UK Tax Card 2025/26: Rates, Allowances and Thresholds at a Glance
The key UK tax rates, reliefs and thresholds for the 2025/26 tax year, with 2024/25 figures for comparison, covering Corporation Tax, Income Tax, Capital Gains Tax, Dividends, VAT, National Insurance, Pensions, Inheritance Tax, R&D relief and Stamp Duty Land Tax.
Corporation Tax rates
| Corporation Tax | 2025/26 | 2024/25 |
|---|---|---|
| Main rate (profits over £250,000) | 25% | 25% |
| Small profits rate (profits up to £50,000) | 19% | 19% |
| Standard fraction for marginal relief (£50,000–£250,000) | 3/200 | 3/200 |
Income Tax rates and thresholds
| Income Tax | 2025/26 | 2024/25 |
|---|---|---|
| Savings starting rate – 0% | Up to £5,000 | Up to £5,000 |
| Basic rate – 20% | £12,571–£50,270 | £12,571–£50,270 |
| Higher rate – 40% | £50,271–£125,140 | £50,271–£125,140 |
| Additional rate – 45% | Above £125,140 | Above £125,140 |
Rates shown apply to England, Wales and Northern Ireland; Scotland sets its own income tax bands.
Personal reliefs and allowances
| Relief | 2025/26 | 2024/25 |
|---|---|---|
| Personal Allowance* | £12,570 | £12,570 |
| Married couple's allowance – minimum amount* | £4,360 | £4,280 |
| Rent-a-room relief | £7,500 | £7,500 |
| High Income Child Benefit Charge** | Over £60,000 | Over £60,000 |
*Personal Allowance is reduced by £1 for every £2 of adjusted net income over £100,000; the married couple's allowance will not reduce below £4,360 for 2025/26.
**The High Income Child Benefit Charge is 1% of the benefit for each £200 of income above £60,000, up to a maximum of 100%.
Dividend and savings tax
| Dividend and Savings | 2025/26 | 2024/25 |
|---|---|---|
| Dividend Allowance | £500 | £500 |
| Dividend basic rate | 8.75% | 8.75% |
| Dividend higher rate | 33.75% | 33.75% |
| Dividend additional rate | 39.35% | 39.35% |
Capital Gains Tax
| Capital Gains Tax | 2025/26 | 2024/25 |
|---|---|---|
| Annual exempt amount – individuals | £3,000 | £3,000 |
| Standard rate taxpayers – residential | 18% | 18% |
| Standard rate taxpayers – other assets | 18% | 10% |
| Higher rate taxpayers/trustees – residential | 24% | 24% |
| Higher rate taxpayers/trustees – other assets | 24% | 20% |
VAT, pensions, inheritance tax and ISAs
| Rates & thresholds | 2025/26 | 2024/25 |
|---|---|---|
| VAT – standard rate | 20% | 20% |
| VAT – annual registration limit | £90,000 | £90,000 |
| Pensions – maximum annual contribution | £60,000 | £60,000 |
| Normal minimum pension age | 55 | 55 |
| Inheritance Tax – nil rate band for individuals | £325,000 | £325,000 |
| Business Property Relief – shares in unquoted companies (incl. AIM) | 100% | 100% |
| ISA limit | £20,000 | £20,000 |
EIS, SEIS and VCT reliefs
| Reliefs & incentives | 2025/26 relief | Investment (max) |
|---|---|---|
| Venture Capital Trust (VCT) | 30% | £200,000 |
| Enterprise Investment Scheme (EIS) | 30% | £2,000,000 |
| Seed Enterprise Investment Scheme (SEIS) | 50% | £200,000 |
R&D tax relief rates
| Research and Development (R&D) | 2025/26 |
|---|---|
| R&D SME payable credit | 10% |
| R&D enhanced qualifying expenditure | 186% |
| R&D-intensive SME payable credit | 14.5% |
| Enhanced qualifying expenditure for R&D-intensive SME* | 186% |
*To qualify as an R&D-intensive SME, at least 30% of total expenditure must be qualifying R&D activity.
Mileage allowance and National Living Wage
| Mileage allowance | Cars & vans | Motor cycles | Bicycles |
|---|---|---|---|
| Up to 10,000 miles | 45p | 24p | 20p |
| Over 10,000 miles | 25p | 24p | 20p |
| National Living Wage | 2025/26 | 2024/25 |
|---|---|---|
| Aged 21 and over | £12.21 p.h. | £11.44 p.h. |
SDLT rates and regional equivalents
| SDLT rate | Residential property – purchase price | Non-residential and mixed-use property |
|---|---|---|
| Zero | Up to £125,000 | £0–£150,000 |
| 2% | £125,001–£250,000 | £150,001–£250,000 |
| 5% | £250,001–£925,000 | Over £250,000 |
| 10% | £925,001–£1,500,000 | – |
| 12% | Over £1,500,000 | – |
First-time buyers pay 0% on the first £300,000 for properties up to £500,000.
Need help applying these rates to your business?
Our team can help you plan around this year's Corporation Tax, dividend, VAT and R&D rates, and flag which changes affect you before they cost you money.