Published: 12th March 2026
Personal Allowance (PA)* £12,570 £12,570
Marriage Allowance† 1,260 1,260 Blind Person’s Allowance 3,250 3,130 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Property income allowance** 1,000 1,000 *PA is withdrawn at £1 for every £2 by which ‘adjusted income’ exceeds £100,000.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 2026/27 2025/26
G S D G S D Basic rate % 20 20 10.75 20 20 8.75 Higher rate % 40 40 35.75 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.
Income tax – Scotland 2026/27 2025/26
Starter rate 19% £3,967 £2,827
Basic rate 20% 3,968 – 16,956 2,828 – 14,921
Intermediate rate 21% 16,957 – 31,092 14,922 – 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, in 2027/28, 15%) on designated income or gains; otherwise, their
unremitted income and gains become taxable at normal rates when remitted to the UK.
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 £184.90 £176.45
New state pension 241.30 230.25
Individual Savings Account (ISA) 2026/27 2025/26 – 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)
– 20% (2025/26: 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 employer 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.
Employer contributions (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 £7,105 (voluntary) £3.65
Flat rate per week £18.40
On profits between £12,570 and £50,270 6%
On profits over £50,270 2%
Employees with earnings above £129 per week and the self-employed with annual profits
over £7,105 (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 2026/27 2025/26
g/km miles % %
0 N/A 4 3
1-50 >130 4 3
1-50 70 -129 7 6
1-50 40 – 69 10 9
1-50 30 – 39 14 13
1-50 <30 16 15
51-54 N/A 17 16
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%.
Certain plug-in hybrid vehicles first registered after 31 December 2024, which have an
emissions figure of 51 or more, are deemed to have an emissions figure of 1.
Vans: Chargeable value of £4,170 (2025/26: £4,020) if private use is more
than home-to-work. Zero-emission vans charged at £Nil (2025/26: £Nil).
Fuel benefit
Employer provides fuel for private motoring in an employer-owned:
Car: CO2-based percentage from above table multiplied by £29,200
(2025/26: £28,200).
Van: £798 (2025/26: £769). 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 and vans: first 10,000 miles 45p
Cars and vans: over 10,000 miles 25p
Business passengers 5p
Motorcycles 24p
Bicycles 20p
Motorcycles 24p
Bicycles 20p
Individuals, estates £3,000 £3,000
Most trusts 1,500 1,500
Individual up to Basic Rate Limit (BRL) 18% 18%
Individual above BRL, trusts and estates 24% 24%
Business Asset Disposal Relief (BADR) 18% 14% BADR is available on qualifying gains up to a lifetime limit of £1 million.
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.
R&D-intensive companies are those that have R&D expenditure constituting at least 30%
of total tax-deductible P&L expenses plus capitalised R&D costs. Loss-making R&Dintensive 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 31.3.27 31.3.26
– 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 14% 18%
Writing down allowance: special rate pool 6% 6%
New cars only Nil 100% 100%
In general pool up to 50 14% 18%
In special rate pool above 50 6% 6%
Fixed deduction per annum 3% 3%
For income tax businesses, capital allowance rates are set for periods to 5 April, rather
than 31 March.
ATED applies to ‘high value’ residential properties owned via a corporate
structure, unless the property is used for a qualifying purpose. The tax
applies to properties valued at more than £500,000.
Property value Annual charge to
31.3.2027 31.3.2026
£0.5m – £1m £4,600 £4,450
£1m – £2m 9,450 9,150
£2m – £5m 32,200 31,050
£5m – £10m 74,450 72,700
£10m – £20m 151,450 145,950
Over £20m 303,450 292,350
Stamp Duty Land Tax (SDLT), Land and Buildings Transaction
Tax (LBTT) and Land Transaction Tax (LTT)
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.
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%
Registration level – Taxable turnover £90,000 £90,000
Deregistration level – Taxable turnover 88,000 88,000.
2026/27 2025/26
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 , up to a maximum value of £2.5 million (2025/26: unlimited); 50% relief
available thereafter.
Reduced tax charge on gifts within 7 years before death
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 2027 2026
2nd payment on account 31 July 2027 2026
Balancing payment 31 January 2028 2027
Capital Gains Tax* 31 January 2028 2027
Class 1A NIC 19 July 2027 2026
Class 1B NIC 19 October 2027 2026
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 2026
P11D, P11D(b) 6 July 2026
Self Assessment Tax Return (SATR)
paper version 31 October 2026
Online SATR if outstanding tax to be included
in 2027/28 PAYE code (if under £3,000) 30 December 2026
Online SATR 31 January 2027 *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.
