United Kingdom rates and paperwork
Tax year 6 April 2025 to 5 April 2026 (2025/26).
Figures as published by HM Revenue and Customs for 2025/26. Check gov.uk before you file, and remember Scotland sets its own income tax bands.
Rates, allowances and thresholds
Income tax, England, Wales and Northern Ireland
Applied to income above your personal allowance.
- Personal allowance
- £12,570
- Basic rate
- 20% on the first £37,700 of taxable income
- Higher rate
- 40% up to £125,140
- Additional rate
- 45% above £125,140
Drops by £1 for every £2 of income over £100,000, gone at £125,140
Income tax, Scotland
- Starter rate
- 19% on the first £2,827 of taxable income
- Basic rate
- 20% to £14,921
- Intermediate rate
- 21% to £31,092
- Higher rate
- 42% to £62,430
- Advanced rate
- 45% to £125,140
- Top rate
- 48% above £125,140
National Insurance
- Employee, Class 1
- 8% between £12,570 and £50,270, then 2%
- Self-employed, Class 4
- 6% between £12,570 and £50,270, then 2%
- Self-employed, Class 2
- Treated as paid once profits pass £6,845
Savings, dividends and gains
- Capital gains annual exempt amount
- £3,000
- Capital gains rates
- 18% within the basic rate band, 24% above it
- Dividend allowance
- £500
- Personal savings allowance
- £1,000 basic rate, £500 higher rate, nil additional rate
- ISA allowance
- £20,000 a year
Then 8.75%, 33.75% or 39.35%
All growth and income inside is tax free
Pensions and payouts
- Pension annual allowance
- £60,000
- Tax free lump sum
- 25% of the pot, capped at £268,275
- Redundancy payment tax free slice
- £30,000
- Marriage allowance
- Worth up to £252 a year
Unused allowance can be carried forward three years
Inheritance tax
- Nil rate band
- £325,000 per person
- Residence nil rate band
- £175,000 where a home passes to children or grandchildren
- Rate above the bands
- 40%, or 36% where at least 10% of the estate goes to charity
- Annual gift exemption
- £3,000, plus small gifts of £250 per person
- Gifts out of surplus income
- Exempt if regular and affordable
Business and property
- Corporation tax
- 19% on profits to £50,000, tapering to 25% above £250,000
- Business Asset Disposal Relief
- 10% on qualifying gains up to a £1m lifetime limit
- VAT registration threshold
- £90,000 of taxable turnover
- Property allowance
- £1,000 of rental income tax free
- Trading allowance
- £1,000 of self-employed income tax free
- Rent a Room
- £7,500 of income from a lodger tax free
Student loan repayments
Repaid through payroll or Self Assessment once you earn over your plan threshold. Thresholds for 2025/26.
- Plan 1 threshold
- £26,065
- Plan 2 threshold
- £28,470
- Plan 4 threshold (Scotland)
- £32,745
- Plan 5 threshold
- £25,000
- Postgraduate loan threshold
- £21,000
9% of income above this
9% of income above this
9% of income above this
9% of income above this
6% of income above this
High Income Child Benefit Charge
Applies when the highest earner in the household has adjusted net income above £60,000.
- Charge starts
- £60,000
- Full clawback
- £80,000
- Avoid it
- Pension contributions or Gift Aid reduce adjusted net income
1% of the child benefit for each £100 of income over £60,000
All child benefit is repaid through the charge
You can also opt out of payments instead of paying the charge
Non-domicile and overseas income
From 6 April 2025 the old remittance basis is replaced by a residence-based regime.
- Foreign Income and Gains regime
- Foreign income and gains not taxed for first 4 tax years
- After year 4
- Worldwide income and gains are taxed as they arise
- Temporary repatriation facility
- Reduced rate for pre-2025 foreign income brought to the UK
Only if you have not been UK resident in the previous 10 tax years
No remittance basis from 2025/26 onwards
Check the window and conditions before using it
Stamp Duty Land Tax and the devolved taxes
England and Northern Ireland use SDLT. Scotland uses Land and Buildings Transaction Tax. Wales uses Land Transaction Tax.
- SDLT residential, up to £250,000
- 0%
- SDLT residential, £250,001 to £925,000
- 5%
- SDLT residential, £925,001 to £1.5m
- 10%
- SDLT residential, above £1.5m
- 12%
- First-time buyer relief
- 0% up to £425,000, then 5% to £625,000
- Additional property surcharge
- 5% on top of the residential rates
- Scotland
- Land and Buildings Transaction Tax
- Wales
- Land Transaction Tax
No relief above £625,000
Applies to most buy-to-let and second homes
Revenue Scotland sets the bands and rates
Welsh Government sets the bands and rates
What you can deduct or claim
Pension contributions
Relief at your highest rate, so £1,000 in costs a higher rate taxpayer £600.
Employed and self-employed
Work expenses you paid yourself
Uniform and tool allowances, professional subscriptions, mileage at 45p for the first 10,000 miles.
Employees
Working from home
£6 a week without receipts where your employer requires home working.
Employees
Business costs
Anything wholly for the trade: stock, tools, insurance, software, accountancy, plus a share of home costs.
Self-employed
Mortgage interest on lettings
A 20% tax reducer rather than a deduction from rent.
Landlords
Gift Aid donations
Extends your basic rate band, so higher rate taxpayers claim the difference back.
Everyone
Capital allowances
Full expensing and the £1m annual investment allowance on qualifying equipment.
Businesses
Forms to file with HMRC
| Form | What it does | When | Who needs it | Official page |
|---|---|---|---|---|
| Self Assessment SA100 | The main tax return | Online by 31 January after the tax year ends | Self-employed, landlords, high earners, anyone with untaxed income | GOV.UK |
| SA105 | Property pages for rental income | With your return | Landlords | GOV.UK |
| SA103 | Self-employment pages | With your return | Sole traders | GOV.UK |
| SA108 | Capital gains pages | With your return | Anyone selling assets | GOV.UK |
| P87 | Claim work expenses without a full return | Any time, backdated four years | Employees | GOV.UK |
| Marriage Allowance claim | Transfer £1,260 of allowance to a spouse | Any time, backdated four years | Couples where one earns under the allowance | GOV.UK |
| CGT on UK property return | Report and pay gains on residential property | Within 60 days of completion | Sellers of second homes and lettings | GOV.UK |
| IHT400 | Estate accounts after a death | Within 12 months, tax due at 6 months | Executors | GOV.UK |
| CT600 | Company tax return | 12 months after the accounting period, tax due at 9 months and a day | Limited companies | GOV.UK |
| SL1 / Student Loan Start Notice | Tells your employer which plan to use | When you start a job with a loan | Employees with student loans | GOV.UK |
| High Income Child Benefit Charge | Declared in Self Assessment | By 31 January after the tax year | Highest earner over £60,000 with child benefit | GOV.UK |
| SDLT return | Pay Stamp Duty Land Tax on most property purchases | Within 14 days of completion | Buyers in England and Northern Ireland | GOV.UK |
| LBTT return | Pay Land and Buildings Transaction Tax in Scotland | Within 30 days of the effective date | Buyers in Scotland | Revenue Scotland |
| LTT return | Pay Land Transaction Tax in Wales | Within 30 days of completion | Buyers in Wales | Welsh Government |
Where each figure comes from
Every number above is stored with the official page it came from and the date we last checked it. Last checked 9/12/2026. See what has changed.
| Figure | Now | Tax year | Checked | Official source |
|---|---|---|---|---|
| Capital gains annual exempt amount | £3,000 | 2025/26 | 9/12/2026 | HMRC: Capital Gains Tax allowances |
| Dividend allowance | £500 | 2025/26 | 9/10/2026 | HMRC: Tax on dividends |
| Corporation Tax small profits rate | 19% on profit up to £50,000 | 2025/26 | 9/12/2026 | HMRC: Corporation Tax rates |
| Corporation Tax main rate | 25% on profit above £250,000 | 2025/26 | 9/12/2026 | HMRC: Corporation Tax rates |
| Higher rate | 40% up to £125,140 | 2025/26 | 9/12/2026 | HMRC: Income Tax rates and Personal Allowances |
| Additional rate | 45% above £125,140 | 2025/26 | 9/12/2026 | HMRC: Income Tax rates and Personal Allowances |
| Basic rate | 20% on the first £37,700 of taxable income | 2025/26 | 9/12/2026 | HMRC: Income Tax rates and Personal Allowances |
| Personal allowance | £12,570 | 2025/26 | 9/12/2026 | HMRC: Income Tax rates and Personal Allowances |
| Personal allowance taper starts | £100,000 | 2025/26 | 9/10/2026 | HMRC: Income over £100,000 |
| Basic rate band | £37,700 | 2025/26 | 9/10/2026 | HMRC: Income Tax rates and Personal Allowances |
| Marriage allowance saving | Up to £252 a year | 2025/26 | 9/10/2026 | HMRC: Marriage Allowance |
| Tax free redundancy pay | First £30,000 | 2025/26 | 9/10/2026 | GOV.UK: Redundancy pay |
| Scottish top rate | 48% above £125,140 | 2025/26 | 9/10/2026 | Scottish Government: Income Tax |
| Residence nil rate band | £175,000 when a home passes to children or grandchildren | 2025/26 | 9/10/2026 | HMRC: Residence nil rate band |
| Inheritance tax nil rate band | £325,000 | 2025/26 | 9/12/2026 | HMRC: Inheritance Tax |
| Inheritance tax rate | 40% above the allowances | 2025/26 | 9/12/2026 | HMRC: Inheritance Tax |
| Employee National Insurance main rate | 8% between £12,570 and £50,270 | 2025/26 | 9/10/2026 | HMRC: National Insurance rates and categories |
| Upper earnings limit | £50,270, then 2% | 2025/26 | 9/10/2026 | HMRC: National Insurance rates and categories |
| National Insurance starts at | £12,570 a year | 2025/26 | 9/10/2026 | HMRC: National Insurance rates and categories |
| Late Self Assessment filing penalty | £100 straight away, then £10 a day | 2025/26 | 9/12/2026 | HMRC: Self Assessment deadlines |
| Trust registration penalty | Up to £5,000 for deliberate failure | 2025/26 | 9/12/2026 | HMRC Trust Registration Service |
| Maximum offshore penalty | Up to 200% of the tax | 2025/26 | 9/12/2026 | HMRC: Failure to Correct penalties |
| Pension annual allowance | £60,000 or your earnings, whichever is lower | 2025/26 | 9/10/2026 | HMRC: Pension annual allowance |
| ISA allowance | £20,000 a year | 2025/26 | 9/12/2026 | HMRC: Individual Savings Accounts |
Not covered here
- Complex trust, estate and partnership tax calculations
- Pension annual allowance tapering for very high earners
- Venture Capital Scheme eligibility and carry-back claims
Tax year: 2025/26. Your year ends 5 April.
Why 5 April?
The UK tax year used to end on 25 March, the old Lady Day quarter day. When Great Britain switched to the Gregorian calendar in 1752, 11 days were skipped, moving the date to 5 April so the Treasury did not lose tax revenue. It has stayed there ever since.
Three countries now, more as we grow
Today Taxmiser covers the United Kingdom, the United States and Australia in full, with real rates and real forms. We add a new country only once its figures are checked against the official tax office, so nothing here is a guess. Canada, Ireland, New Zealand and more are next in line as we grow.
Every US state taxes you differently
In the United States there are two bills, not one. Federal tax is the same wherever you live. State tax is not. Some states take nothing, some take a flat slice, some have their own bands and their own allowances. That is why we ask which state you are in, and why two people on the same pay can keep very different amounts.
See the state by state figures