Tax Rates & Allowances 2026/27

Key UK tax rates, allowances and thresholds at a glance.

2026/27 Tax Year

Tax Rates & Allowances

The figures below are provided for general guidance only and may change following Budget announcements. Always seek professional advice for your specific circumstances.

Income Tax (England, Wales & NI)

Personal allowance	£12,570
Basic rate (20%)	£12,571 – £50,270
Higher rate (40%)	£50,271 – £125,140
Additional rate (45%)	Over £125,140
Personal allowance taper	£1 lost per £2 over £100,000

National Insurance

Class 1 primary threshold	£12,570
Employee rate (main)	8%
Employer rate	15%
Class 2 (self-employed)	Voluntary
Class 4 (self-employed)	6% / 2%

Corporation Tax

Main rate (profits over £250,000)	25%
Small profits rate (under £50,000)	19%
Marginal relief	£50,000 – £250,000

Capital Gains Tax

Annual exempt amount	£3,000
Basic rate taxpayer	18%
Higher rate taxpayer	24%
Business Asset Disposal Relief	14%

Dividends

Dividend allowance	£500
Basic rate	8.75%
Higher rate	33.75%
Additional rate	39.35%

VAT

Standard rate	20%
Reduced rate	5%
Zero rate	0%
Registration threshold	£90,000
Deregistration threshold	£88,000

Inheritance Tax

Nil-rate band	£325,000
Residence nil-rate band	£175,000
Rate on death	40%
Reduced rate (10%+ to charity)	36%

Need Help Applying These to Your Situation?

Our team can explain exactly how these rates affect you and how to plan efficiently.

Book a Free Consultation Call 020 8432 3000