UK Tax Rates 2026/27: Complete Guide
Our guide to the main UK tax rates and allowances for the 2026/27 tax year (6 April 2026 to 5 April 2027). It covers income tax, National Insurance, dividend tax, corporation tax, VAT, pension allowances, the Annual Tax on Enveloped Dwellings (ATED), Stamp Duty Land Tax and Capital Gains Tax. Whether you’re an individual or a business owner, staying informed helps you plan effectively and remain compliant with HMRC.
Figures are for England, Wales and Northern Ireland unless stated. Last reviewed October 2026.
Income Tax Rates
Income tax applies to earnings from employment, self-employment, pensions and property. The bands below apply in England, Wales and Northern Ireland and are frozen at these levels. Scottish taxpayers pay different rates on non-savings income.
| Tax band | Taxable income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
Note: The Personal Allowance is reduced by £1 for every £2 of income above £100,000 and is eliminated entirely at £125,140.
National Insurance Contributions (NICs)
National Insurance is paid by employees, employers, and the self-employed:
| Category | Threshold | Rate |
|---|---|---|
| Class 1 (employees) | Earnings above £12,570 a year (£242 a week) | 8% (2% above £50,270) |
| Class 1 (employers) | Earnings above £5,000 a year (£96 a week) | 15% |
| Class 2 (self-employed) | No longer compulsory. Voluntary if profits are below £7,105 | £3.65 per week (voluntary) |
| Class 4 (self-employed) | Profits above £12,570 | 6% (2% above £50,270) |
Dividend Tax
Dividends are taxed on the amount above the £500 dividend allowance, at a rate set by your income tax band. Add dividends to your other income to see which band they fall in. The rates rose by two percentage points at the basic and higher rates from 6 April 2026:
| Income tax band | Rate on dividends above the £500 allowance |
|---|---|
| Basic rate | 10.75% |
| Higher rate | 35.75% |
| Additional rate | 39.35% |
Corporation Tax
Corporation tax rates for the financial year starting 1 April 2026. The £50,000 and £250,000 limits are reduced for short accounting periods and shared between associated companies:
| Taxable profits | Rate |
|---|---|
| Up to £50,000 (small profits rate) | 19% |
| £50,001 to £250,000 | 25% less Marginal Relief (profits in this band are taxed at an effective marginal rate of 26.5%) |
| Over £250,000 (main rate) | 25% |
VAT
VAT rates and thresholds for 2026/27. You must register if your taxable turnover for the last 12 months goes over £90,000, or you expect it to in the next 30 days:
| VAT | 2026/27 |
|---|---|
| Standard rate | 20% |
| Reduced rate | 5% |
| Zero rate | 0% |
| Registration threshold (taxable turnover, rolling 12 months) | £90,000 |
| Deregistration threshold | £88,000 |
Pension Contribution Limits
Pensions offer tax-efficient ways to save for retirement. The key limits for 2026/27 are:
• Annual Allowance: £60,000, tapered down to a minimum of £10,000 where adjusted income exceeds £260,000.
• Lifetime Allowance: abolished from 6 April 2024. It was replaced by the Lump Sum Allowance (£268,275) on tax-free cash and the Lump Sum and Death Benefit Allowance (£1,073,100).
Annual Tax on Enveloped Dwellings (ATED)
ATED applies to companies owning UK residential properties valued over £500,000. Charges for the period 1 April 2026 to 31 March 2027:
| Property value | Annual charge 2026/27 |
|---|---|
| £500,001 to £1 million | £4,600 |
| £1,000,001 to £2 million | £9,450 |
| £2,000,001 to £5 million | £32,200 |
| £5,000,001 to £10 million | £75,450 |
| £10,000,001 to £20 million | £151,450 |
| Over £20 million | £303,450 |
Stamp Duty Land Tax (SDLT)
For residential property purchases in England and Northern Ireland, each rate applies to the portion of the price within that band. The additional property rate applies if you will own more than one residential property. First-time buyers pay no SDLT up to £300,000 and 5% on the portion from £300,001 to £500,000 (no relief above £500,000). Non-UK residents pay a further 2% surcharge.
| Portion of property price | Standard rate | Additional property rate |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,001 to £250,000 | 2% | 7% |
| £250,001 to £925,000 | 5% | 10% |
| £925,001 to £1.5 million | 10% | 15% |
| Over £1.5 million | 12% | 17% |
Capital Gains Tax (CGT)
Capital Gains Tax is due on gains from selling assets such as shares, second homes and business assets. Since 30 October 2024 the same rates apply to residential property and other assets.
| Taxpayer or relief | Rate on gains 2026/27 |
|---|---|
| Basic rate taxpayer (gains within the basic rate band) | 18% |
| Higher or additional rate taxpayer | 24% |
| Business Asset Disposal Relief (£1 million lifetime limit) | 18% |
| Trustees and personal representatives | 24% |
| Annual exempt amount | £3,000 |
How We Can Help
At Accountax, we provide expert advice to simplify your tax obligations and optimize your financial planning. Whether you need assistance with income tax, NICs, SDLT, or ATED, our team is here to help.