Tax Rates And Allowances
Last updated: 18 October 2026
Here are the main UK tax rates and allowances for the 2026/27 tax year (6 April 2026 to 5 April 2027), checked against GOV.UK. Rates for Scotland differ for Income Tax on earnings.
Income Tax 2026/27 (England, Wales and Northern Ireland)
| Band | Taxable income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
The Personal Allowance falls by £1 for every £2 of income over £100,000. It is zero at £125,140.
Dividends
Dividend allowance: £500. Rates from 6 April 2026: 10.75% basic rate, 35.75% higher rate and 39.35% additional rate.
National Insurance 2026/27
- Employees (Class 1): 8% on earnings between £12,570 and £50,270, and 2% above.
- Employers (Class 1): 15% on earnings above £5,000 a year (£96 a week). Employment Allowance is up to £10,500.
- Self-employed (Class 4): 6% on profits between £12,570 and £50,270, and 2% above.
- Class 2 (voluntary): £3.65 a week. The small profits threshold is £7,105.
- Class 3 (voluntary): £18.40 a week.
Corporation Tax (from 1 April 2026)
Small profits rate: 19% on profits up to £50,000. Main rate: 25% on profits over £250,000. Marginal relief applies in between.
Capital Gains Tax 2026/27
Annual exempt amount: £3,000. Rates: 18% and 24%. Business Asset Disposal Relief and Investors’ Relief: 18%.
VAT
Standard rate: 20%. Reduced rate: 5%. Registration threshold: £90,000. Deregistration threshold: £88,000.
Other allowances
- Trading allowance and property allowance: £1,000 each.
- Approved mileage rate for cars and vans: 55p a mile for the first 10,000 business miles, then 25p.
- Main pool writing down allowance: 14% from April 2026. Annual Investment Allowance: £1 million.
Coming in April 2027
Property income will be taxed at separate rates of 22%, 42% and 47%. Making Tax Digital for Income Tax will extend to qualifying income over £30,000.
Tax rates FAQs
When does the 2026/27 tax year end?
On 5 April 2027. Self Assessment returns for 2026/27 are due online by 31 January 2028.
Has the Personal Allowance changed?
No. It stays at £12,570, and the government has frozen it until April 2031.
Work out your own figures with our free tax calculators, see key dates in our UK tax calendar, or ask our limited company and self-employed accountants for advice. Call 0800 644 1258.