A concise guide to UK personal and business tax rates, thresholds, and allowances for both the 2025/26 and 2026/27 tax years.
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This page gives business owners a clear, straightforward overview of the main tax rates and reliefs in place this year and next, helping you understand how the rules affect your plans and your overall tax position.
No sign up, no subscription. Just the information you need to make better decisions.
*Your personal allowance is reduced by £1 for every £2 of adjusted net income that exceeds £100,000.
**This is not available if taxable non-savings income is greater than the starting rate band.
High Income Child Benefit Charge:
This is 1% of benefit per £200 adjusted net income between £60k and £80k.
Annual allowance charge on excess is at applicable tax rate(s) on earnings.
* The annual allowance is reduced by £1 for every £2 of adjusted income over £260k (to a minimum of £10,000). This is subject to your threshold income being over £200,000.
*State pension age reached before 6/4/16
*Above £1,000,000, the investment must be in companies considered "knowledge-intensive".
*Employers pay no employer NICs on the first £50,270 per year of earnings for employees who are generally under age 21, apprentices under age 25, and veterans during their first 12 months of civilian employment.
Employment Allowance: £10,500 per business. This allowance is unavailable where the business’s only employee is a director. The Employment Allowance is shared between connected companies, which includes group companies and may apply more widely depending on control and ownership.
Business Asset Disposal Relief applies a tax rate of 18% (reduced to 14% from 2025/26) on qualifying gains, up to a lifetime limit of £1,000,000. It is available for trading businesses and for shareholders with at least a 5% stake in a trading company, provided the assets or shares have been held for a minimum of two years.
*Up to 100% of any unused proportion may be transferred and claimed on the death of a surviving spouse or civil partner.
†For estates valued above £2,000,000, the relief is reduced by 50% of the amount exceeding £2,000,000.
*This relief is transferable between spouses and civil partners.
Annual gift exemptions include £3,000 per donor or £250 per recipient.
Lifetime gifts made between 3 & 7 years before death may be subject to tax on death. Where they are chargeable to IHT, relief may be available through taper relief to reduce the tax charge on the gift from the full rate of 40%. Taper relief reduce the tax liability on the gifts by the following rates:
First-time buyers pay 0% stamp duty on the first £300,000 of a property purchase, provided the property value does not exceed £500,000.
Non-resident purchasers incur a 2% surcharge on properties costing £40,000 or more.
Residential properties purchased by companies and similar entities for more than £500,000 are charged 17% of the total consideration, subject to specific exemptions.
Stamp duty on stocks and marketable securities is 0.5%.
From 27 November 2025, transfers of newly UK-listed securities are exempt from SDRT (0% rate).
For additional residential properties and all corporate residential properties costing £40,000 or more, add:
†A 0% rate applies to qualifying property located within freeports and investment zones.
First-time buyers pay 0% tax on the first £175,000 of the property price.
Large Companies: Companies are required to pay Corporation Tax by quarterly instalments if their taxable profits exceed £1.5 million in an accounting period. These payments are normally made in four instalments, starting partway through the accounting period rather than after the year end.
Very Large Companies: Where taxable profits exceed £20 million, companies are classified as very large and must pay Corporation Tax earlier under the accelerated quarterly instalment regime. Instalments are paid sooner and more evenly across the accounting period.
See HMRC guidance for more information.
The profit thresholds shown in the table above (£50,000 and £250,000) are shared between associated companies. This means that where a company has one or more associated companies, the thresholds are divided by the number of associated companies plus one.
The same principle applies to the £1.5 million (large company) and £20 million (very large company) limits for quarterly instalment payments. As the number of associated companies increases, the effective thresholds reduce accordingly, potentially bringing companies into the instalment payment regime at much lower profit levels..
This information is provided for general guidance only and does not constitute, and should not be treated as, professional advice. While every effort has been made to ensure accuracy, the figures, thresholds, and rules summarised above remain subject to change pending relevant legislation, regulatory updates, and future government announcements.
Taxation is dependent on individual circumstances and may be subject to change. No action should be taken without seeking appropriate professional advice based on your specific situation. Neither the publisher nor its advisers accept any liability for any loss arising from reliance on the information contained herein.
For information only. Always seek professional advice before acting.
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