Published: 28th March 2025
Personal Allowance (PA)* £12,570 £12,570
Marriage Allowance† 1,260 1,260
Blind Person’s Allowance 3,130 3,070
Rent-a-room relief** 7,500 7,500
Trading income allowance** 1,000 1,000
Property income allowance** 1,000 1,000
*PA is withdrawn at £1 for every £2 by which ‘adjusted income’ exceeds £100,000. There is
no allowance given above £125,140.
†The part of the PA that is transferable to a spouse or civil partner who is not a higher
or additional rate taxpayer.
**If gross income exceeds this, the limit may be deducted instead of actual expenses.
Basic Rate Band (BRB) £37,700 £37,700
Higher Rate Band (HRB) 37,701 – 125,140 37,701 – 125,140
Additional rate over 125,140 over 125,140
Personal Savings Allowance (PSA)
– Basic rate taxpayer 1,000 1,000
– Higher rate taxpayer 500 500
Dividend Allowance (DA) 500 500
BRB and additional rate threshold are increased by personal pension contributions (up to
permitted limit) and Gift Aid donations.
Rates differ for General/Savings/Dividend income
G S D G S D
Basic rate % 20 20 8.75 20 20 8.75
Higher rate % 40 40 33.75 40 40 33.75
Additional rate % 45 45 39.35 45 45 39.35
General income (salary, pensions, business profits, rent) usually uses personal allowance,
basic rate and higher rate bands before savings income (mainly interest). Scottish taxpayers
are taxed at different rates on general income (see below).
Where savings income falls in the first £5,000 of the BRB, it is taxed at nil rather than 20%.
The PSA taxes savings income at nil, where it would otherwise be taxable at 20% or 40%.
Dividends are normally taxed as the ‘top slice’ of income. The DA taxes the first £500 of
dividend income at nil, rather than the rate that would otherwise apply.
Starter rate 19% £2,827 £2,306
Basic rate 20% 2,828 – 14,921 2,307 – 13,991
Intermediate rate 21% 14,922 – 31,092 13,992 – 31,092
Higher rate 42% 31,093 – 62,430 31,093 – 62,430
Advanced rate 45% 62,431 – 125,140 62,431 – 125,140
Top rate 48% over 125,140 125,140
Savings and dividend income are taxed at normal UK rates.
1% of child benefit for each £200 of adjusted net income between £60,000
and £80,000.
From 2025/26, those who are in their first 4 years of UK residence, having been non-resident for the previous 10 years, can claim to have most types of foreign income exempt from UK tax for the year. A similar claim is available for foreign capital gains. In prior years, ‘remittance basis’ was available for UK residents who were neither UKdomiciled nor deemed domiciled. If claimed, foreign income or gains were only taxable in the UK if remitted here. Remittance basis users with unremitted income or gains can use the Temporary Repatriation Facility in 2025/26 to 2027/28. This allows them to be taxed at a favourable rate (12% or 15%) on designated income or gains; otherwise, their unremitted income and gains become taxable at normal rates when remitted to the UK.
Annual Allowance (AA)* £60,000 £60,000
Annual relievable pension inputs are the higher of earnings (capped at AA) or £3,600.
*Usually tapered down, to a minimum of £10,000, when adjusted income exceeds £260,000.
The maximum tax-free pension lump sum is £268,275, unless a higher amount is “protected”.
Old state pension £176.45 £169.50
New state pension 230.25 221.20
Individual Savings Account (ISA)
– Overall limit £20,000 £20,000
– Lifetime ISA 4,000 4,000
Junior ISA 9,000 9,000
EIS – 30% relief 2,000,000 2,000,000
Seed EIS (SEIS) – 50% relief 200,000 200,000
Venture Capital Trust (VCT) – 30% relief 200,000 200,000
Main NICs rate 8% 15%
No NICs on first £242pw £96pw
Main rate charged up to* £967pw no limit
2% rate on earnings above £967pw N/A
Employment allowance per business** N/A £10,500
*Nil rate of employers’ NICs on earnings up to £967pw for employees aged under 21, apprentices aged under 25 and ex-armed forces personnel in their first twelve months of civilian employment.
**Some businesses do not qualify, including certain sole director companies.
Employers’ NICs (at 15%) are also due on most taxable benefits (Class 1A) and on tax paid
on an employee’s behalf under a PAYE settlement agreement (Class 1B).
Flat rate per week if profits below £6,845 (voluntary) £3.50
Flat rate per week £17.75
On profits between £12,570 and £50,270 6%
On profits over £50,270 2%
Employees with earnings above £125 per week and the self-employed with annual profits over £6,845 (or who pay voluntary Class 2 contributions) can access entitlement to contributory benefits.
Cars: Taxable benefit: List price of car multiplied by chargeable percentage.
Electric
CO2 Range 2025/26 2024/25
g/km miles % %
0 N/A 3 2
1-50 >130 3 2
1-50 70 -129 6 5
1-50 40 – 69 9 8
1-50 30 – 39 13 12
1-50 <30 15 14
51-54 N/A 16 15
Then a further 1% for each 5g/km CO2 emissions, up to a maximum of 37%.
Diesel cars that are not RDE2 standard suffer a 4% supplement on the above figures but
are still capped at 37%.
Vans: Chargeable value of £4,020 (2024/25: £3,960) if private use is more
than home-to-work. Zero-emission vans charged at £Nil (2024/25: £Nil).
Employer provides fuel for private motoring in an employer-owned:
Car: CO2-based percentage from above table multiplied by £28,200
(2024/25: £27,800).
Van: £769 (2024/25: £757).
Employee contributions do not reduce taxable figure unless all private fuel is paid for by the
employee (in which case there is no benefit charge).
Cars first 10,000 miles 45p
Cars over 10,000 miles 25p
Business passengers 5p
Motorcycles 24p
Bicycles 20p
Individuals & estates/Trusts £3,000/1,500 £3,000/1,500
Disposals Disposals
Individual up from 30.10.24 up to 29.10.24
to Basic Rate Limit (BRL)
– Residential property 18% 18% 18%
– Other assets 18% 18% 10%
Individual above
BRL, trusts and estates
– Residential property 24% 24% 24%
– Other assets 24% 24% 20%
Business Asset Disposal
Relief (BADR) 14% 10% 10%
Main rate (profits above £250,000) 25% 25%
Small profits rate (profits up to £50,000) 19% 19%
Marginal relief band (MRB) £50k – £250k £50k – £250k
Fraction in MRB (effective marginal rate) 3/200 (26.5%) 3/200 (26.5%)
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.
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]).
Companies only 31.3.26 31.3.25
– 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 18% 18%
Writing down allowance: special rate pool 6% 6%
New cars only Nil 100%
In general pool up to 50 18%
In special rate pool above 50 6%
Fixed deduction per annum 3%
ATED applies to ‘high value’ residential properties owned via a corporate
structure, unless the property is used for a qualifying purpose.
31.3.2026 31.3.2025
£0.5m – £1m £4,450 £4,400
£1m – £2m 9,150 9,000
£2m – £5m 31,050 30,550
£5m – £10m 72,700 71,500
£10m – £20m 145,950 143,550
Over £20m 292,350 287,500
Residential property (1st property only)
SDLT – England & NI LBTT – Scotland LTT – Wales
£000 Rate £000 Rate £000 Rate
Up to 125 Nil Up to 145 Nil Up to 225 Nil
125 – 250 2% 145 – 250 2% 225 – 400 6.0%
250 – 925 5% 250 – 325 5% 400 – 750 7.5%
925 – 1,500 10% 325 – 750 10% 750 – 1,500 10.0%
Over 1,500 12% Over 750 12% Over 1,500 12.0%
A surcharge applies for all three taxes where an additional residential property interest is purchased for more than £40,000 (unless replacing a main residence). It is also payable by all corporate purchasers. The rate is 5% (SDLT) and 8% (LBTT) of the total purchase price. LTT has specific higher rates in bandings: up to 180k: 5%, 180 – 250k:
8.5%, 250 – 400k: 10%, 400 – 750k: 12.5%, 750-1,500k: 15%, >1,500k: 17%.
For SDLT:
– First-time buyers purchasing a property of up to £500,000 pay a nil rate on the first
£300,000 of the purchase price.
– A 2% supplement applies where the property is bought by certain non-UK residents.
– A rate of 17% may apply to the total purchase price, where the property is valued
above £500,000 and purchased by a ‘non-natural person’ (e.g. a company).
For LBTT, first-time buyer relief increases the nil rate band to £175,000.
Non-residential or mixed use property
SDLT – England & NI LBTT – Scotland LTT – Wales
£000 Rate £000 Rate £000 Rate
Up to 150 Nil Up to 150 Nil Up to 225 Nil
150 – 250 2% 150 – 250 1% 225 – 250 1%
Over 250 5% Over 250 5% 250 – 1,000 5%
Over 1,000 6%
Standard rate (1/6 of VAT-inclusive price) 20%
From 1.4.2024 Pre 1.4.2024
Registration level – Taxable turnover £90,000 p.a. £85,000 p.a.
Deregistration level – Taxable turnover 88,000 p.a. 83,000 p.a.
2025/26 2024/25
Nil rate band (NRB)* £325,000 £325,000
NRB Residential enhancement (RNRB)†* 175,000 175,000
Tax rate on death** 40% 40%
Tax rate on lifetime transfers to most trusts 20% 20%
*Up to 100% of the proportion of a deceased spouse’s/civil partner’s unused NRB and RNRB band may be claimed to increment the current NRB and RNRB when the survivor dies.
†RNRB is available for transfers on death of a main residence to (broadly) direct descendants. It tapers away at the rate of £1 for every £2 of estate value above £2m.
**Rate reduced to 36% if at least 10% of the relevant estate is left to charity.
Unlimited exemption for transfers between spouses/civil partners, except if transferor is a ‘long-term resident’ and transferee is not; maximum exemption is then £325,000.
100% Business Property Relief (BPR) for all shareholdings in qualifying unquoted trading companies, qualifying unincorporated trading businesses and certain farmland/ buildings.
Years before death 0-3 3-4 4-5 5-6 6-7
% of full death tax charge payable 100 80 60 40 20
Annual exemptions for lifetime gifts include £3,000 per donor and £250 per recipient.
1st payment on account 31 January 2026 2025
2nd payment on account 31 July 2026 2025
Balancing payment 31 January 2027 2026
Capital Gains Tax* 31 January 2027 2026
Class 1A NIC 19 July 2026 2025
Class 1B NIC 19 October 2026 2025
Corporation tax is due 9 months and 1 day from the end of the accounting period, unless a ‘large’ company paying by quarterly instalments.
Issue P60s to employees 31 May 2025
P11D, P11D(b) 6 July 2025
Self Assessment Tax Return (SATR)
paper version 31 October 2025
Online SATR if outstanding tax to be included
in 2026/27 PAYE code (if under £3,000) 30 December 2025
Online SATR 31 January 2026
*A CGT return is due within 60 days of completion of sale of any UK land and buildings by a non-resident and of sale of UK residential property with a tax liability by a UK resident. Any CGT payable is also due within 60 days.
You are advised to consult us before acting on any information contained herein.
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