Article last updated 18 December 2025.
Please bear in mind that the details on this page are subject to relevant legislation and for information only. Always seek professional advice before acting.
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| Tax measure | 2026/2027 | 2025/2026 |
|---|---|---|
| Personal allowance* | £12,570 | £12,570 |
| Marriage/civil partners’ transferable allowance | £1,260 | £1,260 |
|
Married couple’s/civil partners’ allowance Maximum |
TBA TBA |
£11,270 £4,360 |
| Blind person’s allowance | TBA | £3,130 |
| Rent-a-room relief | £7,500 | £7,500 |
| Property allowance and trading allowance (each) | £1,000 | £1,000 |
* Personal allowance reduced by £1 for every £2 of adjusted net income over £100,000
† Reduced by £1 for every £2 of adjusted net income over TBA (£37,700 for 2025/26), until the minimum is reached.
| Tax measure | 2026/2027 | 2025/2026 |
|---|---|---|
| 20% basic rate on taxable income up to | £37,700 | £37,700 |
| 40% higher rate on next slice of income over | £37,700 | £37,700 |
| 45% additional rate on income over | £125,140 | £125,140 |
| Tax measure | 2026/2027 | 2025/2026 |
|---|---|---|
| 19% starter rate on taxable income up to | TBA | £2,827 |
| 20% basic rate on next slice up to | TBA | £14,921 |
| 21% intermediate rate on next slice up to | TBA | £31,092 |
| 42% higher rate on next slice up to | TBA | £62,430 |
| 45% advanced rate on next slice up to | TBA | £125,140 |
| 48% top rate on income over | TBA | £125,140 |
The Scottish Budget will be published on 13 January 2026
| Tax measure | 2026/2027 | 2025/2026 |
|---|---|---|
| Starting rate at 0% on band of savings income up to** | £5,000 | £5,000 |
| Personal savings allowance at 0%: Basic rate Higher rate |
£1,000 £500 £0 |
£1,000 £500 £0 |
| Dividend allowance at 0%: All individuals | £500 | £500 |
| Tax rates on dividend income: Basic rate Higher rate Additional rate |
10.75% 35.75% 39.35% |
8.75% 33.75% 39.35% |
| Trusts: Income exemption generally | £500 | £500 |
| Rate applicable to trusts: Dividends Other income |
39.35% 45% |
39.35% 45% |
** Not available if taxable non-savings income exceeds the starting rate band
1% of benefit per £200 of adjusted net income between £60,000 and £80,000
| Tax measure | Annual | Weekly |
|---|---|---|
| New state pension | TBA | TBA |
| Basic state pension – single person* | TBA | TBA |
| Basic state pension – spouse/civil partner* | TBA | TBA |
* State pension age reached before 6/4/16
| Tax measure | 2026/2027 | 2025/2026 |
|---|---|---|
| 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* Annual allowance charge on excess is at applicable tax rate(s) on earnings |
£60,000 | £60,000 |
* 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
| Tax measure | 2026/2027 | 2025/2026 |
|---|---|---|
| Total Individual Savings Account (ISA) limit, excluding Junior ISAs (JISAs) Lifetime ISA JISA/Child Trust Fund |
£20,000 £4,000 £9,000 |
£20,000 £4,000 £9,000 |
| Venture Capital Trust (VCT) up to £200,000 | 20% | 30% |
| Enterprise Investment Scheme (EIS) at 30%* EIS eligible for CGT deferral relief |
£2,000,000 No limit |
£2,000,000 No limit |
| Seed EIS (SEIS) at 50% SEIS CGT reinvestment relief |
£200,000 50% |
£200,000 50% |
* Above £1,000,000 investment must be in knowledge-intensive companies
| Tax measure | 2026/2027 | 2025/2026 |
|---|---|---|
| Annual exemption: Individuals, estates, etc Trusts generally |
£3,000 £1,500 |
£3,000 £1,500 |
| Below UK higher rate band Tax rate | 18% | 18% |
| Within UK higher and additional rate bands Tax rate | 24% | 24% |
| Carried interest (all tax bands) Tax rate | N/A | 32% |
| Trusts and estates Tax rate | 24% | 24% |
| Business Asset Disposal Relief 18% (14% 25/26) on lifetime limit of £1,000,000 for trading businesses and companies (minimum 5% participation) held for at least 2 years |
||
| Class 1 | Employee | Employer |
|---|---|---|
| NICs 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 |
* 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 the first 36 months of employment.
| Employment allowance Per business – not available if sole employee is a director |
£10,500 |
| Class 1A Employer On most employees’ and directors’ taxable benefits |
15% |
|
Class 2 Self-employed Flat rate per week (voluntary) Small profits threshold |
£7,105 |
|
Class 4 Self-employed £12,570 to £50,270: Over £50,270: |
2% |
| Class 3 Voluntary flat rate per week |
£18.40 (£956.80 pa) |
Taxable amount based on original list price and CO2 emissions in g/km.
| Zero emission cars | 4% |
|
Range – electric-only miles |
|||||
|---|---|---|---|---|---|
| < 30 | 30 - 39 | 40 - 69 | 70 - 129 | 130+ | |
| Petrol and diesel hybrids with CO2 emissions 1–50g/km | 16% | 14% | 10% | 7% | 4% |
| 51 - 54 (g/km CO2) | 55 & over (g/km CO2) | |
|---|---|---|
| All non-diesel cars over 50g/km CO2 | 17% | 18%* - 37% |
* Increased by 1% increments up to the maximum 37%
Diesels not meeting RDE2: add 4% to non-diesel rates, up to 37%
| Fuel benefit – taxable amount for private us | 26/27 | 25/26 |
| CO2 % charge used for car benefit multiplied by | TBA | £28,200 |
| 26/27 | 25/26 | |
|---|---|---|
| Zero emission: chargeable amount | Nil | Nil |
| Other vans: chargeable amount | TBA | £4,202 |
| Fuel: chargeable amount | TBA | £769 |
| Cars and vans first 10,000 miles | 45p per mile | then 25p per mile |
| Qualifying passenger | 5p per mile | |
| Motorcycles | 24p per mile | Bicycles 20p per mile |
| Year to 31/3/27 and 31/3/26 Profits | Effective rate | Diverted profits |
|---|---|---|
| £0 - £50,000 | 19.0% | 31% |
| £50,001 - £250,000 | 26.5% | 31% |
| £250,001 and above | 25.0% | 31% |
| Loans to participators | 33.75% |
| Stamp Duty and SDRT*: Stocks and marketable securities | 0.5% | |||
| Additional residential and all corporate residential properties £40,000 or more | add 5% to SDLT rates, 8% to LBTT and 5% to most LTT rates | |||
| England & N Ireland – Stamp Duty Land Tax (SDLT) on slices of value | Residential property Up to £125,000 £125,001 - £250,000 £250,001 - £925,000 £924,001 - £1,500,000 Over £1,500,000 |
% 0 2 5 10 12 |
Commercial property ** Up to £150,000 £150,001 - £250,000 Over £250,000 |
% 0 2 5 |
| First time buyers | 0% on first £300,000 for properties up to £500,000 | |||
| Non-resident purchasers | 2% surcharge on properties £40,000 or more | |||
| Residential properties bought by companies etc over £500,000 | 17% of total consideration, subject to certain exemptions | |||
| Scotland – Land and Buildings Transaction Tax (LBTT) on slices of value | Residential property Up to £145,00 £145,001 - £250,000 £250,001 - £325,000 £325,001 - £750,000 Over £750,000 |
% 0 2 5 10 12 |
Commercial property ** Up to £150,000 £150,001 - £250,000 Over £250,000 |
% 0 1 5 |
| First time buyers | 0% on the first £175,000 | |||
| Wales – Land Transaction Tax (LTT) on slices of value | Residential property Up to £225,000 £225,001 - £400,000 £400,001 - £750,000 £750,001 - £1,500,000 Over £1,500,000 |
% 0 6 7.5 10 12 |
Commercial property ** Up to £225,000 £225,001 - £250,000 £250,001 - £1,000,000 Over £1,000,000 |
% 0 1 5 6 |
* 0% SDRT for transfers of newly UK listed securities from 27 November 2025
** 0% for freeport and investment zone qualifying property
| 26/27 and 25/26 | |
|---|---|
| Nil-rate band*/residence nil-rate band*† | £325,000/£175,000 |
| Rate of tax on excess/if at least 10% net estate left to charity |
40%/36% |
| Lifetime transfers to and from certain trusts | 20% |
| Non-long-term resident spouse/civil partner exemption | £325,000 |
* Up to 100% of the unused proportion can be claimed on the surviving spouse’s/civil partner’s death
† Estates over £2,000,000: reduced by 50% of the excess over £2,000,000
| Reliefs | Businesses, unlisted shares, some farms | AIM shares | Certain other assets |
| 26/27 | 100% up to a maximum of £1,000,000, with 50% thereafter * | 50% | 50% |
| 25/26 | 100% | 100% | 50% |
* Transferable between spouses and civil partners
£3,000 per donor and £250 per donee.
Years 0–3 full 40% rate, then 8% less for each year until 0% at 7 or more years.
| Plant & machinery (P&M) 100% annual investment allowance (1st year) | £1,000,000 |
| P&M allowance for companies (1st year) * | 100% |
| Special rate P&M allowance for companies (1st year) * | 50% |
| P&M allowance for unincorporated businesses (1st year)from 1 January 2026 * | 40% |
| P&M ** | 14% |
| Patent rights and know-how ** | 25% |
| Special rate P&M e.g. long-life assets and integral features of buildings ** | 6% |
| Structures and buildings (straight line) † | 3% |
* New and unused only
** Annual reducing balance
† 10% for freeports and investment zones
| CO2 emissions of g/km | 0* | 1-50 | Over 50 |
| Capital allowance | 100% first year | 18% pa ** | 6% pa ** |
* New and unused only
** Annual reducing balance
| Capital expenditure | 100% |
| R&D merged scheme | 20% |
| R&D intensive SME payable credit | 14.5% |
| R&D intensive SME intensity ratio | 30% |
| Standard rate | 20% |
| Domestic fuel | 5% |
| Installation of energy saving materials (except Northern Ireland) | 0% |
| Registration level | £90,000 |
| Deregistration | £88,000 |
| Flat rate scheme turnover limit | £150,000 |
| Cash and annual accounting schemes turnover limit | £1,350,000 |
| 31 Jan in tax year | Normally 50% of previous year’s income tax (less tax deducted at source) and class 4 NICs |
| Following 31 July | Normally 50% of previous year’s income tax (less tax deducted at source) and class 4 NICs |
| Following 31 Jan | Balance of income tax, class 4 NICs and CGT, plus class 2 NICs paid voluntarily |
| On death | Normally 6 months after end of month of death |
| Lifetime transfer 6 April–30 September | 30 April in following year |
| Lifetime transfer 1 October–5 April | months after end of month of transfer |
Report and pay within 60 days of completion of conveyance of the property.
| Statutory Pay Rates | Based on minimum average earnings of at least TBA pw: |
|---|---|
| Statutory Sick Pay | TBA standard rate |
| Statutory Maternity Pay/Statutory Adoption Pay | First 6 weeks – 90% of average weekly pay Next 33 weeks – 90% of average weekly pay up to TBA |
| Statutory Paternity Pay | 90% of average weekly pay up to TBA |
| Shared Parental Pay | Up to 37 weeks: 90% of average weekly pay up to TBA |
| Child Benefit (see ‘Income Tax – High Income Child Benefit Charge’) | First or only child: TBA Each subsequent child: TBA |
| Scottish Child Payment | For certain benefit claimants, per child under 16: TBA |
| Year ending 31/3/27 | NLW | NMW | NMW |
|---|---|---|---|
| Aged | 21 and over | 18-20 | Under 18 / apprentice |
| £/hour | £12.71 | £10.85 | £8.00 |
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