What Are My UK Tax and Allowances for 2025–26?
Here’s a helpful breakdown of the key tax rates, thresholds, and allowances for individuals in the UK for the tax year 6 April 2025 to 5 April 2026.
🌟 Personal Tax Allowances
Everyone gets a Personal Allowance, which is the amount you can earn before paying income tax. This may increase if you’re registered blind or eligible for the Marriage Allowance, or decrease if your income is over £100,000.
Personal Allowances
| Allowance | 2024/25 | 2025/26 |
|---|---|---|
| Personal Allowance | £12,570 | £12,570 |
| Blind Person’s Allowance | £3,070 | £3,070 |
| Transferrable Allowance | £1,260 | £1,260 |
Marriage Allowance: If one spouse earns less than the Personal Allowance, they can transfer £1,260 of it to the other (if the other pays the basic rate). This can save couples up to £252 per year.
Blind Person’s Allowance: If you’re registered blind, your allowance increases by £3,070. If unused, it can be transferred to a spouse or civil partner.
👵 Married Couple’s Allowance (Born before 6 April 1935)
This allowance applies if one of you was born before 6 April 1935. It can reduce your tax bill by 10% of the allowance value.
| Allowance | 2024/25 | 2025/26 |
|---|---|---|
| Maximum Married Couple’s Allowance | £11,080 | £11,080 |
| Minimum Married Couple’s Allowance | £4,280 | £4,280 |
Tax saving: Between £427 and £1,108.50 depending on income.
💸 Personal Savings Allowance
This allowance lets you earn interest from savings tax-free, depending on your income tax band:
| Income Tax Band | Savings Allowance |
|---|---|
| Basic Rate | £1,000 |
| Higher Rate | £500 |
| Additional Rate | £0 |
Note: Cash ISA interest is always tax-free and doesn’t count towards this allowance.
📊 Income Tax Rates (England, Wales & NI)
These rates apply to income from employment, pensions, property, savings, and side income.
| Tax Band | Taxable Income | Tax Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic Rate | £12,571 – £50,270 | 20% |
| Higher Rate | £50,271 – £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
These thresholds are frozen until April 2028.
🏴 Scottish Income Tax Rates
| Tax Band | Taxable Income | Scottish Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Starter | £12,571 – £14,876 | 19% |
| Basic | £14,877 – £26,561 | 20% |
| Intermediate | £26,562 – £43,662 | 21% |
| Higher | £43,663 – £75,000 | 42% |
| Advanced | £75,001 – £125,140 | 45% |
| Top | Over £125,140 | 48% |
🧾 National Insurance Contributions (NICs)
If you’re working or self-employed, you’ll likely pay NICs.
| Class | Who Pays | 2025/26 Details |
|---|---|---|
| Class 1 | Employees | 8% on £242–£967/week, then 2% above £967 |
| Class 2 | Self-employed | £3.45/week over £6,725 income (voluntary from 2024) |
| Class 3 | Voluntary top-up | £17.45/week to fill gaps in pension contributions |
| Class 4 | Self-employed (high income) | 6% on £12,570–£50,270 profits, 2% above |
📈 Wealth Taxes
📉 Dividend Tax
| Tax Band | Dividend Tax Rate |
|---|---|
| Basic Rate | 8.75% |
| Higher Rate | 33.75% |
| Additional Rate | 39.35% |
- Dividend Allowance for 2025/26: £500
- Dividends within ISAs or pensions are tax-free.
💎 Capital Gains Tax (CGT)
| Income Band | CGT Rate |
|---|---|
| Basic Rate | 18% |
| Higher/Additional | 24% |
- Annual CGT Allowance: £3,000
- Applies to gains from shares, property (not your main home), and valuables.
- ISAs and pensions are CGT-exempt.
🪦 Inheritance Tax (IHT)
| Threshold | Value |
|---|---|
| Standard Nil-Rate Band | £325,000 |
| Residence Nil-Rate Band | £175,000 |
| Combined Allowance for Couples | £1,000,000 |
- IHT Rate: 40% on the estate value above the thresholds
- Unused allowances can be transferred to a surviving spouse or civil partner.
💼 Saving and Investment Allowances
Tax-free savings limits for 2025/26:
| Account Type | Limit |
|---|---|
| ISA | £20,000 |
| Junior ISA | £9,000 |
| Child Trust Fund | £9,000 |
| Pension (Annual Allowance) | 100% of earnings up to £60,000 |
- Pension limit includes your contributions, employer top-ups, and tax relief.
- Exceeding the limit could result in a tax charge.
Need help planning your tax-efficient future?
Get in touch with Francis Accountancy for expert advice tailored to your personal and business needs.