Purpose
This note summarises the main UK tax rates and thresholds and highlights what has changed between 2024–25 and 2025–26. It is intended as a high-level reference and not a substitute for tailored advice.
United Kingdom
National Insurance (Employees and Employers)
| Item | 2024–25 | 2025–26 |
|---|
| Employee NI – main rate | 8% | 8% |
| Employee NI – upper rate | 2% | 2% |
| Primary Threshold | £12,570 | £12,570 |
| Upper Earnings Limit | £50,270 | £50,270 |
| Employer NI rate | 13.8% | 15% |
| Secondary Threshold | £9,100 | £5,000 |
| Employment Allowance | £5,000 | £10,500 |
Employment Allowance eligibility rules apply and must be actively claimed.
Corporation Tax
| Taxable profits | 2024–25 | 2025–26 |
|---|
| Up to £50,000 | 19% | 19% |
| £50,001 – £250,000 | Marginal Relief | Marginal Relief |
| Over £250,000 | 25% | 25% |
Capital Gains Tax (CGT)
| Item | 2024–25 | 2025–26 |
|---|
| Annual Exempt Amount | £3,000 | £3,000 |
| Residential property | 18% / 24% | 18% / 24% |
| Other assets | 18% / 24% | 18% / 24% |
| BADR / Investors’ Relief | 10% | 14% |
Inheritance Tax (IHT)
| Item | 2024–25 | 2025–26 |
|---|
| Nil-Rate Band | £325,000 | £325,000 |
| Residence Nil-Rate Band | £175,000 | £175,000 |
| Standard IHT rate | 40% | 40% |
Income Tax – England and Wales
| Band | 2024–25 | 2025–26 |
|---|
| Personal Allowance | £12,570 | £12,570 |
| Basic rate | 20% to £50,270 | Same |
| Higher rate | 40% (£50,271–£125,140) | Same |
| Additional rate | 45% over £125,140 | Same |
Income Tax – Scotland (non-savings, non-dividend)
| Band | 2024–25 | 2025–26 |
|---|
| Personal Allowance | £12,570 | £12,570 |
| Starter | 19% | 19% |
| Basic | 20% | 20% |
| Intermediate | 21% | 21% |
| Higher | 42% | 42% |
| Advanced | 45% | 45% |
| Top | 48% | 48% |
Scottish bands and thresholds differ from England and Wales and are set by the Scottish Government.
Key changes for 2025–26
- Employer costs increase materially due to higher employer NI and a lower starting threshold
- Employment Allowance more than doubles, partially offsetting increased employer NI for eligible businesses
- Personal tax thresholds remain frozen, continuing fiscal drag
- CGT planning becomes more relevant as Business Asset Disposal Relief increases to 14%
All taxes are administered by HMRC, but outcomes depend on individual and business circumstances.
