| Band | 2024-25 | 2025-26 | ||||
|---|---|---|---|---|---|---|
| Taxable Income | Rate % | Dividend Rate % | Taxable Income | Rate % | Dividend Rate % | |
| Basic rate | £ 0 to £ 37,700 | 20.0% * | 8.75% | £ 0 to £ 37,700 | 20.0% * | 8.75% |
| Higher rate | £ 37,701 to £ 125,140 | 40.0% | 33.75% | £ 37,701 to £ 125,140 | 40.0% | 33.75% |
| Additional rate | Over £ 125,141 | 45.0% | 39.35% | Over £ 125,141 | 45.0% | 39.35% |
| Personal Savings Allowance (PSA) ** | ||||||
| Basic rate taxpayer | £ 1,000 | £ 1,000 | ||||
| Higher rate taxpayer | £ 500 | £ 500 | ||||
| Additional rate taxpayer | Nil | Nil | ||||
| Certain trusts taxed at 45% (39.35% on dividend income). | ||||||
|
* Savings income of up to £ 5,000 taxable at 0% in certain circumstances. ** Personal saving allowance utilises the basic and higher rate bands. | ||||||
| Allowances | 2024-25 | 2025-26 | |
|---|---|---|---|
| Dividend Allowance (DA) | £ 500 | £ 500 | |
| Personal Allowance (PA) | (A,B) | £ 12,570 | £ 12,570 |
| Marriage Allowance | (B,C) | £ 1,260 | £ 1,260 |
| Blind Person’s Allowance | (B) | £ 3,070 | £ 3,130 |
| Rent a room relief (maximum) | £ 7,500 | £ 7,500 | |
| Trading Income Allowance | (D) | £ 1,000 | £ 1,000 |
| Property Income Allowance | (D) | £ 1,000 | £ 1,000 |
|
(A) Reduced by £1 for every £2 of income over £100,000. (B) Non-residents may not be entitled to personal allowances. (C) Transferable allowance applies only to basic-rate taxpayers. (D) £1,000 deduction instead of actual expenses if gross income exceeds £1,000. | |||
| High Income Child Benefit Charge: 1% of benefit per £200 of adjusted net income between £60,000 and £80,000. | |||
| Class 1 (Employees) | 2025-26 | |
|---|---|---|
| Employee | Employer | |
| Main NIC rate | 8% | 15% |
| No NICs for employees generally on the first | £ 242 pw | £ 96 pw |
| No NICs for younger employees* | £ 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 under 21, apprentices under 25, veterans (first 12 months), and freeport/investment zone employees. | ||
| Employment Allowance | £ 10,500 | |
| Per business – not available if sole employee is a director | ||
| Class 1A Employer | ||
| On most employees’ and directors’ taxable benefits | 15% | |
| Class 2 (Self-employed) | ||
| Flat rate (if earnings exceed £ 6,845) | £ 3.50 pw | |
| Small profits threshold | £ 6,845 | |
| Class 3 (Voluntary) | ||
| Class 3: Flat rate per week | £ 17.75 | |
| Class 4 (Self-employed) | ||
| On profits between £12,570 and £50,270 | 6% | |
| On profits over £50,270 | 2% | |
| Details | 2024-25 | 2025-26 |
|---|---|---|
| Annual exempt amount | ||
| Individuals | £ 3,000 | £ 3,000 |
| Trusts | £ 1,500 (A) | £ 1,500 (A) |
| Tax rate | ||
| Basic rate taxpayers | 18% | 18% |
| Higher rate taxpayers | 24% (B) | 24% (B) |
| Trustees | 24% (B) | 24% (B) |
| Business Asset Disposal (capped at £1m lifetime) | 10% | 14% |
| Investors’ Relief | 10% | 14% (C) |
| (A) Exempt amount subject to related trusts rules. (B) Gains on carried interest taxed at 28% (32% in 2025–26). (C) Increasing to 18% from 6 April 2026. |
|---|
| Year to | 2024-25 | 2025-26 | ||
|---|---|---|---|---|
| Corporation Tax (Main rate) | (A,C) | 25.00% | 25.00% | |
| Corporation Tax (Small profits rate) | (B,C) | 19.00% | 19.00% | |
| Loans to participators | 33.75% | 33.75% | ||
| Corporation tax on restitution interest payments | (D) | 45% | 45% | |
| Diverted profits tax | (E) | 31% | 31% | |
| (A) Applies to companies with taxable profits over £250,000 (adjusted for associated companies). (B) Applies to companies with taxable profits below £50,000 (adjusted for associated companies). (C) Marginal relief applies between £50,000 and £250,000. (D) Withheld at source. (E) Applies to profits diverted from the UK (55% for ring-fenced entities). |
|---|
| Details | 2025-26 |
|---|---|
| Standard rate | 20% |
| Reduced rate | 5% |
| Taxable Turnover Limits | |
| Annual turnover threshold for registration | £ 90,000 per annum |
| Annual turnover limit for deregistration | £ 88,000 per annum |
| Flat Rate Scheme (FRS) | |
| Flat rate scheme turnover limit | £ 150,000 |
| Cash accounting & Annual accounting schemes | |
| Annual taxable turnover to enter scheme | Up to £ 1.35m |
| Must leave scheme if annual taxable turnover | Exceeds £ 1.60m |
| State pension (per week) | 2024–25 | 2025–26 |
|---|---|---|
| Basic State Pension | £ 169.50 | £ 176.45 |
| New State Pension * | £ 221.20 | £ 230.25 |
| * For those reaching State Pension age on or after 6 April 2016 | ||
Taxable benefit: List price of car × chargeable percentage.
| CO₂ g/km | Electric Range (miles) | 2024–25 | 2025–26 |
|---|---|---|---|
| 0 | N/A | 2% | 3% |
| 1–50 | >130 | 2% | 3% |
| 1–50 | 70–129 | 5% | 6% |
| 1–50 | 40–69 | 8% | 9% |
| 1–50 | 30–39 | 12% | 13% |
| 1–50 | <30 | 14% | 15% |
| 51–54 | N/A | 15% | 16% |
| Then +1% for each 5g/km CO₂, up to a maximum of 37%. | |||
| Diesel cars not meeting RDE2 standards incur a 4% supplement (still capped at 37%). | |||
| Fuel Benefit | 2024–25 | 2025–26 |
|---|---|---|
| Multiply the CO₂% used for the car benefit by | £ 27,800 | £ 28,200 |
| Vans – Fixed charge | £ 3,960 | £ 4,020 |
| Vans – Fuel benefit (private fuel provided) | £ 757 | £ 769 |
| Zero-emission vans | £ 0 | £ 0 |
| Employee contributions do not reduce the taxable figure unless ALL private fuel is paid by the employee. | ||
The Child Trust Fund (CTF) is a long-term tax-free savings account for children born between 1 September 2002 and 2 January 2011.
The money belongs to the child and cannot be withdrawn until age 18. Up to £9,000 can be added in the 2024–25 tax year.
The scheme is now closed. New accounts cannot be opened.
Junior ISA
You cannot have both a Junior ISA and a Child Trust Fund. If you want a Junior ISA, the provider must transfer the CTF into it.
Your child can only have:
- 1 cash Junior ISA
- 1 stocks and shares Junior ISA
Anyone can contribute, but the total limit is £9,000 per tax year (2024–25).
Effective from 01 December 2024
For employee private mileage reimbursement or employer reimbursement of business mileage in company cars.
Petrol – rate per mile
| Engine Size | Rate per mile |
|---|---|
| 1400cc or less | 12p |
| 1401cc – 2000cc | 14p |
| Over 2000cc | 23p |
LPG – rate per mile
| Engine Size | Rate per mile |
|---|---|
| 1400cc or less | 11p |
| 1401cc – 2000cc | 13p |
| Over 2000cc | 21p |
Diesel – rate per mile
| Engine Size | Rate per mile |
|---|---|
| 1600cc or less | 11p |
| 1601cc – 2000cc | 13p |
| Over 2000cc | 17p |
2023–24
Share Incentive Plans
| Description | Amount |
|---|---|
| Employer contributions | £3,600 |
| Employer matching | (2:1) |
| Employee | £1,800 |
Other Limits
| Enterprise Management Incentive option value | £250,000 |
| Approved share option schemes option value | £30,000 |
| Savings-related share options per month (up to) | £500 |
| Description | 2024–25 | 2025–26 |
|---|---|---|
| Overall limit | £20,000 | £20,000 |
| Lifetime ISA | £4,000 | £4,000 |
| Junior ISA | £9,000 | £9,000 |
Investment Reliefs
| Relief Type | Relief % | Limit |
|---|---|---|
| EIS | 30% | £2,000,000 |
| Seed EIS (SEIS) | 50% | £200,000 |
| Venture Capital Trust (VCT) | 30% | £200,000 |
| Description | 2024–25 | 2025–26 |
|---|---|---|
| Nil rate band (NRB) (1) | £325,000 | £325,000 |
| NRB Residential enhancement (RNRB) (2) | £175,000 | £175,000 |
| Tax rate on death (3) | 40% | 40% |
| Tax rate on lifetime transfers to most trusts | 20% | 20% |
|
(1) Up to 100% of unused NRB/RNRB from a deceased spouse/civil partner may be transferred. (2) RNRB applies to transfers of a main residence to direct descendants. Tapers by £1 for every £2 above £2m estate value. (3) Rate reduced to 36% if ≥10% of estate left to charity. Unlimited exemption for transfers between spouses/civil partners (with exceptions for foreign domiciled transferees). |
|---|
100% Business Property Relief (BPR)
Applies to qualifying unquoted trading companies, unincorporated trading businesses, and certain farmland/buildings.
Reduced Tax Charge on Gifts Within 7 Years Before Death
| Years before death | % of full death tax charge payable |
|---|---|
| 0–3 | 100% |
| 3–4 | 80% |
| 4–5 | 60% |
| 5–6 | 40% |
| 6–7 | 20% |
Annual exemptions for lifetime gifts include £3,000 per donor and £250 per recipient.
Plant and Machinery Allowances
| Description | Rate | Notes |
|---|---|---|
| First-year allowance (main pool expenditure) | 100% | Expenditure 1.4.25 – 31.3.26 (companies only) |
| Super-deduction (main pool expenditure) | N/A | |
| First-year allowance (special rate pool) | 50% | |
| Annual Investment Allowance (AIA) | 100% | Up to £1m (1.4.25 – 31.3.26) |
| New electric vans | 100% | |
| Writing down allowance – general pool | 18% | Reducing balance |
| Writing down allowance – special rate pool | 6% | Reducing balance |
Motor Cars Purchased
| CO₂ (g/km) | Allowance | Notes |
|---|---|---|
| Nil (new cars only) | 100% | Up to 50 g/km |
| Up to 50 | 18% | General pool |
| Above 50 | 6% | Special rate pool |
Structures and Buildings Allowance
| Fixed deduction per annum | 3% |
Self Assessment
| Payment | 2024/25 | 2025/26 |
|---|---|---|
| 1st payment on account | 31 January 2025 | 31 January 2026 |
| 2nd payment on account | 31 July 2025 | 31 July 2026 |
| Balancing payment | 31 January 2026 | 31 January 2027 |
| Capital Gains Tax (A) | 31 January 2026 | 31 January 2027 |
(A) A CGT return is due within 60 days of completion of sale of UK land/buildings by non‑residents, and UK residential property with tax due by residents.
Other Payment Dates
| Payment | 2024/25 | 2025/26 |
|---|---|---|
| Class 1A NIC | 19 July 2025 | 19 July 2026 |
| Class 1B NIC | 19 October 2025 | 19 October 2026 |
Corporation tax is due 9 months and 1 day after the end of the accounting period, unless paid by quarterly instalments.
Filing Deadlines
| Filing | 2024/25 | 2025/26 |
|---|---|---|
| Issue P60s to employees | 31 May 2025 | 31 May 2026 |
| P11D, P11D(b) | 6 July 2025 | 6 July 2026 |
| Paper SATR | 31 October 2025 | 31 October 2026 |
| Online SATR (PAYE coding option) | 30 December 2025 | 30 December 2026 |
| Online SATR | 31 January 2026 | 31 January 2027 |
A CGT return is due within 60 days of completion of sale of UK land/buildings where tax is payable.
Working Tax Credit (No Children)
| Annual Income (£) | Single (30+ hrs) | Couple (30+ hrs) |
|---|---|---|
| 11,700* | 795 | 2,615 |
| 12,000 | 485 | 2,495 |
| 13,000 | 75 | 2,085 |
| 14,000 | – | 1,675 |
| 15,000 | – | 1,265 |
| 16,000 | – | 855 |
| 17,000 | – | 445 |
| 18,000 | – | 35 |
| 19,000+ | – | – |
* Based on National Living Wage (April 2017 rates).
Working & Child Tax Credit (With Children)
| Annual Income (£) | One Child | Two Children | Three Children |
|---|---|---|---|
| 6,240 | 7,300 | 10,080 | 12,865 |
| 11,700 | 5,945 | 8,725 | 11,510 |
| 15,000 | 4,595 | 7,375 | 10,155 |
| 20,000 | 2,545 | 5,325 | 8,105 |
| 25,000 | 495 | 3,275 | 6,055 |
| 30,000 | – | 1,225 | 4,005 |
| 35,000 | – | – | 1,955 |
| 40,000+ | – | – | – |
Child Tax Credit Only
| Annual Income (£) | One Child | Two Children | Three Children |
|---|---|---|---|
| No income | 3,330 | 6,110 | 8,890 |
| 5,000 | 3,330 | 6,110 | 8,890 |
| 8,000 | 3,330 | 6,110 | 8,890 |
| 10,000 | 3,330 | 6,110 | 8,890 |
| 15,000 | 3,330 | 6,110 | 8,890 |
| 20,000 | 1,730 | 4,515 | 7,295 |
| 25,000 | – | 2,465 | 5,245 |
| 30,000 | – | 415 | 3,195 |
| 35,000 | – | – | 1,145 |
| 40,000 | – | – | – |
If your income is £15,000 and you have 2 children (not eligible for WTC), you could receive £6,110 per year (£117.50/week).
| Description | 2024/25 | 2025/26 |
|---|---|---|
| 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 (AA)* | £60,000 | £60,000 |
Annual allowance charge: Excess is taxed at applicable income tax rates.
* Reduced by £1 for every £2 of adjusted income over £260,000 (minimum £10,000), subject to threshold income exceeding £200,000.
Residential Property (From 1 April 2025)
| Value Band | Standard Rate (Single) | Buy-to-Let / Second Home |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,000* – £250,000 | 2% | 7% |
| £250,000 – £925,000 | 5% | 10% |
| £925,000 – £1,500,000 | 10% | 15% |
| Over £1,500,000** | 12% | 17% |
SDLT on non-residential property now uses the same banded system as residential.
Commercial Property
| Value Band | Tax Rate |
|---|---|
| Up to £150,000 | 0% |
| £150,000 – £250,000 | 2% |
| Over £250,000 | 5% |
Shares & Securities
Stamp duty / SDRT generally charged at 0.5%.
No duty on purchases of £1,000 or less.
New Leases
Residential: 1% on NPV over £125,000.
Non-residential: 1% on NPV over £150,000, rising to 2% above £5m.
VAT excluded unless landlord has opted to charge VAT.
Lease Premiums
Duty on premiums follows the same rates as transfers of land.
Approved Mileage Allowance Payments (AMAPs) apply when employees use their own vehicles for business travel.
Cars & Vans
| Mileage Band | Rate |
|---|---|
| First 10,000 miles | 45p per mile |
| Each additional mile | 25p per mile |
| Business passengers | 5p per mile |
Motorcycles
24p per mile
Bicycles
20p per mile
If employers reimburse below AMAP rates, employees may claim tax relief on the shortfall.
Up to 5p per mile per passenger is tax/NIC‑free for carrying fellow employees or volunteers on business journeys.