{"currency":"GBP","country":"GB","taxYear":"2025-26","taxYearStart":"2025-04-06","taxYearEnd":"2026-04-05","lastUpdated":"2026-05-17","publisher":{"name":"Holloway Davies","url":"https://www.hollowaydavies.co.uk"},"corporationTax":{"smallProfitsRate":0.19,"smallProfitsUpperLimit":50000,"mainRate":0.25,"mainRateLowerLimit":250000,"marginalRelief":{"lowerLimit":50000,"upperLimit":250000,"standardFraction":"3/200"},"associatedCompanyRule":"Limits divided by (1 + number of associated companies)."},"dividendTax":{"allowance":500,"basicRate":0.0875,"higherRate":0.3375,"additionalRate":0.3935},"incomeTax":{"personalAllowance":12570,"personalAllowanceTaperFrom":100000,"personalAllowanceFullyTaperedAt":125140,"basicRate":0.2,"basicRateUpperLimit":50270,"higherRate":0.4,"higherRateUpperLimit":125140,"additionalRate":0.45},"nationalInsurance":{"employee":{"primaryThreshold":12570,"upperEarningsLimit":50270,"mainRate":0.08,"upperRate":0.02},"employer":{"secondaryThreshold":5000,"rate":0.15,"employmentAllowance":10500},"selfEmployed":{"smallProfitsThreshold":6845,"lowerProfitsThreshold":12570,"class2VoluntaryWeekly":3.5,"class4MainRate":0.06,"class4UpperRate":0.02}},"capitalGainsTax":{"annualExemption":3000,"annualExemptionTrusts":1500,"nonResidential":{"basicRate":0.18,"higherRate":0.24},"residential":{"basicRate":0.18,"higherRate":0.24},"badr":{"name":"Business Asset Disposal Relief","lifetimeLimit":1000000,"rate_2025_26":0.14,"rate_2026_27_from":0.18,"rateChangeDate":"2026-04-06","qualifyingPeriodYears":2},"investorsRelief":{"lifetimeLimit_from_2024":1000000,"rate_2025_26":0.14,"rate_2026_27_from":0.18}},"vat":{"standardRate":0.2,"reducedRate":0.05,"zeroRate":0,"registrationThreshold":90000,"deregistrationThreshold":88000,"flatRateLimitedCostTrader":0.165,"notes":"Threshold increased from £85,000 to £90,000 on 1 April 2024."},"rdTaxCredits":{"merged":{"name":"Merged R&D Scheme (RDEC for accounting periods on/after 1 April 2024)","headlineCreditRate":0.2,"effectiveAfterTaxBenefit":0.15,"payeNicCap":"PAYE/NIC cap applies; refundable element limited."},"erisSme":{"name":"Enhanced R&D Intensive Support (ERIS) for loss-making SMEs","intensityThreshold":0.3,"enhancementRate":0.86,"payableCreditRate":0.145}},"mtdItsa":{"phase1Date":"2026-04-06","phase1Threshold":50000,"phase2Date":"2027-04-06","phase2Threshold":30000,"phase3Date":"2028-04-06","phase3Threshold":20000},"pensions":{"annualAllowance":60000,"moneyPurchaseAnnualAllowance":10000,"taperedThresholdIncome":200000,"taperedAdjustedIncome":260000,"minTaperedAnnualAllowance":10000,"lumpSumAllowance":268275,"lumpSumAndDeathBenefitAllowance":1073100},"isaAllowance":{"annual":20000,"lifetimeIsaAnnual":4000,"juniorIsaAnnual":9000},"studentLoans":{"planOneThreshold":26065,"planOneRate":0.09,"planTwoThreshold":28470,"planTwoRate":0.09,"planFourThreshold":32745,"planFourRate":0.09,"planFiveThreshold":25000,"planFiveRate":0.09,"postgraduateThreshold":21000,"postgraduateRate":0.06},"inheritanceTax":{"nilRateBand":325000,"residenceNilRateBand":175000,"rate":0.4,"reducedRate":0.36,"reducedRateCharityGiftThreshold":0.1,"businessRelief":{"unquotedShares":1,"qualifyingBusinessAssets_above_1m_from_apr_2026":0.5,"apr2026CapNote":"From 6 April 2026: 100% BPR/APR capped at £1m combined, then 50% thereafter."}},"sources":[{"title":"Rates and thresholds for employers 2025 to 2026","url":"https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2025-to-2026","publisher":"HMRC"},{"title":"Income Tax rates and Personal Allowances","url":"https://www.gov.uk/income-tax-rates","publisher":"HMRC"},{"title":"Corporation Tax rates and allowances","url":"https://www.gov.uk/government/publications/rates-and-allowances-corporation-tax","publisher":"HMRC"},{"title":"Capital Gains Tax: rates of tax","url":"https://www.gov.uk/capital-gains-tax/rates","publisher":"HMRC"},{"title":"Making Tax Digital for Income Tax","url":"https://www.gov.uk/government/collections/making-tax-digital-for-income-tax","publisher":"HMRC"},{"title":"Research and Development tax relief reform","url":"https://www.gov.uk/government/publications/research-and-development-tax-relief-reform","publisher":"HMRC"}],"licence":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/","note":"Attribution: Holloway Davies, https://www.hollowaydavies.co.uk/uk-tax-rates"}}