Income Tax (continued) New UK residents
From 2025/26, those who are in their first 4 years of UK residence, having been non-resident for the previous 10 years, can claim to have most types of foreign income exempt from UK tax for the year. A similar claim is available for foreign capital gains. In prior years, ‘remittance basis’ was available for UK residents who were neither UK- domiciled nor deemed domiciled. If claimed, foreign income or gains were only taxable in the UK if remitted here. Remittance basis users with unremitted income or gains can use the Temporary Repatriation Facility in 2025/26 to 2027/28. This allows them to be taxed at a favourable rate (12% or, in 2027/28, 15%) on designated income or gains; otherwise, their unremitted income and gains become taxable at normal rates when remitted to the UK. Pensions Registered Pensions 2026/27 2025/26 Annual Allowance (AA)* £60,000 £60,000 Annual relievable pension inputs are the higher of earnings (capped at AA) or £3,600. *Usually tapered down, to a minimum of £10,000, when adjusted income exceeds £260,000. The maximum tax-free pension lump sum is £268,275, unless a higher amount is “protected”. State pension (per week) 2026/27 2025/26 Old state pension £184.90 £176.45 New state pension 241.30 230.25
Annual investment limits Individual Savings Account (ISA)
2026/27 £20,000
2025/26 £20,000
– Overall limit – Lifetime ISA Junior ISA EIS – 30% relief
4,000 9,000
4,000 9,000
2,000,000 200,000
2,000,000 200,000
Seed EIS (SEIS) – 50% relief Venture Capital Trust (VCT) – 20% (2025/26: 30%) relief
200,000
200,000
National Insurance Contributions Class 1 (Employees)
Employee
Employer
Main NICs rate No NICs on first
8%
15%
£242pw £967pw £967pw
£96pw no limit
Main rate charged up to* 2% rate on earnings above
N/A
Employment allowance per business** £10,500 *Nil rate of employer NICs on earnings up to £967pw for employees aged under 21, apprentices aged under 25 and ex-armed forces personnel in their first twelve months of civilian employment. **Some businesses do not qualify, including certain sole director companies. N/A Employer contributions (at 15%) are also due on most taxable benefits (Class 1A) and on tax paid on an employee’s behalf under a PAYE settlement agreement (Class 1B). Class 2 (Self-employed) Flat rate per week if profits below £7,105 (voluntary) £3.65
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