The UK tax year runs from 6 April 2025 to 5 April 2026. Below are the headline allowances, bands and thresholds that matter for most taxpayers, taken directly from HMRC and Scottish Government publications. Scroll to the section you need.
At a glance
Income Tax (England, Wales & Northern Ireland)
The Personal Allowance stays at £12,570 — unchanged since 2021 as part of the ongoing fiscal-drag freeze. It tapers down by £1 for every £2 of adjusted net income over £100,000, meaning it is zero at £125,140.
| Band | Range | Rate |
|---|---|---|
| Personal Allowance | £0 – £12,570 | 0% |
| Basic rate | £12,571 – £50,270 | 20% |
| Higher rate | £50,271 – £125,140 | 40% |
| Additional rate | over £125,140 | 45% |
Scottish Income Tax bands
Scotland sets its own rates and bands for non-savings non-dividend income. Savings and dividends stay UK-wide.
| Band | Range | 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 | over £125,140 | 48% |
National Insurance
Class 1 employee NIC is charged on weekly earnings above the Primary Threshold. Employers continue to pay secondary NIC at the Secondary Threshold. Class 4 (self-employed) mirrors the main-rate structure.
| Class | Threshold | Main rate | Higher rate |
|---|---|---|---|
| Class 1 (employee) | £12,570 / yr | 8% | 2% above UEL (£50,270) |
| Class 1A (benefits) | n/a | 15% | — |
| Class 2 (self-employed) | Voluntary below £6,845 profit | £3.50/wk | — |
| Class 4 (self-employed) | £12,570 – £50,270 | 6% | 2% above £50,270 |
ISA + pension allowances
The overall ISA allowance remains at £20,000 per tax year, spread across Cash, Stocks & Shares, Innovative Finance and/or Lifetime ISA. The Junior ISA allowance is £9,000.
Pension annual allowance is £60,000 (or 100% of relevant earnings if lower). It tapers by £1 for every £2 of adjusted income over £260,000, bottoming out at £10,000. The Lifetime Allowance charge was abolished from 6 April 2024 — replaced by the Lump Sum Allowance (£268,275).
Stamp Duty (SDLT) from 1 April 2025
The Autumn Budget 2024 confirmed the reversion of the nil-rate band and the reduction of first-time-buyer relief from 1 April 2025. England and NI only — Wales uses Land Transaction Tax, Scotland uses LBTT.
| Price band | Standard | FTB relief | +Additional home |
|---|---|---|---|
| Up to £125,000 | 0% | 0% (to £300k) | 5% |
| £125,001 – £250,000 | 2% | 0% (to £300k) | 7% |
| £250,001 – £925,000 | 5% | 5% (above £300k) | 10% |
| £925,001 – £1.5m | 10% | n/a | 15% |
| Over £1.5m | 12% | n/a | 17% |
Capital Gains & Inheritance Tax
The Capital Gains Annual Exempt Amount is £3,000 (down from £6,000 in 2023/24). Main CGT rates:
| Asset class | Basic rate | Higher / Additional |
|---|---|---|
| Most assets | 18% | 24% |
| Residential property | 18% | 24% |
| Carried interest | 32% | 32% |
| Business Asset Disposal Relief | 14% | 14% (rising to 18% from 2026/27) |
Inheritance Tax nil-rate band stays at £325,000, plus the Residence Nil-Rate Band up to £175,000 when leaving a main home to direct descendants. The 40% rate drops to 36% if 10%+ of the estate is left to charity.
Corporation Tax & Dividend Tax
Corporation Tax main rate is 25% on profits at or above £250,000. The Small Profits Rate is 19% up to £50,000. Profits between £50,000 and £250,000 use Marginal Relief — effective rate scales smoothly from 19% to 25%.
Dividend Allowance is £500 (down from £1,000 in 2023/24). Dividend tax: 8.75% (basic), 33.75% (higher), 39.35% (additional).
Official sources and related reads
- UK tax code guide — useful when PAYE deductions do not match the expected year-end result.
- UK pension allowances guide — the pension limits behind tax planning decisions.
- GOV.UK: Income Tax rates and allowances — current rates and bands.
- GOV.UK: ISAs overview — the official ISA wrapper rules.
- GOV.UK: pension annual allowance — the current pension contribution limit.