Huddersfield (Registered Office): Bank Chambers, Market Street, Huddersfield HD1 2EW 01484 534431 Leeds: 7 Park Row, Leeds LS1 5HD 0113 5212515 simpson-wood.co.uk 2026/27 Tax Tables
INCOME TAX 26/27 25/26 Main personal allowances and reliefs Personal allowance* £12,570 £12,570 Marriage/civil partners’ transferable allowance £1,260 £1,260 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 UK taxpayers excluding Scottish taxpayers’ non-dividend, non-savings income 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 Scottish taxpayers – non-dividend, non-savings income 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 All UK taxpayers Starting rate at 0% on band of savings income up to** £5,000 £5,000 Personal savings allowance at 0%: Basic rate £1,000 £1,000 Higher rate £500 £500 Additional rate £0 £0 Dividend allowance at 0%: All individuals £500 £500 Tax rates on dividend income: Basic rate 10.75% 8.75% Higher rate 35.75% 33.75% Additional rate 39.35% 39.35% Trusts: Income exemption generally £500 £500 Rate applicable to trusts: Dividends 39.35% 39.35% Other income 45% 45% **Not available if taxable non-savings income exceeds the starting rate band High Income Child Benefit Charge 1% of benefit per £200 of adjusted net income between £60,000 and £80,000
STATE PENSIONS Annual Weekly New state pension £12,547.60 £241.30 Basic state pension – single person* £9,614.80 £184.90 Basic state pension – spouse/civil partner* £5,759.00 £110.75 *State pension age reached before 6/4/16 REGISTERED PENSIONS 26/27 25/26 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* £60,000 £60,000 Annual allowance charge on excess is at applicable tax rate(s) on earnings *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 INCENTIVISED INVESTMENTS 26/27 25/26 Total Individual Savings Account (ISA) limit, excluding Junior ISAs (JISAs) £20,000 £20,000 Lifetime ISA £4,000 £4,000 JISA/Child Trust Fund £9,000 £9,000 Venture Capital Trust (VCT) up to £200,000 20% 30% Enterprise Investment Scheme (EIS) at 30%* £2,000,000 £2,000,000 EIS eligible for CGT deferral relief No limit No limit Seed EIS (SEIS) at 50% £200,000 £200,000 SEIS CGT reinvestment relief 50% 50% *Above £1,000,000 investment must be in knowledge-intensive companies CAPITAL GAINS TAX 26/27 25/26 Annual exemption: Individuals, estates, etc £3,000 £3,000 Trusts generally £1,500 £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 CORPORATION TAX Profits Effective rate Diverted profits Year to 31/3/27 and 31/3/26 £0–£50,000 19.0% £50,001–£250,000 26.5% 31% £250,001 and above 25.0% Loans to participators 33.75% }
NATIONAL INSURANCE CONTRIBUTIONS 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 year 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 £10,500 Per business – not available if sole employee is a director Class 1A Employer On most employees’ and directors’ taxable benefits 15% Class 2 Self-employed Flat rate per week (voluntary) £3.65 (£189.80 pa) Small profits threshold £7,105 Class 4 Self-employed On annual profits of £12,570 to £50,270: 6% Over £50,270: 2% Class 3 Voluntary flat rate per week £18.40 (£956.80 pa) CAR BENEFITS Taxable amount based on original list price and CO2 emissions in g/km. Zero emission cars 4% Petrol and diesel hybrids with CO2 emissions 1–50g/km Range – electric-only miles <30 30–39 40–69 70–129 130+ 16% 14% 10% 7% 4% All non-diesel cars over 50g/km CO2 51–54 55 & over 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 use 26/27 25/26 CO2 % charge used for car benefit multiplied by TBA £28,200 VANS – FOR PRIVATE USE 26/27 25/26 Zero emission: chargeable amount Nil Nil Other vans: chargeable amount TBA £4,020 Fuel: chargeable amount TBA £769
STAMP DUTIES AND PROPERTY TRANSACTION TAXES Stamp Duty and SDRT*: Stocks and marketable securities 0.5% *0% SDRT for transfers of newly UK listed securities from 27 November 2025 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 % Commercial property† % Up to £125,000 0 Up to £150,000 0 £125,001–£250,000 2 £150,001–£250,000 2 £250,001–£925,000 5 Over £250,000 5 £925,001–£1,500,000 10 Over £1,500,000 12 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 property 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 % Commercial property† % Up to £145,000 0 Up to £150,000 0 £145,001–£250,000 2 £150,001–£250,000 1 £250,001–£325,000 5 Over £250,000 5 £325,001–£750,000 10 Over £750,000 12 First time buyers: 0% on the first £175,000 Wales – Land Transaction Tax (LTT) on slices of value Residential property % Commercial property† % Up to £225,000 0 Up to £225,000 0 £225,001–£400,000 6 £225,001–£250,000 1 £400,001–£750,000 7.5 £250,001–£1,000,000 5 £750,001–£1,500,000 10 Over £1,000,000 6 Over £1,500,000 12 †0% for freeport and investment zone qualifying property INHERITANCE TAX 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 Certain other shares 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 Annual exempt gifts of: £3,000 per donor £250 per donee Tapered tax charge on lifetime gifts between 3 and 7 years of death Years 0–3 full 40% rate, then 8% less for each year until 0% at 7 or more years.
MAIN CAPITAL AND OTHER ALLOWANCES 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 all 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% Motor cars 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 †10% for freeports and investment zones Research and development (R&D) – capital expenditure 100% R&D merged scheme 20% R&D intensive SME payable credit 14.5% R&D intensive SME intensity ratio 30% VALUE ADDED TAX 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 MAIN DUE DATES FOR TAX PAYMENT Income tax, NICs and capital gains tax – Self assessment 31 January in tax year Normally 50% of previous year’s income tax Following 31 July (less tax deducted at source) and class 4 NICs Following 31 January Balance of income tax, class 4 NICs and CGT, plus class 2 NICs paid voluntarily Inheritance tax 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: 6 months after end of month of transfer Capital gains tax – residential UK property Report and pay within 60 days of completion of conveyance of the property Corporation tax – Self assessment • Profits under £1,500,000: 9 months + 1 day after end of accounting period • Profits £1,500,000–£20,000,000: normally payable in 7th, 10th, 13th and 16th months after start of the accounting period • Profits over £20,000,000: normally payable in 3rd, 6th, 9th and 12th months after start of the accounting period • Growing companies: no instalments where profits are £10,000,000 or less and the company was not a large company for the previous year. } © Copyright 26 November 2025 Subject to relevant legislation For information only Always seek professional advice before acting
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