Income Tax Rates and bands (other than savings and dividend income) 2025/26 2024/25 Band £ Rate % Band £
Inheritance Tax Death rate Lifetime rate
Chargeable transfers 2025/26 and 2024/25
Nil
Nil
0 - £325,000 (nil rate band)
Rate %
40% 20% Over £325,000 A further nil rate band of £175,000 may be available in relation to current or former residences.
0 - 37,700
20 0 - 37,700
20 40
37,701 - 125,140
40 45
37,701 - 125,140
Over 125,140 45 Income tax rates in Scotland and Wales on income other than savings and dividend income have been devolved. Savings income 2025/26 and 2024/25 Savings allowance basic rate £1,000 Savings allowance higher rate £500 A starting rate of 0% may be available unless taxable non-savings income exceeds £5,000. Dividend income 2025/26 2024/25 Dividend allowance £500 £500 Dividend ordinary rate 8.75% 8.75% Dividend upper rate 33.75% 33.75% Dividend additional rate 39.35% 39.35% Income Tax Reliefs 2025/26 2024/25 Personal allowance £12,570 £12,570 Personal allowance income limit £100,000 £100,000 Marriage allowance £1,260 £1,260 Married couple’s allowance £11,270 £11,080 - minimum amount £4,360 £4,280 - income limit £37,700 £37,000 Blind person’s allowance £3,130 £3,070 Pensions 2025/26 2024/25 Lump sum allowance £268,275 £268,275 Lump sum and death benefit allowance £1,073,100 £1,073,100 Annual Allowance limit £60,000 £60,000 Money Purchase Annual Allowance £10,000 £10,000 Over 125,140
Devolved Income Tax Scotland rates and bands 2025/26
2024/25
Band £
Rate % Band £
Rate %
tbc tbc tbc tbc tbc tbc
tbc 0 - 2,306
19 20 21 42 45 48
tbc 2,307 - 13,991 tbc 13,992 - 31,092 tbc 31,093 - 62,430 tbc 62,431 - 125,140 tbc Over 125,140
Wales rates and bands 2025/26
2024/25
Band £
Rate % Band £
Rate %
0 - 37,700
tbc 0 - 37,700
20 40 45
37,701 - 125,140
tbc 37,701 - 125,140 tbc Over 125,140
Over 125,140
National Insurance 2025/26 Class 1 (employed) rates Employee
Employer
Earnings per week
% Earnings per week
%
Up to £242
Nil Up to £96 8 Over £96
Nil
£242.01 - £967
15
Over £967 2 Entitlement to contribution-based benefits for employees retained for earnings between £125 and £242 per week. The employer rate is 0% for certain military veterans, employees under 21 and apprentices under 25 on earnings up to £967 per week. Class 1A (employers) 15% on employee taxable benefits Class 1B (employers) 15% on PAYE Settlement Agreements Class 2 (self-employed) nil (£3.50 per week where those Class 3 (voluntary) flat rate per week £17.75 Class 4 (self-employed) 6% on profits between £12,570 and £50,270 plus 2% on profits over £50,270 with profits below £6,845 wish to make a voluntary contribution)
Corporation Tax Years to 31.3.25 and 31.3.26
Profits band £
Rate %
Small profits rate
0 - 50,000
19
Marginal rate
50,001 - 250,000 26.5
Main rate
Over 250,000
25
Marginal relief fraction 3/200 Profits limits are reduced for a company with associated companies. Different rates apply for ring-fenced (broadly oil industry) profit.
Rates & Allowances
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