Tax tables
Income Tax
| Band | 2024-25 | 2025-26 | ||||
|---|---|---|---|---|---|---|
| Taxable Income | Rate % | Dividend Rate % | Taxable Income | Rate % | Dividend Rate % | |
| Basic rate | £0 to £37,700 | 20.0% * | 8.75% | £0 to £37,700 | 20.0% * | 8.75% |
| Higher rate | £37,701 to £125,140 | 40.0% | 33.75% | £37,701 to £125,140 | 40.0% | 33.75% |
| Additional rate | Over £125,141 | 45.0% | 39.35% | Over £125,141 | 45.0% | 39.35% |
| Personal Savings Allowance (PSA) ** | ||||||
| Basic rate taxpayer | £1,000 | £ 1,000 | ||||
| Higher rate taxpayer | £500 | £500 | ||||
| Additional rate taxpayer | Nil | Nil | ||||
| Certain trusts taxed at 45% (39.35% on dividend income). | ||||||
* Savings income of up to £ 5,000 taxable at 0% in certain circumstances.** Personal saving allowance utilise the basic and higher rate bands.
| Allowances | 2024-25 | 2025-26 | |
|---|---|---|---|
| Dividend Allowance (DA) | £500 | £500 | |
| Personal Allowance (PA) | (A,B) | £12,570 | £12,570 |
| Marriage Allowance | (B,C) | £1,260 | £1,260 |
| Blind Person’s Allowance | (B) | £3,070 | £3,130 |
| Rent a room relief (maximum) | £ 7,500 | £ 7,500 | |
| Trading Income Allowance | (D) | £ 1,000 | £ 1,000 |
| Property Income Allowance | (D) | £1,000 | £1,000 |
(A) Reduced by £1 for every £2 of income over £100,000.(B) Non-residents may not be entitled to personal allowances in certain circumstances.(C) Transferable marriage/civil partnership allowance applies to recipient taxpayers who are not liable to income tax at the higher or additional rate or Scottish income tax at the higher, advanced or top rate.(D) If gross income exceeds £1,000, a deduction of £1,000 instead of actual expenses is permitted.
High Income Child Benefit Charge: 1% of benefit per £ 200 of adjusted net income between £ 60,000 and £ 80,000
National Insurance Contributions
| Class 1 (Employees) | 2025-26 | |
|---|---|---|
| Employee | Employer | |
| Main NIC rate | 8% | 15% |
| No NICs for employees generally on the first | £ 242 pw | £ 96 pw |
| No NICs for younger employees* on the first | £ 242 pw | £ 967 pw |
| NICs rate charged up to | £ 967 pw | no limit |
| 2% NICs on earnings over | £ 967 pw | N/A |
| Employment Allowance | £10,500 | |
| Per business – not available if sole employee is a director | ||
| Class 1A Employer | ||
| On most employees’ and directors’ taxable benefits | 15% | |
| Class 2 (Self-employed) | ||
| Flat rate (if earnings exceed £ 6,845) | £ 3.50 pw | |
| Small profits threshold | £ 6,845 | |
| Class 3 (Voluntary) | ||
| Class 3: Flat rate per week | £ 17.75 | |
| Class 4 (Self-employed) | ||
| On profits between £12,570 and £50,270 | 6% | |
| On profits over £50,270 | 2% | |
* No employer NICs on the first £967 pw for employees generally under 21 years, apprentices under 25 years and veterans in first 12 months of civilian employment. No employer NICs on the first £481 pw for employees at freeports and investment zones in Great Britain in the first 36 months of employment
Capital Gains Tax
| Details | 2024-25 | 2025-26 |
|---|---|---|
| Annual exempt amount | ||
| Individuals | £3,000 | £3,000 |
| Trusts | £1,500 (A) | £1,500 (A) |
| Tax rate | ||
| Basic rate taxpayers | 18% | 18% |
| Higher rate taxpayers | 24% (B) | 24% (B) |
| Trustees | 24% (B) | 24% (B) |
| Business Asset Disposal (capped at 1 million). You can claim a total of £1 million in Business Asset Disposal Relief over your lifetime. | 10% | 14% |
| Rate where business asset disposal/investors’ relief applies | 10% | 14% (C) |
(A) Exempt amount subject to related trusts rules.(B) The capital gains tax rate for gains on carried interest is 28% for higher and additional rate taxpayers, trusts and personal representatives. The capital gains tax rate for gains on carried interest is 32% in 2025–26 for all taxpayers.(C) Increasing to 18% from 6 April 2026.
Corporation Tax
| Year to | 2024-25 | 2025-26 | |
|---|---|---|---|
| Corporation Tax (Main rate) | (A,C) | 25.00% | 25.00% |
| Corporation Tax (Small profits rate) | (B,C) | 19.00% | 19.00% |
| Loans to participators | 33.75% | 33.75% | |
| Corporation tax on restitution interest payments | (D) | 45% | 45% |
| Diverted profits tax | (E) | 31% | 31% |
(A) Applies to companies with taxable profits exceeding £250,000 (reduced proportionately for the number of associated companies) and taxable profits of certain investment companies beneath £250,000.(B) Applies to companies with taxable profits beneath £50,000 (reduced proportionately for the number of associated companies) except taxable profits of certain investment companies.(C) Marginal relief applies for profits between £50,000 and £250,000, with thresholds reduced proportionately for the number of associated companies.(D) Withheld at source.(E) Applies to profits of large entities diverted from the UK as a result of an avoided permanent establishment or transactions that lack economic substance (55% for such profits of entities subject to ring fence corporation tax).
Value Added Tax
| Details | 2025-26 |
|---|---|
| Standard rate | 20% |
| Reduced rate | 5% |
| Taxable Turnover Limits | |
| Annual turnover threshold for registration | £90,000 per annum |
| Annual turnover limit for deregistration | £88,000 per annum |
| Flat Rate Scheme (FRS) | |
| Flat rate scheme turnover limit | £150,000 |
| Cash accounting and Annual accounting schemes | |
| Annual taxable turnover to enter scheme | Up to £1.35m |
| Must leave scheme if annual taxable turnover | Exceeds £1.60m |
Basic State Pension
| State pension (per week) | 2024 – 25 | 2025 – 26 |
|---|---|---|
| Basic State Pension | £169.50 | £176.45 |
| New State Pension * | £221.20 | £230.25 |
* for those reaching State Pension age on or after 6 April 2016
Car Benefit For Employees
Taxable benefit: List price of car multiplied by chargeable percentage.| CO2 g/km | Electric Range miles | 2024-25 | 2025-26 |
|---|---|---|---|
| 0 | N/A | 2% | 3% |
| 1-50 | >130 | 2% | 3% |
| 1-50 | 70-129 | 5% | 6% |
| 1-50 | 40-69 | 8% | 9% |
| 1-50 | 30-39 | 12% | 13% |
| 1-50 | <30 | 14% | 15% |
| 51-54 | N/A | 15% | 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%.
Fuel Benefit
| FUEL BENEFIT | 2024-25 | 2025-26 |
|---|---|---|
| Multiply the CO2% used for the car benefit by | £27,800 | £28,200 |
| Vans – Fixed charge | £3,960 | £4,020 |
| Vans – Fuel benefit (if fuel is provided by the employer for private travel) | £757 | £769 |
| Zero-emission vans charged | £0 | £0 |
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).
Child Trust Fund
The Child Trust Fund (CTF) is a long-term tax-free savings account for children born between 1 September 2002 and 2 January 2011.
The money in the CTF account belongs to the child but can’t be taken out until they are 18.
Parents, family and friends can add money to the account up to a limit of £9,000 in the 2024 to 2025 tax year.
You can’t apply for a new Child Trust Fund because the scheme is now closed. You can apply for a Junior ISA instead.JUNIOR ISAYou can’t have a Junior ISA as well as a Child Trust Fund. If you want to open a Junior ISA ask the provider to transfer the trust fund into it.
The money in the Junior ISA account belongs to the child. The child can take control of the account when they’re 16 but can’t withdraw until they are 18.
Your child can only have:
- 1 cash Junior ISA
- 1 stocks and shares Junior ISA
Anyone (including child) can pay money into a Junior ISA, but the total amount paid in can’t go over £9000 in the 2024 to 2025 tax year.
Company Cars Advisory Fuel Rates
| (Effective from 01 December 2024) for employee private mileage reimbursement or employer reimbursement of business mileage in company cars | |
|---|---|
| Engine Size | Petrol – rate per mile |
| 1400cc or less | 12p |
| 1401cc – 2000cc | 14p |
| Over 2000cc | 23p |
| Engine Size | LPG – rate per mile |
|---|---|
| 1400cc or less | 11p |
| 1401cc – 2000cc | 13p |
| Over 2000cc | 21p |
| Engine Size | Diesel – rate per mile |
|---|---|
| 1600cc or less | 11p |
| 1601cc – 2000cc | 13p |
| Over 2000cc | 17p |
Employee Share Scheme Limits
| 2023-24 | |
|---|---|
| Share incentive plans | |
| Employer contributions | £3,600 |
| Employer matching | (2:1) |
| Employee | £1,800 |
| Enterprise management incentive option value | £250,000 |
| Approved share option schemes option value | £30,000 |
| Savings-related share options per month (up to) | £500 |
Individual Savings Account (ISA)
| 2024-25 | 2025-26 | ||
|---|---|---|---|
| Overall limit | £20,000 | £20,000 | |
| Lifetime ISA | £4,000 | £4,000 | |
| Junior ISA | £9,000 | £9,000 | |
| Relief | |||
| EIS | 30% | £2,000,000 | £2,000,000 |
| Seed EIS (SEIS) | 50% | £200,000 | £200,000 |
| Venture Capital Trust (VCT) | 30% | £200,000 | £200,000 |
Inheritance tax
| Description | 2024-25 | 2025-26 | |
|---|---|---|---|
| Nil rate band (NRB) | (1) | £325,000 | £325,000 |
| NRB Residential enhancement (RNRB) | (2) | £175,000 | £175,000 |
| Tax rate on death | (3) | 40% | 40% |
| Tax rate on lifetime transfers to most trusts | 20% | 20% |
(1) 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.(2) RNRB is available for transfers of a main residence to (broadly) direct descendants. It tapers away at the rate of £1 for every £2 of estate value above £2m.(3) 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 UK domiciled transferor and foreign domiciled transferee, where maximum exemption £325,000.
100% Business Property Relief (BPR) for all shareholdings in qualifying unquoted trading companies, qualifying unincorporated trading businesses and certain farmland/buildings.
| 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. | |||||
Main Capital And Other Allowances
| Plant and machinery allowances | Rate |
| Expenditure 1.4.25 – 31.3.26 (companies only) | |
| First-year allowance (main pool expenditure) | 100% |
| Super-deduction (main pool expenditure) | N/A |
| First-year allowance (special rate pool expenditure) | 50% |
| Annual Investment Allowance (AIA) | |
| expenditure 1.4.25 – 31.3.26 of up to £1m | 100% |
| New electric vans | 100% |
| Writing down allowance: general pool (reducing balance) | 18% |
| Writing down allowance: special rate pool (reducing balance) | 6% |
| Motor cars purchased | |||
|---|---|---|---|
| CO2 (g/km) | CO2 (g/km) | Allowance | |
| New cars only | Nil | up to 50 | 100% |
| In general pool | up to 50 | up to 110 | 18% |
| In special rate pool | above 50 | above 110 | 6% |
| Structures and buildings allowance | |
|---|---|
| Fixed deduction per annum | 3% |
Main Due Dates For Tax Payment
| Payment dates | |||
|---|---|---|---|
| Self assessment | 2024/25 | 2025/26 | |
| 1st payment on account | 31 January | 2025 | 2026 |
| 2nd payment on account | 31 July | 2025 | 2026 |
| Balancing payment | 31 January | 2026 | 2027 |
| Capital Gains Tax (A) | 31 January | 2026 | 2027 |
| Other payment dates | 2024/25 | 2025/26 | |
| Class 1A NIC | 19 July | 2025 | 2026 |
| Class 1B NIC | 19 October | 2025 | 2026 |
| Filing deadlines | 2024/25 | 2025/26 | |
| Issue P60s to employees | 31 May | 2025 | 2026 |
| P11D, P11D(b) | 6 July | 2025 | 2026 |
| Self Assessment Tax Return (SATR) | |||
| Paper version | 31 October | 2025 | 2026 |
| Online SATR if outstanding tax to be included in 2024/25 PAYE code (if under £3,000) | 30 December | 2025 | 2026 |
| Online SATR | 31 January | 2026 | 2027 |
(A) 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
Corporation tax is due 9 months and 1 day from the end of the accounting period, unless a ‘large’ company paying by quarterly instalments.
A CGT return is due within 60 days of completion of sale of UK land and buildings by a non-resident and of sale of UK residential property with a tax liability by a UK resident.
Working Tax Credit And Child Tax Credit
| Working Tax Credit for those without Children (£) | ||
|---|---|---|
| Annual income (£) | Single person aged 25 or over working 30 or more hours a week | Couple (working adults aged 25 or over ) working 30 or more hours a week |
| *11,700 | 795 | 2,615 |
| 12,000 | 485 | 2,495 |
| 13,000 | 75 | 2,085 |
| 14,000 | – | 1,675 |
| 15,000 | – | 1,265 |
| 16,000 | – | 855 |
| 17,000 | – | 445 |
| 18,000 | – | 35 |
| 19,000+ | – | – |
* Someone aged 25 or over, working 30 hours a week on National Living Wage (Based on April 2017 rates) would earn £11,700 a year.
| If you are in work and responsible for at least one child | |||
|---|---|---|---|
| Working and Child Tax Credit (£) | |||
| Annual income (£) | One child / Young person | Two children / Young person | Three children / Young person |
| (*1,*2) 6,240 | 7,300 | 10,080 | 12,865 |
| 11,700 | 5,945 | 8,725 | 11,510 |
| 15,000 | 4,595 | 7,375 | 10,155 |
| 20,000 | 2,545 | 5,325 | 8,105 |
| 25,000 | 495 | 3,275 | 6,055 |
| 30,000 | – | 1,225 | 4,005 |
| 35,000 | – | – | 1,955 |
| 40,000+ | – | – | – |
*1 – Those with incomes of £6,240 a year are assumed to work part-time working between 16 and 29 hours a week).
*2 – In families with an income of £11,700 a year or more, at least one adult is assumed to be working 30 hours or more a week (consistent with a minimum adult living wage of £7.50 (based on April 2016 rates) for those aged 25 and over).
Note: If you have a child with a disability you may be entitled to more.
The maximum amounts may be higher if you are entitled to the disability or childcare elements of Working Tax Credit.
| If you do not qualify for working tax credit | |||
|---|---|---|---|
| Child Tax Credit Only (£) | |||
| Annual income (£) | One child | Two children | Three children |
| No income | 3,330 | 6,110 | 8,890 |
| 5,000 | 3,330 | 6,110 | 8,890 |
| 8,000 | 3,330 | 6,110 | 8,890 |
| 10,000 | 3,330 | 6,110 | 8,890 |
| 15,000 | 3,330 | 6,110 | 8,890 |
| 20,000 | 1,730 | 4,515 | 7,295 |
| 25,000 | – | 2,465 | 5,245 |
| 30,000 | – | 415 | 3,195 |
| 35,000 | – | – | 1,145 |
| 40,000 | – | – | – |
Note: If you have a child with a disability you may be entitled to more.
Using this table, if your income is £15,000 a year and you have 2 children but are not eligible for Working Tax Credit, you could get an annual Child Tax Credit award of £6,110, equivalent to £117.50 a week.
Jobseeker Allowance
| Who is eligible for Jobseeker’s Allowance? |
|---|
To claim Jobseeker’s Allowance you need to be actively looking for work and:# over 18 but below State Pension age# unemployed or working fewer than 16 hours per week# living in England, Scotland or WalesUnder 18s: you can’t get Jobseeker’s Allowance, except in special circumstances.Under 20s: you can’t get Jobseeker’s Allowance while you are in education and your parents are receiving Child Benefit for you.Full time students: you can’t usually get Jobseeker’s Allowance until your course has officially finished – check the date with your college or university.
How much will you get paid?Depending on your circumstances you may be entitled to the following amounts:
| Age | Maximum weekly amount (2024-25) | Maximum weekly amount (2025-26) |
|---|---|---|
| Under 25 | up to £71.70 | up to £72.90 |
| 25 or over | up to £ 90.50 | up to £ 92.05 |
| Couples (both aged over 18) | up to £142.25 | up to £144.65 |
Registered Pensions
| 2024/25 | 2025/26 | |
|---|---|---|
| Lump sum and death benefit allowance | £1,073,100 | £1,073,100 |
| Lump sum allowance | £268,275 | £268,275 |
| Money purchase annual allowance | £10,000 | £10,000 |
| Annual Allowance (AA)* | £60,000 | £60,000 |
Annual allowance charge on excess is at applicable tax rate(s) on earnings
* Reduced by £1 for every £2 of adjusted income over £260,000 to a minimum of £10,000, subject to threshold income being over £200,000
Stamp Duties
| Transfers of property are subject to stamp duty land tax at the following rates (From 1st April 2025): | ||
|---|---|---|
| Residential | Standard Rate (Single) | Buy-to-let (Second home rate) |
| Value up to to £125,000 | 0% | 5% |
| Over £125,000* to £250,000 | 2% | 7% |
| Over £250,000 to £925,000 | 5% | 10% |
| Over £925,000 to £1,500,000 | 10% | 15% |
| Over £1,500,000** | 12% | 17% |
| Commercial | Tax Rate | |
| Value up to £150,000 | 0% | |
| Over £150,000 to £250,000 | 2% | |
| Over £250,000 | 5% |
The calculation of SDLT on purchase of non-residential property was changed from the whole transaction value to the same basis as residential (consideration falling within each band).
The rate of stamp duty / stamp duty reserve tax on the transfer of shares and securities is generally payable at 0.5 per cent. If you buy stocks and shares for £1,000 or less you don’t normally have to pay any stamp duty.
| New Leases |
|---|
Duty is charged according to the net present value of all the rental payments over the term of the lease (NPV), with a single rate of 1% on residential NPV’s over £125,000.
Duty is charged according to the net present value of all the rental payments over the term of the lease (NPV) at 1% on non-residential NPV’s over £150,000 and this rises to 2% on leases with an NPV greater than £5m.
VAT is excluded from treatment as consideration provided the landlord has not opted to charge VAT by the time the lease is granted.
| Lease premiums |
|---|
Duty on premiums is the same as for transfers of land.
Tax-Free Mileage Allowance
| A statutory system of Approved Mileage Allowance Payments (AMAPs) applies for employees using their own vehicles for business journeys, as follows: | |
|---|---|
| Cars and vans: | |
| on the first 10,000 miles in the tax year | 45p per mile |
| on each additional mile above this | 25p per mile |
| Business passengers | 5p per mile |
| Motorcycles | 24p per mile |
| Bicycles | 20p per mile |
Unless the employee is reimbursed at a rate higher than the AMAP, the payments do not need to be reported on a P11D. If the employer pays less than these rates, it is possible for the employee to claim income tax relief for the shortfall.
Rates of up to 5p per mile, per passenger, are also tax and NICs free when paid for the carriage of fellow employees on the same business trip. This also covers volunteers who drive for hospital car services etc, even though they are not strictly employees.
| Band | 2024-25 | 2025-26 | ||||
|---|---|---|---|---|---|---|
| Taxable Income | Rate % | Dividend Rate % | Taxable Income | Rate % | Dividend Rate % | |
| Basic rate | £0 to £37,700 | 20.0% * | 8.75% | £0 to £37,700 | 20.0% * | 8.75% |
| Higher rate | £37,701 to £125,140 | 40.0% | 33.75% | £37,701 to £125,140 | 40.0% | 33.75% |
| Additional rate | Over £125,141 | 45.0% | 39.35% | Over £125,141 | 45.0% | 39.35% |
| Personal Savings Allowance (PSA) ** | ||||||
| Basic rate taxpayer | £1,000 | £ 1,000 | ||||
| Higher rate taxpayer | £500 | £500 | ||||
| Additional rate taxpayer | Nil | Nil | ||||
| Certain trusts taxed at 45% (39.35% on dividend income). | ||||||
* Savings income of up to £ 5,000 taxable at 0% in certain circumstances.** Personal saving allowance utilise the basic and higher rate bands.
| Allowances | 2024-25 | 2025-26 | |
|---|---|---|---|
| Dividend Allowance (DA) | £500 | £500 | |
| Personal Allowance (PA) | (A,B) | £12,570 | £12,570 |
| Marriage Allowance | (B,C) | £1,260 | £1,260 |
| Blind Person’s Allowance | (B) | £3,070 | £3,130 |
| Rent a room relief (maximum) | £ 7,500 | £ 7,500 | |
| Trading Income Allowance | (D) | £ 1,000 | £ 1,000 |
| Property Income Allowance | (D) | £1,000 | £1,000 |
(A) Reduced by £1 for every £2 of income over £100,000.(B) Non-residents may not be entitled to personal allowances in certain circumstances.(C) Transferable marriage/civil partnership allowance applies to recipient taxpayers who are not liable to income tax at the higher or additional rate or Scottish income tax at the higher, advanced or top rate.(D) If gross income exceeds £1,000, a deduction of £1,000 instead of actual expenses is permitted.
High Income Child Benefit Charge: 1% of benefit per £ 200 of adjusted net income between £ 60,000 and £ 80,000
| Class 1 (Employees) | 2025-26 | |
|---|---|---|
| Employee | Employer | |
| Main NIC rate | 8% | 15% |
| No NICs for employees generally on the first | £ 242 pw | £ 96 pw |
| No NICs for younger employees* on the first | £ 242 pw | £ 967 pw |
| NICs rate charged up to | £ 967 pw | no limit |
| 2% NICs on earnings over | £ 967 pw | N/A |
| Employment Allowance | £10,500 | |
| Per business – not available if sole employee is a director | ||
| Class 1A Employer | ||
| On most employees’ and directors’ taxable benefits | 15% | |
| Class 2 (Self-employed) | ||
| Flat rate (if earnings exceed £ 6,845) | £ 3.50 pw | |
| Small profits threshold | £ 6,845 | |
| Class 3 (Voluntary) | ||
| Class 3: Flat rate per week | £ 17.75 | |
| Class 4 (Self-employed) | ||
| On profits between £12,570 and £50,270 | 6% | |
| On profits over £50,270 | 2% | |
* No employer NICs on the first £967 pw for employees generally under 21 years, apprentices under 25 years and veterans in first 12 months of civilian employment. No employer NICs on the first £481 pw for employees at freeports and investment zones in Great Britain in the first 36 months of employment
| Details | 2024-25 | 2025-26 |
|---|---|---|
| Annual exempt amount | ||
| Individuals | £3,000 | £3,000 |
| Trusts | £1,500 (A) | £1,500 (A) |
| Tax rate | ||
| Basic rate taxpayers | 18% | 18% |
| Higher rate taxpayers | 24% (B) | 24% (B) |
| Trustees | 24% (B) | 24% (B) |
| Business Asset Disposal (capped at 1 million). You can claim a total of £1 million in Business Asset Disposal Relief over your lifetime. | 10% | 14% |
| Rate where business asset disposal/investors' relief applies | 10% | 14% (C) |
(A) Exempt amount subject to related trusts rules.(B) The capital gains tax rate for gains on carried interest is 28% for higher and additional rate taxpayers, trusts and personal representatives. The capital gains tax rate for gains on carried interest is 32% in 2025–26 for all taxpayers.(C) Increasing to 18% from 6 April 2026.
| Year to | 2024-25 | 2025-26 | |
|---|---|---|---|
| Corporation Tax (Main rate) | (A,C) | 25.00% | 25.00% |
| Corporation Tax (Small profits rate) | (B,C) | 19.00% | 19.00% |
| Loans to participators | 33.75% | 33.75% | |
| Corporation tax on restitution interest payments | (D) | 45% | 45% |
| Diverted profits tax | (E) | 31% | 31% |
(A) Applies to companies with taxable profits exceeding £250,000 (reduced proportionately for the number of associated companies) and taxable profits of certain investment companies beneath £250,000.(B) Applies to companies with taxable profits beneath £50,000 (reduced proportionately for the number of associated companies) except taxable profits of certain investment companies.(C) Marginal relief applies for profits between £50,000 and £250,000, with thresholds reduced proportionately for the number of associated companies.(D) Withheld at source.(E) Applies to profits of large entities diverted from the UK as a result of an avoided permanent establishment or transactions that lack economic substance (55% for such profits of entities subject to ring fence corporation tax).
| Details | 2025-26 |
|---|---|
| Standard rate | 20% |
| Reduced rate | 5% |
| Taxable Turnover Limits | |
| Annual turnover threshold for registration | £90,000 per annum |
| Annual turnover limit for deregistration | £88,000 per annum |
| Flat Rate Scheme (FRS) | |
| Flat rate scheme turnover limit | £150,000 |
| Cash accounting and Annual accounting schemes | |
| Annual taxable turnover to enter scheme | Up to £1.35m |
| Must leave scheme if annual taxable turnover | Exceeds £1.60m |
| State pension (per week) | 2024 – 25 | 2025 – 26 |
|---|---|---|
| Basic State Pension | £169.50 | £176.45 |
| New State Pension * | £221.20 | £230.25 |
* for those reaching State Pension age on or after 6 April 2016
Taxable benefit: List price of car multiplied by chargeable percentage.| CO2 g/km | Electric Range miles | 2024-25 | 2025-26 |
|---|---|---|---|
| 0 | N/A | 2% | 3% |
| 1-50 | >130 | 2% | 3% |
| 1-50 | 70-129 | 5% | 6% |
| 1-50 | 40-69 | 8% | 9% |
| 1-50 | 30-39 | 12% | 13% |
| 1-50 | <30 | 14% | 15% |
| 51-54 | N/A | 15% | 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%.
| FUEL BENEFIT | 2024-25 | 2025-26 |
|---|---|---|
| Multiply the CO2% used for the car benefit by | £27,800 | £28,200 |
| Vans – Fixed charge | £3,960 | £4,020 |
| Vans – Fuel benefit (if fuel is provided by the employer for private travel) | £757 | £769 |
| Zero-emission vans charged | £0 | £0 |
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).
The Child Trust Fund (CTF) is a long-term tax-free savings account for children born between 1 September 2002 and 2 January 2011.
The money in the CTF account belongs to the child but can’t be taken out until they are 18.
Parents, family and friends can add money to the account up to a limit of £9,000 in the 2024 to 2025 tax year.
You can’t apply for a new Child Trust Fund because the scheme is now closed. You can apply for a Junior ISA instead.JUNIOR ISAYou can’t have a Junior ISA as well as a Child Trust Fund. If you want to open a Junior ISA ask the provider to transfer the trust fund into it.
The money in the Junior ISA account belongs to the child. The child can take control of the account when they’re 16 but can’t withdraw until they are 18.
Your child can only have:
- 1 cash Junior ISA
- 1 stocks and shares Junior ISA
Anyone (including child) can pay money into a Junior ISA, but the total amount paid in can’t go over £9000 in the 2024 to 2025 tax year.
| (Effective from 01 December 2024) for employee private mileage reimbursement or employer reimbursement of business mileage in company cars | |
|---|---|
| Engine Size | Petrol – rate per mile |
| 1400cc or less | 12p |
| 1401cc – 2000cc | 14p |
| Over 2000cc | 23p |
| Engine Size | LPG – rate per mile |
|---|---|
| 1400cc or less | 11p |
| 1401cc – 2000cc | 13p |
| Over 2000cc | 21p |
| Engine Size | Diesel – rate per mile |
|---|---|
| 1600cc or less | 11p |
| 1601cc – 2000cc | 13p |
| Over 2000cc | 17p |
| 2023-24 | |
|---|---|
| Share incentive plans | |
| Employer contributions | £3,600 |
| Employer matching | (2:1) |
| Employee | £1,800 |
| Enterprise management incentive option value | £250,000 |
| Approved share option schemes option value | £30,000 |
| Savings-related share options per month (up to) | £500 |
| 2024-25 | 2025-26 | ||
|---|---|---|---|
| Overall limit | £20,000 | £20,000 | |
| Lifetime ISA | £4,000 | £4,000 | |
| Junior ISA | £9,000 | £9,000 | |
| Relief | |||
| EIS | 30% | £2,000,000 | £2,000,000 |
| Seed EIS (SEIS) | 50% | £200,000 | £200,000 |
| Venture Capital Trust (VCT) | 30% | £200,000 | £200,000 |
| Description | 2024-25 | 2025-26 | |
|---|---|---|---|
| Nil rate band (NRB) | (1) | £325,000 | £325,000 |
| NRB Residential enhancement (RNRB) | (2) | £175,000 | £175,000 |
| Tax rate on death | (3) | 40% | 40% |
| Tax rate on lifetime transfers to most trusts | 20% | 20% |
(1) 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.(2) RNRB is available for transfers of a main residence to (broadly) direct descendants. It tapers away at the rate of £1 for every £2 of estate value above £2m.(3) 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 UK domiciled transferor and foreign domiciled transferee, where maximum exemption £325,000.
100% Business Property Relief (BPR) for all shareholdings in qualifying unquoted trading companies, qualifying unincorporated trading businesses and certain farmland/buildings.
| 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. | |||||
| Plant and machinery allowances | Rate |
| Expenditure 1.4.25 - 31.3.26 (companies only) | |
| First-year allowance (main pool expenditure) | 100% |
| Super-deduction (main pool expenditure) | N/A |
| First-year allowance (special rate pool expenditure) | 50% |
| Annual Investment Allowance (AIA) | |
| expenditure 1.4.25 - 31.3.26 of up to £1m | 100% |
| New electric vans | 100% |
| Writing down allowance: general pool (reducing balance) | 18% |
| Writing down allowance: special rate pool (reducing balance) | 6% |
| Motor cars purchased | |||
|---|---|---|---|
| CO2 (g/km) | CO2 (g/km) | Allowance | |
| New cars only | Nil | up to 50 | 100% |
| In general pool | up to 50 | up to 110 | 18% |
| In special rate pool | above 50 | above 110 | 6% |
| Structures and buildings allowance | |
|---|---|
| Fixed deduction per annum | 3% |
| Payment dates | |||
|---|---|---|---|
| Self assessment | 2024/25 | 2025/26 | |
| 1st payment on account | 31 January | 2025 | 2026 |
| 2nd payment on account | 31 July | 2025 | 2026 |
| Balancing payment | 31 January | 2026 | 2027 |
| Capital Gains Tax (A) | 31 January | 2026 | 2027 |
| Other payment dates | 2024/25 | 2025/26 | |
| Class 1A NIC | 19 July | 2025 | 2026 |
| Class 1B NIC | 19 October | 2025 | 2026 |
| Filing deadlines | 2024/25 | 2025/26 | |
| Issue P60s to employees | 31 May | 2025 | 2026 |
| P11D, P11D(b) | 6 July | 2025 | 2026 |
| Self Assessment Tax Return (SATR) | |||
| Paper version | 31 October | 2025 | 2026 |
| Online SATR if outstanding tax to be included in 2024/25 PAYE code (if under £3,000) | 30 December | 2025 | 2026 |
| Online SATR | 31 January | 2026 | 2027 |
(A) 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
Corporation tax is due 9 months and 1 day from the end of the accounting period, unless a ‘large’ company paying by quarterly instalments.
A CGT return is due within 60 days of completion of sale of UK land and buildings by a non-resident and of sale of UK residential property with a tax liability by a UK resident.
| Working Tax Credit for those without Children (£) | ||
|---|---|---|
| Annual income (£) | Single person aged 25 or over working 30 or more hours a week | Couple (working adults aged 25 or over ) working 30 or more hours a week |
| *11,700 | 795 | 2,615 |
| 12,000 | 485 | 2,495 |
| 13,000 | 75 | 2,085 |
| 14,000 | - | 1,675 |
| 15,000 | - | 1,265 |
| 16,000 | - | 855 |
| 17,000 | - | 445 |
| 18,000 | - | 35 |
| 19,000+ | - | - |
* Someone aged 25 or over, working 30 hours a week on National Living Wage (Based on April 2017 rates) would earn £11,700 a year.
| If you are in work and responsible for at least one child | |||
|---|---|---|---|
| Working and Child Tax Credit (£) | |||
| Annual income (£) | One child / Young person | Two children / Young person | Three children / Young person |
| (*1,*2) 6,240 | 7,300 | 10,080 | 12,865 |
| 11,700 | 5,945 | 8,725 | 11,510 |
| 15,000 | 4,595 | 7,375 | 10,155 |
| 20,000 | 2,545 | 5,325 | 8,105 |
| 25,000 | 495 | 3,275 | 6,055 |
| 30,000 | – | 1,225 | 4,005 |
| 35,000 | – | – | 1,955 |
| 40,000+ | – | – | – |
*1 – Those with incomes of £6,240 a year are assumed to work part-time working between 16 and 29 hours a week).
*2 – In families with an income of £11,700 a year or more, at least one adult is assumed to be working 30 hours or more a week (consistent with a minimum adult living wage of £7.50 (based on April 2016 rates) for those aged 25 and over).
Note: If you have a child with a disability you may be entitled to more.
The maximum amounts may be higher if you are entitled to the disability or childcare elements of Working Tax Credit.
| If you do not qualify for working tax credit | |||
|---|---|---|---|
| Child Tax Credit Only (£) | |||
| Annual income (£) | One child | Two children | Three children |
| No income | 3,330 | 6,110 | 8,890 |
| 5,000 | 3,330 | 6,110 | 8,890 |
| 8,000 | 3,330 | 6,110 | 8,890 |
| 10,000 | 3,330 | 6,110 | 8,890 |
| 15,000 | 3,330 | 6,110 | 8,890 |
| 20,000 | 1,730 | 4,515 | 7,295 |
| 25,000 | – | 2,465 | 5,245 |
| 30,000 | – | 415 | 3,195 |
| 35,000 | – | – | 1,145 |
| 40,000 | – | – | – |
Note: If you have a child with a disability you may be entitled to more.
Using this table, if your income is £15,000 a year and you have 2 children but are not eligible for Working Tax Credit, you could get an annual Child Tax Credit award of £6,110, equivalent to £117.50 a week.
| Who is eligible for Jobseeker’s Allowance? |
|---|
To claim Jobseeker’s Allowance you need to be actively looking for work and:# over 18 but below State Pension age# unemployed or working fewer than 16 hours per week# living in England, Scotland or WalesUnder 18s: you can’t get Jobseeker’s Allowance, except in special circumstances.Under 20s: you can’t get Jobseeker’s Allowance while you are in education and your parents are receiving Child Benefit for you.Full time students: you can’t usually get Jobseeker’s Allowance until your course has officially finished – check the date with your college or university.
How much will you get paid?Depending on your circumstances you may be entitled to the following amounts:
| Age | Maximum weekly amount (2024-25) | Maximum weekly amount (2025-26) |
|---|---|---|
| Under 25 | up to £71.70 | up to £72.90 |
| 25 or over | up to £ 90.50 | up to £ 92.05 |
| Couples (both aged over 18) | up to £142.25 | up to £144.65 |
| 2024/25 | 2025/26 | |
|---|---|---|
| Lump sum and death benefit allowance | £1,073,100 | £1,073,100 |
| Lump sum allowance | £268,275 | £268,275 |
| Money purchase annual allowance | £10,000 | £10,000 |
| Annual Allowance (AA)* | £60,000 | £60,000 |
Annual allowance charge on excess is at applicable tax rate(s) on earnings
* Reduced by £1 for every £2 of adjusted income over £260,000 to a minimum of £10,000, subject to threshold income being over £200,000
| Transfers of property are subject to stamp duty land tax at the following rates (From 1st April 2025): | ||
|---|---|---|
| Residential | Standard Rate (Single) | Buy-to-let (Second home rate) |
| Value up to to £125,000 | 0% | 5% |
| Over £125,000* to £250,000 | 2% | 7% |
| Over £250,000 to £925,000 | 5% | 10% |
| Over £925,000 to £1,500,000 | 10% | 15% |
| Over £1,500,000** | 12% | 17% |
| Commercial | Tax Rate | |
| Value up to £150,000 | 0% | |
| Over £150,000 to £250,000 | 2% | |
| Over £250,000 | 5% |
The calculation of SDLT on purchase of non-residential property was changed from the whole transaction value to the same basis as residential (consideration falling within each band).
The rate of stamp duty / stamp duty reserve tax on the transfer of shares and securities is generally payable at 0.5 per cent. If you buy stocks and shares for £1,000 or less you don’t normally have to pay any stamp duty.
| New Leases |
|---|
Duty is charged according to the net present value of all the rental payments over the term of the lease (NPV), with a single rate of 1% on residential NPV’s over £125,000.
Duty is charged according to the net present value of all the rental payments over the term of the lease (NPV) at 1% on non-residential NPV’s over £150,000 and this rises to 2% on leases with an NPV greater than £5m.
VAT is excluded from treatment as consideration provided the landlord has not opted to charge VAT by the time the lease is granted.
| Lease premiums |
|---|
Duty on premiums is the same as for transfers of land.
| A statutory system of Approved Mileage Allowance Payments (AMAPs) applies for employees using their own vehicles for business journeys, as follows: | |
|---|---|
| Cars and vans: | |
| on the first 10,000 miles in the tax year | 45p per mile |
| on each additional mile above this | 25p per mile |
| Business passengers | 5p per mile |
| Motorcycles | 24p per mile |
| Bicycles | 20p per mile |
Unless the employee is reimbursed at a rate higher than the AMAP, the payments do not need to be reported on a P11D. If the employer pays less than these rates, it is possible for the employee to claim income tax relief for the shortfall.
Rates of up to 5p per mile, per passenger, are also tax and NICs free when paid for the carriage of fellow employees on the same business trip. This also covers volunteers who drive for hospital car services etc, even though they are not strictly employees.