Capital Gains Tax Annual exempt amount Individuals, estates
2026/27 £3,000
2025/26 £3,000
Most trusts
1,500
1,500
Tax rate Individual up to Basic Rate Limit (BRL) Individual above BRL, trusts and estates Business Asset Disposal Relief (BADR)
18% 24% 18%
18% 24% 14%
BADR is available on qualifying gains up to a lifetime limit of £1 million. Corporation Tax Year to 31.3.2027
31.3.2026
Main rate (profits above £250,000) Small profits rate (profits up to £50,000)
25% 19%
25% 19%
Marginal relief band (MRB) £50k – £250k Fraction in MRB (effective marginal rate) 3/200 (26.5%) 3/200 (26.5%) Research and development relief Accounting periods beginning on or after 1.4.2024 R&D Expenditure Credit (RDEC) scheme * 20% R&D-intensive SMEs enhanced expenditure scheme ** 86% *Taxable expenditure credit for qualifying R&D. **Additional deduction for qualifying R&D. £50k – £250k R&D-intensive companies are those that have R&D expenditure constituting at least 30% of total tax-deductible P&L expenses plus capitalised R&D costs. Loss-making R&D- intensive companies can claim a payable credit rate of 14.5% from HMRC in exchange for their losses (capped at £20,000 plus 3 x [PAYE & NIC]). Main capital allowances Plant and machinery allowances Year to Year to Companies only 31.3.27 31.3.26 – First-year allowance (main pool) 100% 100% – First-year allowance (special rate pool) 50% 50% Annual Investment Allowance (AIA) – Expenditure of up to £1m 100% 100% New electric vans 100% 100% Writing down allowance: main pool 14% 18% Writing down allowance: special rate pool 6% 6% Motor cars purchased CO 2 (g/km) New cars only Nil 100% 100% In general pool up to 50 14% 18% In special rate pool above 50 6% 6% Structures and buildings allowance Fixed deduction per annum 3% 3% For income tax businesses, capital allowance rates are set for periods to 5 April, rather than 31 March.
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