
| £325,001–£750,000 | 10 | ||
| Over £750,000 | 12 |
First-time buyers: 0% on the first £175,000.
Wales: LTT on slices of value
| Residential | % | Commercial† | % |
|---|---|---|---|
| Up to £225,000 | 0 | Up to £225,000 | 0 |
| £225,001–£400,000 | 6 | £225,001–£250,000 | 1 |
| £400,001–£750,000 | 7.5 | £250,001–£1,000,000 | 5 |
| £750,001–£1,500,000 | 10 | Over £1,000,000 | 6 |
| Over £1,500,000 | 12 |
†0% for freeport and investment zone qualifying property.
Corporation tax
In plain English
Limited companies pay corporation tax on their profits. Smaller profits pay a lower rate and larger profits the main rate, with marginal relief easing the step between the two.
Corporation tax rates by profit
Year to 31/3/27 and 31/3/26
| Item | Effective rate | Diverted profits |
|---|---|---|
| Profits £0–£50,000 | 19.0% | 31% |
| Profits £50,001–£250,000 | 26.5% | 31% |
| Profits £250,001 and above | 25.0% | 31% |
| Loans to participators | 33.75% |
VAT
In plain English
VAT is added to the price of most goods and services. A business must register once its taxable sales pass the registration threshold, then charge VAT to customers and reclaim the VAT it pays on costs.
| Standard rate | 20% |
|---|---|
| Domestic fuel | 5% |
| Installation of energy saving materials (except Northern Ireland) | 0% |
| Registration level | £90,000 |
| Deregistration | £88,000 |
| Flat rate scheme turnover limit | £150,000 |
| Cash and annual accounting schemes turnover limit | £1,350,000 |
Capital allowances
In plain English
Capital allowances are tax relief on things a business buys to use for the long term, such as equipment, machinery and vans. Many purchases can be deducted in full in the year they are bought.
Main capital and other allowances
| Plant & machinery (P&M) 100% annual investment allowance (1st year) | £1,000,000 |
|---|---|
| P&M allowance for companies (1st year)* | 100% |
| Special rate P&M allowance for companies (1st year)* | 50% |
| P&M allowance for all businesses (1st year) from 1 January 2026* | 40% |
| P&M** | 14% |
| Patent rights and know-how** | 25% |
| Special rate P&M, e.g. long-life assets and integral features of buildings** | 6% |
| Structures and buildings (straight line)† | 3% |
*New and unused only. **Annual reducing balance. †10% for freeports and investment zones.
Motor cars
| Item | 0g/km* | 1–50g/km | Over 50g/km |
|---|---|---|---|
| Capital allowance (CO₂ emissions) | 100% first year | 18% pa** | 6% pa** |
Research and Development (R&D)
| Capital expenditure | 100% |
|---|---|
| R&D merged scheme | 20% |
| R&D intensive SME payable credit | 14.5% |
| R&D intensive SME intensity ratio | 30% |
Cars, vans & mileage
In plain English
A company car is taxed as a benefit, based on its list price and CO2 emissions; electric cars are taxed lowest. If you use your own vehicle for work, your employer can pay you the approved mileage rates tax-free.
Car benefits
| Zero emission cars | 4% |
|---|---|
| Hybrids 1–50g/km, electric-only range under 30 miles | 16% |
| Hybrids 1–50g/km, range 30–39 miles | 14% |
| Hybrids 1–50g/km, range 40–69 miles | 10% |
| Hybrids 1–50g/km, range 70–129 miles | 7% |
| Hybrids 1–50g/km, range 130+ miles | 4% |
| All non-diesel cars 51–54g/km | 17% |
| All non-diesel cars 55g/km and over* | 18%–37% |
| Diesels not meeting RDE2 | Add 4%, up to 37% |
Taxable amount based on original list price and CO₂ emissions in g/km.
*Increased in 1% increments up to the maximum 37% (at 155g/km and over).
Fuel and vans
| Item | 26/27 | 25/26 |
|---|---|---|
| Car fuel benefit: car benefit % multiplied by | £29,200 | £28,200 |
| Zero emission vans: chargeable amount | Nil | Nil |
| Other vans: chargeable amount | £4,170 | £4,020 |
| Van fuel: chargeable amount | £798 | £769 |
Tax-free business mileage: own vehicle
| Cars and vans: first 10,000 miles | 45p per mile |
|---|---|
| Cars and vans: thereafter | 25p per mile |
| Qualifying passenger | 5p per mile |
| Motorcycles | 24p per mile |
| Bicycles | 20p per mile |
Benefits & pay
In plain English
The minimum hourly pay employers must pay by age, and the weekly statutory payments for sick, maternity, paternity and other leave.
Statutory pay rates (weekly, 2026/27)
| Statutory Sick Pay | £123.25 standard rate |
|---|---|
| Statutory Maternity/Adoption Pay: first 6 weeks | 90% of average weekly pay |
| Statutory Maternity/Adoption Pay: next 33 weeks | 90% of average weekly pay up to £194.32 |
| Statutory Paternity Pay | 90% of average weekly pay up to £194.32 |
| Shared Parental Pay (up to 37 weeks) | 90% of average weekly pay up to £194.32 |
| Child Benefit: first or only child | £27.05 |
| Child Benefit: each subsequent child | £17.90 |
| Scottish Child Payment (certain claimants, per child under 16) | £28.20 |
Statutory pay is based on minimum average earnings of at least £129 pw (except Statutory Sick Pay).
National Living Wage and National Minimum Wage (year to 31/3/27)
| Item | £/hour |
|---|---|
| NLW: aged 21 and over | £12.71 |
| NMW: aged 18–20 | £10.85 |
| NMW: under 18/apprentice | £8.00 |
Payment due dates
In plain English
When tax has to be paid. Paying late usually means interest, and sometimes penalties, so keep these dates in your diary or ask us to remind you.
Income tax, NICs and CGT: Self Assessment
| 31 January in tax year | Normally 50% of previous year’s income tax (less tax deducted at source) and class 4 NICs |
|---|---|
| Following 31 July | As above |
| Following 31 January | Balance of income tax, class 4 NICs and CGT, plus class 2 NICs paid voluntarily |
Inheritance tax
| On death | Normally 6 months after the end of the month of death |
|---|---|
| Lifetime transfer 6 April–30 September | 30 April in the following year |
| Lifetime transfer 1 October–5 April | 6 months after the end of the month of transfer |
Capital gains tax: residential UK property
| Report and pay | Within 60 days of completion |
|---|
Corporation tax: Self Assessment
| Profits under £1,500,000 | 9 months + 1 day after the end of the accounting period |
|---|---|
| Profits £1,500,000–£20,000,000 | Normally in the 7th, 10th, 13th and 16th months after the start of the accounting period |
| Profits over £20,000,000 | Normally in the 3rd, 6th, 9th and 12th months after the start of the accounting period |
| Growing companies | No instalments where profits are £10,000,000 or less and the company was not large the previous year |
2026/27 tax calendar
Make payment on the previous working day where the due date falls on a weekend or bank holiday.
Every month
- 19Submit CIS contractors’ monthly return.
- 22PAYE, NICs and CIS deductions paid electronically for the period ending the 5th (19th if not paying electronically).
- Month endSubmit CT600 for the year ending 12 months previously. Last day to amend the CT600 for the year ending 24 months previously.
- 1Apr 2026 New 40% first-year allowance for incorporated businesses. National Minimum Wage rates rise.
- 6Apr 2026 Dividend ordinary and upper rates rise by 2% (additional rate unchanged). VCT income tax relief cut to 20%. New 40% first-year capital allowance for all businesses. Business Asset Disposal Relief rate rises to 18%. Making Tax Digital for Income Tax starts for self-employed people and landlords with qualifying income over £50,000.
- 5Jul 2026 Last date to agree a new PAYE Settlement Agreement (PSA) for 2025/26.
- 6Jul 2026 Employers submit P11D and P11D(b) for 2025/26 to HMRC and give copies to employees.
- 22Jul 2026 Pay class 1A NICs (19 July if not paying electronically).
- 31Jul 2026 Second payment on account for 2025/26 income tax and class 4 NICs.
- 1Aug 2026 Penalty of 5% of the tax due or £300, whichever is greater, where the 2024/25 tax return has not been filed.
- 5Oct 2026 Deadline to register for Self Assessment for 2025/26.
- 22Oct 2026 Pay tax and class 1B NICs on PSAs (19th if not paying electronically).
- 31Oct 2026 Deadline for 2025/26 tax returns filed on paper.
- 30Dec 2026 File the 2025/26 return online by today to have underpaid PAYE tax collected through your 2027/28 tax code.
- 31Jan 2027 File the 2025/26 Self Assessment return online. Pay the balance of 2025/26 income tax, class 4 NICs, CGT and voluntary class 2 NICs, plus the first payment on account for 2026/27.
- 1Feb 2027 Initial penalty where the 2025/26 return has not been filed, or was filed on paper after 31 October 2026.
- 3Mar 2027 First 5% penalty on 2025/26 tax still unpaid.
- 6Apr 2027 Income tax rates on property income (England and Northern Ireland) and savings income rise by 2%. Making Tax Digital threshold falls to qualifying income over £30,000. (The planned cut to the cash ISA limit was reversed in the Autumn Budget 2026, so it stays at £20,000.)
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Copyright 3 March 2026. Subject to relevant legislation. For information only. Always seek professional advice before acting. Errington Langer Pinner, Chartered Accountants, 020 8446 6911, tax@elp-ca.co.uk.