Reference
Reference: UK Tax Rates 2025/26
All the headline UK tax rates and bands for 2025/26 in one place — Income Tax, NI, Corporation Tax, VAT, dividends, CGT.
Quick answers
What are the UK Income Tax rates for 2025/26?
Personal allowance £12,570 (0%), basic rate 20% to £50,270, higher rate 40% to £125,140, additional rate 45% above. Scotland has different bands and rates ranging from 19% (starter) up to 48% (top). Personal allowance tapers above £100,000.
What is the VAT registration threshold in 2025/26?
The VAT registration threshold for 2025/26 is £90,000 of taxable turnover in any rolling 12-month period. The deregistration threshold is £88,000. The standard VAT rate is 20%, with reduced (5%) and zero rates for specific goods and services.
What is the Corporation Tax rate in 2025/26?
Corporation Tax is 19% for profits up to £50,000 (small profits rate), 25% for profits of £250,000 or more (main rate), with marginal relief tapering between the two. Instalment payment rules use adjusted thresholds and exceptions, including associated companies and short periods.
UK Tax Rates 2025/26
A quick-reference of the headline rates for the 2025/26 UK tax year (6 April 2025 – 5 April 2026).
Income Tax (England, Wales, Northern Ireland)
| Band | Threshold | Rate |
|---|---|---|
| Personal allowance | £0 – £12,570 | 0% |
| Basic | £12,571 – £50,270 | 20% |
| Higher | £50,271 – £125,140 | 40% |
| Additional | £125,141+ | 45% |
Personal allowance is reduced by £1 for every £2 of income above £100,000 — fully tapered by £125,140.
Income Tax (Scotland)
| Band | Threshold | Rate |
|---|---|---|
| Starter | £12,571 – £15,397 | 19% |
| Basic | £15,398 – £27,491 | 20% |
| Intermediate | £27,492 – £43,662 | 21% |
| Higher | £43,663 – £75,000 | 42% |
| Advanced | £75,001 – £125,140 | 45% |
| Top | £125,141+ | 48% |
National Insurance
Class 1 (employees)
- 8% on £12,571 – £50,270
- 2% above £50,270
Class 1 employer
- 15% above £5,000 per employee
- Employment Allowance: £10,500
Class 2 (self-employed)
- Voluntary, £3.50/week
Class 4 (self-employed)
- 6% on £12,571 – £50,270
- 2% above £50,270
Corporation Tax
| Profits | Rate |
|---|---|
| ≤ £50,000 | 19% |
| £50,001 – £250,000 | Marginal relief (eff. 19–25%) |
| ≥ £250,000 | 25% |
Marginal relief fraction: 3/200.
VAT
- Registration threshold: £90,000
- Deregistration threshold: £88,000
- Standard rate: 20%
- Reduced rate: 5%
- Zero rate: 0%
Dividend Tax
- Allowance: £500
- Basic-rate band: 8.75%
- Higher-rate band: 33.75%
- Additional-rate band: 39.35%
Capital Gains Tax
- Annual exempt amount: £3,000
- Basic-rate taxpayer: 18% (residential property and most other assets)
- Higher-rate taxpayer: 24% (residential property and most other assets)
- Business Asset Disposal Relief: 14% (rising to 18% from April 2026), £1m lifetime limit.
Carried interest was charged at 32% in 2025/26; from 6 April 2026 it falls under Income Tax and National Insurance rules. See HMRC CGT rates.
Inheritance Tax
- Nil-rate band: £325,000
- Residence nil-rate band: £175,000
- Rate above threshold: 40% (36% if 10%+ left to charity)
Pensions
- Annual allowance: £60,000 (tapered for high earners)
- Money purchase annual allowance: £10,000
- Lifetime allowance: abolished — replaced by lump-sum allowances.
State Pension
- Full new State Pension: £230.25/week (£11,973 a year).
This is general guidance for the 2025/26 UK tax year and is not personal tax advice. Always check the latest figures on GOV.UK or speak to a qualified accountant for your situation.
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