The figures behind the decisions
Tax rates.
Made clearer.
Keep the numbers you need within reach. Choose a topic for current rates, the conditions that matter and a direct route to the official guidance.
England, Wales & Northern Ireland
Income Tax
Annual income bands for someone entitled to the standard Personal Allowance. These are marginal rates: each rate applies to the income within its band.
| Annual income band | Rate |
|---|---|
| Up to £12,570 | 0% |
| £12,571 to £50,270 | 20% |
| £50,271 to £125,140 | 40% |
| Over £125,140 | 45% |
The standard Personal Allowance is £12,570. It falls by £1 for every £2 of adjusted net income above £100,000 and is zero at £125,140. This taper changes the effective tax rate in that range.
Savings and dividends have separate rules. Reliefs and your tax code can change the calculation.
Scottish taxpayers
Scottish Income Tax
Scottish rates apply to non-savings, non-dividend income. The bands below assume the standard Personal Allowance, which tapers at higher incomes.
| Annual income band | Rate |
|---|---|
| Up to £12,570 | 0% |
| £12,571 to £16,537 | 19% |
| £16,538 to £29,526 | 20% |
| £29,527 to £43,662 | 21% |
| £43,663 to £75,000 | 42% |
| £75,001 to £125,140 | 45% |
| Over £125,140 | 48% |
Scottish status is determined by the residence rules, not simply the location of your employer. UK rules still apply to savings and dividend income.
UK · 2026/27
Dividends & savings
Allowances can reduce the tax due, but income covered by them can still use part of your tax bands.
| Allowance or rate | 2026/27 |
|---|---|
| Dividend allowance | £500 |
| Dividend ordinary / upper / additional rates | 10.75% / 35.75% / 39.35% |
| Personal Savings Allowance: basic-rate taxpayer | £1,000 |
| Personal Savings Allowance: higher-rate taxpayer | £500 |
| Personal Savings Allowance: additional-rate taxpayer | £0 |
| Starting rate for savings | Up to £5,000 at 0% |
The starting-rate savings band reduces as other income exceeds the Personal Allowance. The higher dividend ordinary and upper rates took effect on 6 April 2026.
These figures are for 2026/27. Do not substitute announced future savings rates into a current-year calculation.
UK · standard working-age rates
National Insurance
The most commonly used employee, employer and self-employed rates. Employee contributions are normally calculated for each pay period, not by applying an annual average.
| Contribution | Rate or threshold |
|---|---|
| Employee Class 1, category A: primary threshold | £12,570 a year equivalent |
| Employee: above primary threshold to £50,270 | 8% |
| Employee: above £50,270 | 2% |
| Employer Class 1, category A | 15% above £5,000 a year equivalent |
| Employment Allowance, eligible employers | Up to £10,500 |
| Self-employed Class 4: profits over £12,570 to £50,270 | 6% |
| Self-employed Class 4: profits over £50,270 | 2% |
| Class 2 small profits threshold | £7,105 |
| Voluntary Class 2 below the small profits threshold | £3.65 a week |
At or above £7,105 of self-employed profit, Class 2 is normally treated as paid without a Class 2 charge. Below this, eligible people can choose voluntary contributions.
Different category letters, pension age, director rules and employer reliefs can change the result. Employment Allowance eligibility is not automatic.
UK · non-ring-fence profits
Corporation Tax
For a standard twelve-month period, before adjustments for associated companies and eligibility restrictions.
| Profit level | Rate |
|---|---|
| £50,000 or less: small profits rate | 19% |
| Between £50,000 and £250,000 | 25%, potentially reduced by Marginal Relief |
| Over £250,000: main rate | 25% |
The profit limits reduce for short accounting periods and associated companies. Not all companies qualify for the small profits rate or Marginal Relief.
Business investment
Capital allowances
Relief depends on the asset, purchaser, expenditure date and accounting period. The allowance is a deduction from taxable profits, not a cash repayment of the purchase price.
| Allowance | Current position |
|---|---|
| Annual Investment Allowance | Up to £1 million per twelve-month period |
| Full expensing: qualifying companies and assets | 100% |
| Special-rate first-year allowance: qualifying companies and assets | 50% |
| New first-year allowance: qualifying expenditure from January 2026 | 40% |
| Main-pool writing down allowance | 14% from April 2026 |
| Special-pool writing down allowance | 6% |
The main writing down rate changed on 1 April 2026 for Corporation Tax and 6 April 2026 for Income Tax. A straddling period needs a hybrid rate.
AIA generally excludes cars. Full expensing and the 50% allowance require qualifying new, unused assets; check all restrictions before claiming.
UK · current rates and thresholds
VAT
Use taxable turnover, including zero-rated supplies, when checking registration. Exempt supplies are different from zero-rated supplies.
| Rate or threshold | Amount |
|---|---|
| Standard rate | 20% |
| Reduced rate | 5% |
| Zero rate | 0% |
| Compulsory registration threshold | Over £90,000 taxable turnover |
| Voluntary deregistration threshold | Below £88,000 |
Check turnover over the rolling previous twelve months, and whether you expect to exceed the threshold in the next thirty days alone. Special rules apply to overseas businesses and some cross-border transactions.
Individuals · 2026/27
Capital Gains Tax
A gain is not the same as sale proceeds. Work out allowable costs, losses, exemptions and taxable income before applying a rate.
| Allowance or rate | 2026/27 |
|---|---|
| Individual annual exempt amount | £3,000 |
| General individual rates | 18% / 24% |
| Qualifying Business Asset Disposal Relief gains | 18% |
| Qualifying Investors’ Relief gains | 18% |
The lower rate depends on the unused basic-rate band. Relief conditions and lifetime limits apply. Claims under the foreign income and gains regime or Overseas Workday Relief can remove the annual exemption.
Carried interest has separate rules from 6 April 2026; do not use this summary to calculate it.
UK · estates and lifetime planning
Inheritance Tax
These are the main estate thresholds and lifetime gift exemptions. Eligibility, ownership, residence and reliefs can materially change the result.
| Threshold, exemption or rate | Current position |
|---|---|
| Standard nil-rate band | £325,000 |
| Potential total threshold with qualifying home allowance | Up to £500,000 |
| Standard rate above available thresholds | 40% |
| Qualifying charitable giving reduced rate | 36% |
| Annual gift exemption, total across recipients | £3,000 |
| Small gift exemption, per recipient per tax year | £250 |
| Wedding or civil partnership gift: child | £5,000 |
| Wedding or civil partnership gift: grandchild or great-grandchild | £2,500 |
| Wedding or civil partnership gift: another person | £1,000 |
| Taxable lifetime transfer into most trusts, trustees paying | 20% above the available threshold |
The home allowance depends on leaving a qualifying home to direct descendants and reduces for estates above £2 million. Transfers between spouses or civil partners and unused allowances have their own rules.
Unused annual gift exemption can carry forward one tax year. The small-gift exemption cannot be combined with another exemption for that recipient. Regular gifts from surplus income may qualify separately if the conditions are met.
For taxable gifts before death, taper rates are 40% within three years, then 32%, 24%, 16% and 8% for three–four, four–five, five–six and six–seven years respectively. Taper reduces tax on chargeable gifts, not their value; it does not create an extra nil-rate band. Retaining a benefit from a gift can keep it in your estate.
Trust calculations depend on earlier transfers and available reliefs. If the settlor pays the tax, grossing up can increase the charge; later death, anniversary and exit charges need separate consideration. Business and agricultural relief require assessment under the rules at the transfer date.
UK · 2026/27
Pension allowances
The annual allowance measures pension saving, including employer contributions and defined-benefit growth. It is separate from the limit on tax relief for personal contributions.
| Allowance or test | Current position |
|---|---|
| Standard annual allowance | £60,000 |
| Minimum tapered annual allowance | £10,000 |
| Money purchase annual allowance, where triggered | £10,000 |
| Taper threshold-income test | Over £200,000 |
| Taper adjusted-income test | Over £260,000 |
| Potential carry forward | Unused allowance from the previous 3 tax years |
Both income tests must be met for the high-income taper. Flexible pension access can trigger a lower money purchase annual allowance. Check the official guidance before contributing or withdrawing.
UK · 2026/27
Individual Savings Accounts
The ISA allowance is an annual contribution limit shared across eligible adult ISA types.
| Allowance | 2026/27 |
|---|---|
| Adult ISA subscription limit | £20,000 |
| Junior ISA annual limit | £9,000 |
| Lifetime ISA annual contribution limit, within adult allowance | £4,000 |
| Lifetime ISA government bonus | 25%, up to £1,000 a year |
| Existing Help to Buy ISA: monthly contribution limit | £200 |
| Help to Buy ISA: qualifying first-home bonus | 25%, up to £3,000 |
Lifetime ISAs have a separate limit within the overall allowance and conditions for opening, paying in and withdrawing. Junior ISAs have their own rules. Follow the official ISA guide for eligibility and transfers.
Help to Buy ISAs are closed to new accounts. Existing holders can contribute until November 2029 and claim the bonus until November 2030. The qualifying purchase price is capped at £250,000, or £450,000 in London. Contributions count towards the overall ISA allowance.
UK · 2026/27
Child Benefit
Child Benefit is paid per child. A separate tax charge can apply where an individual’s adjusted net income exceeds the relevant threshold.
| Payment or charge | 2026/27 |
|---|---|
| Eldest or only child | £27.05 a week |
| Each additional child | £17.90 a week |
| High Income Child Benefit Charge starts | Adjusted net income above £60,000 |
| Full benefit recovered by the charge | Adjusted net income of £80,000 or more |
Check the High Income Child Benefit Charge separately. Keeping a claim while opting out of payments may help protect National Insurance credits where eligible.
Individuals · UK
Property & trading allowances
These allowances can simplify small amounts of income. They are generally alternatives to deducting actual expenses, with exclusions.
| Allowance | Annual amount |
|---|---|
| Trading allowance | Up to £1,000 |
| Property allowance | Up to £1,000 |
| Rent a Room: qualifying furnished accommodation in your home | £7,500 |
| Rent a Room where income is shared | £3,750 |
The trading and property tests use gross income before expenses. You may still need to register or file a return, and some connected-party income is excluded.
Do not combine the property allowance with Rent a Room relief or claim actual expenses against the same income.
UK · subject to eligibility
Tax reliefs for individuals
Reliefs depend on circumstances. These common allowances are a starting point for a conversation with HCA.
| Relief | Current position |
|---|---|
| Marriage Allowance: transferable allowance | £1,260 |
| Marriage Allowance: maximum annual tax saving | £252 |
| Blind Person’s Allowance, 2026/27 | £3,250 |
| EIS Income Tax relief | 30% of qualifying investment |
| EIS annual investment limit for relief | £1 million; up to £2 million with qualifying knowledge-intensive investment |
| SEIS Income Tax relief / annual investment limit | 50% / £200,000 |
| VCT Income Tax relief / annual investment limit | 20% / £200,000 |
EIS, SEIS and VCT relief has investor, company and minimum holding-period conditions and is limited by your Income Tax liability. The higher EIS limit requires at least £1 million in knowledge-intensive companies. VCT relief reduced to 20% from 6 April 2026. Social Investment Tax Relief is closed to investments made from 6 April 2023.
Marriage Allowance requires an eligible married couple or civil partnership and qualifying tax bands. It differs from Married Couple’s Allowance.
Employee working-from-home tax relief is no longer available for 2026/27; eligible claims for earlier years have separate rules. Other qualifying job expenses may still be claimable.
UK · from 1 April 2026
Minimum wage
Check the worker’s age and apprenticeship status, and the pay reference period in which a new rate becomes applicable.
| Worker | Minimum hourly rate |
|---|---|
| Age 21 and over | £12.71 |
| Age 18 to 20 | £10.85 |
| Under 18, above school leaving age | £8.00 |
| Apprentice rate, where eligible | £8.00 |
The apprentice rate applies to apprentices under 19, or aged 19 or over in the first year of their apprenticeship. Otherwise the age-related rate applies.
UK · 2026/27
Statutory pay
Eligibility, average weekly earnings and qualifying dates must be checked before processing payroll.
| Payment | Weekly amount |
|---|---|
| Statutory Sick Pay | Lower of £123.25 or 80% of average weekly earnings |
| Maternity / adoption: first 6 weeks | 90% of average weekly earnings |
| Maternity / adoption: remaining paid weeks | Lower of £194.32 or 90% of average weekly earnings |
| Paternity / shared parental / parental bereavement / neonatal care | Lower of £194.32 or 90% of average weekly earnings |
Maternity rates apply from 5 April 2026; the other listed 2026/27 rates apply from 6 April. SSP applies from the first qualifying day under the current rules.
Employee-owned vehicles · 2026/27
Vehicles & business mileage
Approved mileage rates for qualifying business journeys. Ordinary commuting is not business travel.
| Vehicle / mileage | Income Tax approved amount |
|---|---|
| Car: first 10,000 business miles | 55p per mile |
| Car: subsequent business miles | 25p per mile |
| Motorcycle | 24p per mile |
| Bicycle | 20p per mile |
HMRC’s 2026/27 table was updated in June 2026 to show 55p for the first 10,000 car miles. The National Insurance mileage treatment differs.
Company-car advisory fuel and electricity rates are separate and change during the year. Use the dated official tables for those journeys and benefit calculations.
Automatic enrolment · 2026/27
Workplace pension contributions
For schemes using the qualifying-earnings basis. Assess each worker’s eligibility and the scheme’s pensionable-pay definition.
| Threshold or contribution | 2026/27 |
|---|---|
| Annual automatic-enrolment earnings trigger | £10,000 |
| Annual qualifying-earnings band | £6,240 to £50,270 |
| Minimum total contribution on qualifying earnings | 8% |
| Minimum employer contribution on qualifying earnings | 3% |
Age, worker status and pay-period rules matter as well as earnings. Opt-in and joining rights can apply below the automatic-enrolment trigger.
The balance to the minimum total is usually met by the worker, including tax relief where applicable. Other certified scheme bases can use different contribution rules.
Benefits in kind · 2026/27
Company cars, vans & fuel
These figures help establish the taxable benefit. The benefit value is not the amount of personal tax payable.
| Benefit | 2026/27 basis |
|---|---|
| Zero-emission company car | 4% appropriate percentage |
| Other company cars | Percentage depends on CO₂, electric range and fuel type |
| Company-car fuel benefit multiplier | £29,200 |
| Standard van benefit for private use | £4,170 |
| Standard van fuel benefit for private use | £798 |
| Zero-emission van benefit | £0 |
A car benefit generally starts with its taxable list price, including relevant accessories, multiplied by the appropriate percentage. Use HMRC’s full table for hybrids, petrol and diesel cars.
Car fuel benefit generally uses the same appropriate percentage with the fuel multiplier. Availability, employee payments, private-use conditions and salary-sacrifice rules may alter benefits.
UK payroll · 2026/27
Student & postgraduate loans
Repayments depend on the loan plan and earnings in the pay period. The figures below are annual equivalents.
| Loan plan | Annual threshold |
|---|---|
| Plan 1 | £26,900 |
| Plan 2 | £29,385 |
| Plan 4 | £33,795 |
| Plan 5 | £25,000 |
| Postgraduate loan | £21,000 |
Student loan deductions are 9% above the relevant threshold; postgraduate deductions are 6%. More than one deduction can apply.
Residential property · England & Northern Ireland
Stamp Duty Land Tax
Standard residential rates on slices of the purchase price, before any relief or higher-rate charge.
| Slice of purchase price | Rate |
|---|---|
| Up to £125,000 | 0% |
| Over £125,000 to £250,000 | 2% |
| Over £250,000 to £925,000 | 5% |
| Over £925,000 to £1.5 million | 10% |
| Over £1.5 million | 12% |
Additional dwellings normally add 5 percentage points. Non-resident purchasers and certain company purchases can face different charges.
Eligible first-time buyers pay no SDLT on the first £300,000 and 5% on the balance up to £500,000. No first-time buyer relief applies if the price exceeds £500,000.
Residential property · Scotland
Land & Buildings Transaction Tax
Standard LBTT rates on slices of the purchase price. Scottish rules are separate from SDLT.
| Slice of purchase price | Rate |
|---|---|
| Up to £145,000 | 0% |
| Over £145,000 to £250,000 | 2% |
| Over £250,000 to £325,000 | 5% |
| Over £325,000 to £750,000 | 10% |
| Over £750,000 | 12% |
Eligible first-time buyer relief increases the nil-rate band to £175,000. Additional Dwelling Supplement may also apply; check the current rules separately.
Residential property · Wales
Land Transaction Tax
Main residential rates on slices of the purchase price. Higher residential rates have different bands as well as different percentages.
| Slice of purchase price | Main rate |
|---|---|
| Up to £225,000 | 0% |
| Over £225,000 to £400,000 | 6% |
| Over £400,000 to £750,000 | 7.5% |
| Over £750,000 to £1.5 million | 10% |
| Over £1.5 million | 12% |
For additional dwellings, company purchases and other higher-rate cases, use the separate higher residential table at the official source. Do not add a flat supplement to the main-rate bands.
Non-residential, mixed-use and lease transactions need their own calculations in all three jurisdictions.
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Contains public sector information licensed under the Open Government Licence v3.0. Sources are maintained by HMRC, Revenue Scotland and the Welsh Revenue Authority.