HomeUK Tax Rates Reference 2025/26
Income Tax rates (England, Wales, Northern Ireland)
| Band | Income range | Rate |
|---|
| Personal Allowance | £0 - £12,570 | 0% |
| Basic rate | £12,571 - £50,270 | 20% |
| Higher rate | £50,271 - £125,140 | 40% |
| Additional rate | £125,141+ | 45% |
Personal Allowance tapers by £1 for every £2 of income above £100,000 — reaches zero at £125,140. Scotland has different bands.
National Insurance rates
Self-employed (Class 4)
| Profits £12,571 - £50,270 | 6% |
| Profits above £50,270 | 2% |
Employed (Class 1)
| Earnings £242 - £967/week | 8% |
| Earnings above £967/week | 2% |
Class 2 NI is voluntary from April 2024 for those with profits below £6,725.
Corporation Tax
| Profits under £50,000 | 19% (small profits rate) |
| Profits £50,001 - £250,000 | Marginal relief (effective ~26.5% on the marginal band) |
| Profits £250,001+ | 25% (main rate) |
Dividend tax
| Dividend Allowance | £500 (2025/26) |
| Basic-rate band | 8.75% |
| Higher-rate band | 33.75% |
| Additional-rate band | 39.35% |
Capital Gains Tax
| Annual Exempt Amount | £3,000 (2025/26) |
| Basic-rate taxpayer (residential property) | 18% |
| Basic-rate taxpayer (other assets) | 18% (2024/25+) |
| Higher/additional-rate (residential) | 24% |
| Higher/additional-rate (other assets) | 24% |
| Business Asset Disposal Relief | 10% (up to £1m lifetime) |
VAT
| Standard rate | 20% |
| Reduced rate | 5% |
| Zero rate | 0% |
| Registration threshold | £90,000 (rolling 12 months) |
| Deregistration threshold | £88,000 |