Current Rates

Tax Rates, Bands & Allowances

You will find below the most common types of tax rates, bands and allowances for the 2025/26 and 2026/27 tax years.

Since 6 April 2018 separate rates of Income Tax apply in Scotland.

Income Tax

Allowances

2026/27
2025/26
Personal Allowance
£12,570
£12,570
Minimum Married Couples Allowance – people born before 6 April 1935
£4,530
£4,360
Maximum Married Couples Allowance – people born before 6 April 1935
£11,700
£11,270
Income Limit for Personal Allowances
£100,000
£100,000
Blind Persons Allowance
£3,250
£3,130
Marriage Allowance
£1,260
£1,260
Dividend Allowance
£500
£1,000
Savings Allowance (Basic Rate Taxpayers)
£1,000
£1,000
Savings Allowance (Higher Rate Taxpayers)
£500
£500

Income Tax

Rates and Bands

2026/27
2025/26
Basic Rate
20%
20%
Higher Rate
40%
40%
Additional Rate
45%
45%
Upper Limit for Basic Rate
£50,270
£50,270
Upper Limit for Higher Rate
£125,140
£125,140

National Insurance

Employees & Employers

2026/27
2025/26
Weekly Lower Earnings Limit (LEL)
£129
£125
Employers Threshold (ERT)
£96
£96
Employees Threshold (EET)
£242
£242
Upper Earnings Limit (UEL)
£967
£967
Employer Rate – Below ERT
0.00%
0.00%
Employer Rate – Above ERT
15.00%
13.80%
Employee Rate – Below EET
0.00%
0.00%
Employee Rate – EET to UEL
8.00%
8.00%
Employee Rate – Above UEL
2.00%
2.00%

National Insurance

Self Employed

2026/27
2025/26
Weekly Class 2 Contribution Rate
£3.65
£3.50
Class 2 Small Earnings Exception per year
£7,105
£6,845
Class 4 Lower Profits Limit (LPL)
£12,570
£12,570
Class 4 Upper Profits Limit (UPL)
£50,270
£50,270
Class 4 Rate LPL to UPL
6.00%
6.00%
Class 4 Rate above UPL
2.00%
2.00%

Tax Rates

Capital Gains & Property

2026/27
2025/26
Capital Gains Annual Allowance
£3,000
£3,000
Capital Gains Tax Rate for Basic Rate Taxpayers
18.0%
18.0%
Capital Gains Tax Rate for Higher Rate Taxpayers
24.0%
24.0%
Rent a Room Allowance
£7,500
£7,500

Tax Rates

Business Taxes

2026/27
2025/26
Value Added Tax (VAT) Registration Threshold
£90,000
£90,000
Corporation Tax Rate for Small Companies
19%
19%