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You are in: Home » Resources » Tax Centre » Tax Rates And Allowances » Full List

In this document you will find:

• Capital Allowances
• Capital Taxes
• Corporation Tax
• Income Tax Rates and Bands
• Individuals
• Inheritance Tax
• Investments
• ISAs
• Land Tax Duties
• National Insurance
• Private Residences
• Tax Free Mileage Allowances
• VAT Rates

Capital Allowances

	2022/2023	2023/2024	2024/2025	2025/2026
Main rate pool: writing down allowance	18%	18%	18%	18%
Main rate pool: Full expensing	N/A	N/A	N/A	N/A
Main rate pool: Super deductions	130%	130%	N/A	N/A
Single asset pools Super deductions	N/A	N/A	6% or 18%	6% or 18%
Special rate pool (long life assets, integral features): writing down allowance	6%	6%	6%	6%
Special rate pool: Full expensing	N/A	50%	50%	50%
Special rate pool: Super deductions	50%	50%	50%	50%
Annual Investment Allowance (AIA) cap:	£1,000,000	£1,000,000	£1,000,000	£1,000,000
Structures and Buildings Allowance	3%	3%	3%	3%

The AIA allows businesses to invest in equipment and fixtures (cars and buildings don't qualify), with 100% tax relief in the year of purchase.

The AIA cap has been permanently set at £1,000,000. If the accounting period is shorter or longer than 12-months the AIA cap is apportioned based on the length of the period.

Super deductions and full expensing can only be claimed by companies subject to corporation tax. Where either of these reliefs are claimed the items must not be pooled. When an items for which the super deduction or full expensing has been claimed is sold, it can result in a balancing charge.

Super deductions cannot be claimed for plant and machinery which is bought to be leased to another party unless it is back ground plant and machinery in leased buildings.

Capital Taxes

Enveloped Dwellings

Annual tax on Enveloped Dwellings (ATED)

The annual charges per property in each of the valuation bands are:  

Property value £	Annual charge 2020/21 £	2021/22  £	2022/23  £	2023/24  £	2024/25  £	2025/26  £
Up to 500,000	Nil	Nil	Nil	Nil	Nil	Nil
500,001 to 1,000,000	3,700	3,700	3,800	4,150	4,400	4,450
1,000,001 - 2,000,000	7,500	7,500	7,700	8,450	9,000	9,150
2,000,001 - 5,000,000	25,200	25,300	26,050	28,650	30,550	31,050
5,000,001 - 10,000,000	58,850	59,100	60,900	67,050	71,500	72,700
10,000,001 - 20,000,000	118,050	118,600	122,250	134,550	143,550	145,950
Over £20,000,000	236,250	237,400	244,750	269,450	287,500	292,350

ATED applies where a residential property located in the UK is owned by a non-natural person such as; a company, partnership with a corporate member or a collective investment scheme.

For the years 2023/24 to 2027/28 the property valuation is its market value on 1 April 2022, or when acquired, if later. For the previous five years the property valuation point was 1 April 2017, or the date of acquisition if later.

There are a large number of reliefs and exemptions from the charge, and where such a relief applies an ATED relief declaration must be submitted. In other cases where an ATED charge is due the ATED return must be delivered to HMRC and the charge paid by 30 April within the chargeable year that runs from 1 April to 31 March.

Capital Gains Tax

The rates and annual exemption for capital gains tax are as follows:

	2020/21	2021/22	2022/23	2023/24	2024/25	2025/26
Annual exemption	£12,300	£12,300	£12,300	£6,000	£3,000	£3,000
Annual exemption for most trustees and personal representatives	£6,150	£6,150	£6,150	£3,000	£1,500	£1,500
Rate for gains within the basic rate band	10%	10%	10%	10%	10/18%*	18%*
Rate for gains above the basic rate band	20%	20%	20%	20%	20/24%*	24%*
Gains on residential property and carried interest within the basic rate band	18%	18%	18%	18%	18%	-
Gains on carried interest within the basic rate band	-	-	-	-	-	32%
Gains on residential property above the basic rate band	28%	28%	28%	28%	24%	24%
Gains on carried interest above the basic rate bandband	28%	28%	28%	28%	28%	32%
Rate for gains subject to Business Asset Disposal Relief	10%	10%	10%	10%	10%	14%
Rate for gains subject to Investors’ Relief	10%	10%	10%	10%	10%	14%
Lifetime limit for gains subject to Business Asset Disposal Relief	£1m	£1m	£1m	£1m	£1m	£1m
Lifetime limit for gains subject to Investors’ Relief	£10m	£10m	£10m	£10m	£10m/£1m*	£1m

* Rate/limit before and after 30 October 2024

Corporation Tax

Rates

The rates for today and for the past few years are as follows:

Year beginning 1 April:	2021	2022	2023	2024	2025
Corporate Tax main rate	19%	19%	25%	25%	25%
Corporate Tax small profits rate	N/A	N/A	19%	19%	19%
Marginal relief lower profit limit	N/A	N/A	£50,000	£50,000	£50,000
Marginal relief upper profit limit	N/A	N/A	£250,000	£250,000	£250,000
Standard fraction	N/A	N/A	3/200	3/200	3/200
Main rate (all profits except ring fence profits)	19%	19%	N/A	N/A	N/A

From 1 April 2023, the Corporation Tax main rate applies to profits over £250,000, and the small profits rate applies to profits of up to £50,000. Those thresholds are divided by the number of associated companies carrying on a trade or business for all or part of the accounting period.   Companies with profits between £50,000 and £250,000 pay tax at the main rate reduced by a marginal relief determined by the standard fraction and this formula:

Where:

F = standard fraction

U = upper limit

A = amount of the augmented profits

N =amount of the taxable total profits 

For companies with ring fence profits from oil or gas related activities, the main rate is 30%, and the small profits rate is 19%, with a ring fence fraction of 11/400. This has applied for all financial years from 2008.

Research and Development (R&D)

R&D Tax Relief – Rules for 2025/26

From 1 April 2024, a new merged R&D scheme replaced the previous SME and RDEC schemes for most companies. However, a modified SME scheme — called Enhanced R&D Intensive Support (ERIS) — remains available for R&D-intensive, loss-making SMEs as of April 2025.

The Merged Scheme

• Applies to most companies for accounting periods starting on or after 1 April 2024.
• Offers a 20% taxable expenditure credit on qualifying R&D costs.
• Available to companies within the charge to UK Corporation Tax with R&D projects aimed at advancing science or technology.
• The qualifying expenditure rules remain similar to the old schemes, covering staffing, software, consumables, utilities (excluding rent), and subcontracted R&D under certain conditions.

Enhanced R&D Intensive Support (ERIS)

• Available to loss-making SMEs that spend at least 40% of total costs on qualifying R&D.
• Allows a total deduction of 186% (100% base + 86% enhancement).
• Offers a non-taxable payable credit worth up to 14.5% of the surrenderable loss.

Companies cannot claim both ERIS and the merged scheme for the same expenditure but can choose between them if eligible.

Schemes for Periods Starting Before 1 April 2024

SME Scheme

Provided a 230% deduction before April 2023; reduced to 186% from April 2023.
Loss-making SMEs could surrender losses for:

• 10% credit generally
• 14.5% if R&D-intensive (?40% spend on R&D)

RDEC Scheme

For large companies or SMEs not eligible for the SME scheme.
Offered a 20% taxable credit on qualifying R&D spend.

R & D Summary

In conclusion, from 1 April 2024, the previous SME and RDEC schemes have been consolidated into a single R&D Tax Relief scheme for most companies, with the exception of the new Enhanced R&D Intensive Support (ERIS) scheme, which remains available for R&D-intensive, loss-making SMEs.

The key difference is that the merged R&D Tax Relief scheme now applies to most companies, whereas the Enhanced R&D Intensive Support (ERIS) scheme is specifically for R&D-intensive, loss-making SMEs, which was not the focus of the previous schemes.

Income Tax Rates and Bands

Recent income tax rates and bands are as follows:

	2021/22	2022/23	2023/24	2024/25	2025/26
Savings rate: 0%	Up to £5,000	Up to £5,000	Up to £5,000	Up to £5,000	Up to £5,000
Dividend Allowance: 0%	Up to £2,000	Up to £2,000	Up to £1,000	Up to £500	Up to £500
Basic rate: 20%	£12,571 to £50,270	£12,571 to £50,270	£12,571 to £50,270	£12,571 to £50,270	£12,571 to £50,270
Higher rate: 40%	£50,271 to - £150,000	£50,271 to - £150,000	£50,271 to - £125,140	£50,271 to - £125,140	£50,271 to - £125,140
Additional rate: 45%	Over £150,000	Over £150,000	Over £125,140	Over £125,140	Over £125,140

When the personal allowance (£12,570) is taken into account an individual will start to pay tax at 40% when their total income exceeds £50,270. This threshold (and the 45% threshold) can be increased if the taxpayer pays personal pension contributions or makes gift aid donations.

Scottish Income Tax Rates and Bands

Scottish income tax applies to non-savings and non-dividend income. Reforms to the Scottish tax system led to a new Advanced band of income tax coming into force from 6 April 2024, meaning the country moves further away from the set up in the rest of the UK.

The new rates and thresholds from April 2025 look like this.

	Tax rate	Income thresholds
Personal allowance	0%	Up to £12,570
Starter Rate	19%	£12,571 to £15,397
Basic Rate	20%	£15,398 to £27,491
Intermediate Rate	21%	£27,492 to £43,662
Higher Rate	42%	£43,663 to £75,000
Advanced Rate	45%	£75,001 to £125,140
Top Rate	48%	Over £125,140

This is how the rates and thresholds looked prior to the changes:

	2020/21	2021/22	2022/23	2023/24	2024/25
Starter rate: 19%	Up to £2,085	Up to £2,097	Up to £2,162	Up to £2,162	Up to £2,306
Basic rate: 20%	£2,086 to £12,658	£2,098 to £12,726	£2,163 to £13,118	£2,163 to £13,118	£2,307 to £13,991
Intermediate rate: 21%	£12,659 to £30,930	£12,727 to £31,092	£13,119 to £31,092	£13,119 to £31,092	£13,992 to £31,092
Higher rate: 42%	£30,931 to £150,000	£31,093 to £150,000	£31,093 to £150,000	£31,093 to £125,140	£31,093 to £75,000
Advanced rate: 45%					£75,001 to £125,140
Additional rate: 46% (47% from April 2023 & 48% from April 2024)	Over £150,000	Over £150,000	Over £150,000	Over £125,140	Over £125,140

Individuals

Personal Allowances

The standard personal allowance has been frozen at £12,570 for all years from 2021/22 to today (April 2025). Currently, it is set to remain frozen still until 2027/28 unless changes are made at the Autum 2025 Budget or beyond.

The allowances for recent years are as follows:

	2020/21 (£)	2021/22 (£)*	2022/23 (£)	2023/24 (£)	2024/25 (£)	2025/26 (£)
Personal Allowances	£12,500	£12,500	£12,570	£12,570	£12,570	£12,570
Minimum married couples allowance	£3,450	£3,510	£3,640	£4,010	£4,280	£4,360
Maximum married couples allowance	£8,915	£9,075	£9,415	£10,375	£11,080	£11,270
Marriage allowance	£1,250	£1,250	£1,260	£1,260	£1,260	£1,260
Blind person's allowance	£2,450	£2,500	£2,600	£2,870	£3,070	£3,130
Income limit for allowances for Married couple’s allowance	£29,600	£30,200	£30,400	£30,400	£37,000	£37,700
Income limit for standard allowances	£100,000	£100,000	£100,000	£100,000	£100,000	£100,000
Personal allowance removed completely at:	£125,000	£125,000	£125,140	£125,140	£125,140	£125,140

The transferrable marriage allowance applied from 6 April 2015 to couples (married or civil partners) where neither person pays tax at the 40% or 45% rates. The spouse who cannot use all their personal allowance against their own income may opt to transfer 10% of their personal allowance to their spouse or civil partner.

The personal allowance is tapered away for individuals who have income over £100,000, at the rate of £1 for every £2 of income above that threshold.

Inheritance Tax

The inheritance tax (IHT) nil rate band (NRB) is set at £325,000 as of April 2025. And at the Autumn Budget in October 2024 Chancellor Rachel Reeves announced Inheritance Tax thresholds will stay at their current levels for tax years 2028 to 2029 and 2029 to 2030. As a result, the following all stay the same in this period, barring any further tinkering by the Treasury from April 2025 onwards:

• nil-rate band at £325,000
• residence nil-rate band at £175,000
• residence nil-rate band taper, starting at £2 million

Inheritance Tax rates

There is a standard rate of 40% - this applies to the part of your estate about the relevant threshold.
The standard Inheritance Tax rate is 40%. It’s only charged on the part of your estate that’s above the threshold.
This rate drops to 36% on some of the assets but only if you pass on 10% or more of the ‘net value’ to charity in your will.

Residence Nil Rate Band

An additional nil-rate band (the ‘residence nil rate band’ (RNRB)) applies where an individual dies after 5 April 2017 and their estate is above the NRB. The RNRB applies when the whole or part share in the deceased’s home is passed on death to direct descendants. The maximum value of the RNRB is the lower of: the value of the home passed on, or the amount in the table below:

Year of death	Value of RNRB
2017/18	£100,000
2018/19	£125,000
2019/20	£150,000
2020/21	£175,000
2021/22	£175,000
2022/23	£175,000
2023/24	£175,000
2024/25	£175,000
2025/26	£175,000

The value of RNRB is tapered away at £1 for every £2 by which the value of the total estate exceeds £2 million.

Investments

Seed Enterprise Investment Scheme (SEIS)

SEIS was introduced to encourage people to invest in companies that have just started trading by offering tax reliefs to investors that buy shares in the company.

The table below shows the income and capital gains tax reliefs that apply:

Tax Year	2013/14 to 2022/23	2023/24	2024/25	2025/26
Rate of income tax relief	50%	50%	50%	50%
Maximum investment qualifying for income tax relief	£100,000	£200,000	£100,000	£200,000
Gains exempt from CGT relief on reinvestment in SEIS shares:	50%	50%	50%	50%

 

Enterprise Investment Scheme (EIS)

EIS is available to companies that are looking to grow by offering tax reliefs to investors that buy new shares in the company.

The table below shows the income tax reliefs that apply:

EIS	2012/13 to 2017	From 2018/19
Rate of income tax relief	30%	30%
Maximum investment qualifying for income tax relief	£1,000,000	£2,000,000

To qualify for the maximum of £2m, at least £1 million of that is invested in knowledge-intensive companies.

A gain made on the disposal of EIS shares after holding them for at least three years is exempt from CGT to the extent that full income tax relief has been claimed, and not withdrawn, on the investment.

A gain made on the disposal of EIS shares after holding them for at least three years is exempt from CGT to the extent that full income tax relief has been claimed, and not withdrawn, on the investment.

Where the disposal proceeds from any capital gain are reinvested in a subscription for EIS shares in the four-year period that starts one year before the date of the gain, all or part of the original gain can be deferred. The deferred gain is brought back into charge on the disposal of the EIS shares or on a breach of the investment conditions

Social Investment Tax Relief (SITR)

This relief was withdrawn on 5 April 2023.

The table below shows the income and capital gains tax reliefs that apply:

SITR	2014/15 to 2022/23
Rate of income tax relief	30%
Maximum investment qualifying for income tax relief	£1,000,000

Venture Capital Trusts (VCTs)

VCTs were introduced to encourage people to invest in companies that have just started trading by offering tax reliefs to investors that buy shares in the company.

The figures below shows the income and capital gains tax reliefs that apply:

VCT
Rate of income tax relief	30%
VCT
Maximum investment qualifying for income tax relief	£200,000	Individual shareholders must be aged 18 or over. The relief applies if their shares are held for at least five years.

ISAs

The ISA investment limits are as follows:

	2019/2020	2020/2021	2021/2022	2022/2023	2023/2024	2024/2025	2025/2026
ISA for shares and/or cash	£20,000	£20,000	£20,000	£20,000	£20,000	£20,000	£20,000
Junior ISA and Child Trust Fund	£4,368	£9,000	£9,000	£9,000	£9,000	£9,000	£9,000

From 1 December 2015 to 30 November 2019 first time buyers could open a Help to buy ISA to help save for their first home. The Government contributed a 25% bonus, up to £3,000 per ISA payable when the funds are used to buy the home. Though phased out in November 2019 the Help to buy ISA is still operating for existing account holders.

From 6 April 2017 UK resident individuals aged between 18 and 40 may open a Lifetime ISA to save up to £4,000 per year. The first payment is made before you reach 40. The Government will contribute a 25% bonus up to £1,000 per year. Savers can invest up to £4,000 each year, until the age of 50. The funds can be withdrawn from age 60 onwards or when the saver is terminally ill. The savings may also be used to help purchase the saver’s first home worth up to £450,000, after the account has been open for at least 12 months. The Government bonus will be lost if the funds are accessed for other purposes.

Premium Bonds

Individuals may invest up to £50,000 in premium bonds. Any winnings are tax free.

The odds of winning a prize for each £1 bond number are currently 22,000 to 1. There are two £1m prizes per month. The balance of the prize fund is allocated into three value bands: 10% in the higher band ( £5000 to £100,000) , 10% in the medium band (£500 and £1000) and 80% in the lower band ( £100, £50 and £25).

 

Land Tax Duties

Stamp Duty Land Tax

Residential Land or property

Stamp Duty Land Tax (SDLT) is charged on transactions of land or buildings located in England or Northern Ireland. The amount due is calculated at each rate on the portion of the purchase price which falls within each rate band. The tax is payable within 14 days on the completion date of the deal.

As of April 2025, the bands and rates were:

Rate	Property value band
0%	Up to £125,000
2%	£125,001 - £250,000
5%	£250,001 - £925,000
10%	£925,001 - £1,500,000
12%	Over £1,500,000

A supplement of 5% applies where purchaser owns an interest in two or more homes at the end of the day of the transaction, and the property is not a replacement for their main home, or the purchaser is a corporate body.

First Time buyers' relief

This can apply where all the purchasers of the property have never owned an interest in a residential property. The buyers must intend to live in the home as their main residence and the purchase price must not exceed £500,000.

As of April 2025, first time buyers' relief applies so means eligible buyers will pay 0% on the first £300,000 and then 5% on the remainder up to the maximum £500,000 price.

Non-Residential or mixed property

Rate from 17 March 2016	Purchase price/lease premium or transfer value
0%	Up to £150,000
2%	£150,001 - £250,000
5%	Over £250,000

Lease rentals

Effective date	Residential property	Non-residential or mixed property	Rate
NPV of rents	NPV of rents	%
From 23 September 2022 to 31 March 2026	Up to £125,000	Up to £150,000	0
	Over £125,000	£150,001 to £5m	1
	N/A	Over £5m	2
From 1 October 2021 to 22 September 2022	Up to £125,000	Up to £150,000	0
	Over £125,000	£150,001 to £5m	1
	N/A	Over £5m	2

Where the chargeable consideration includes rent, Stamp Duty Land Tax (SDLT) is payable both on the lease premium and on the net present value (NPV) of the rent.

For non-residential property, if the annual rent is £1,000 or more, the 0% SDLT band for lease premiums is not available.

Land and buildings transaction tax

Residential Land or property

Land and buildings transaction tax (LBTT) is charged on transactions concerning property located in Scotland from 1 April 2015.

As of April 2025, the bands and rates were as follows:

Band	Rate
£0-145,000*	0%
£145,0001 - £250,000	2%
£250,001 - £325,000	5%
£325,001 - £750,000	10%
£750,000 and above	12%

* For first-time buyers the nil rate band ceiling is £175,000 due to a tax relief
The Additional Dwelling Supplement (ADS) may also apply at a flat 8% rate for some transactions for contracts entered into on or after 5 December 2024 (6% for contracts entered into on or before 4 December 2024).

Non-Residential or mixed property

Lease rentals

Rate from 7 February 2020	NPV of rents
0%	Up to £150,000
1%	£150,001 to £2 million
2%	Over £2 million

Land Transaction Tax

Land transaction tax (LTT) applies to transactions of land and property located in Wales from 1 April 2018. The higher rates, shown below, may apply for those buyers who already own one or more residential properties.

Residential property

Rates as of April 2025:

Wholly residential property value:	Main rate %	Wholly residential property value:	Higher rates %
Up to £225,000	0	Up to £180,000	4.0/5.0*
£225,001 - £400,000	6.0	£180,001 - £250,000	7.5/8.5*
£400,001 - £750,000	7.5	£250,001 - £400,000	9.0/10.0*
£750,001 - £1,500,000	10.0	£400,001 - £750,000	11.5/12.5*
Over £1,500,000	12.0	£750,001 - £1,500,000	14.0/15.0*
		Over £1,500,000	16.0/17.0*

*Higher rates before and after 11 December 2024

Non-residential and mixed use.

Shops, offices and agricultural land are examples of where this might apply.

Rates as of April 2025:

Purchase price	Rate for freehold purchase or lease premium
Up to £225,000	0%
£225,000 to £250,000	1%
£250,000 to £1 million	5%
Over £1 million	6%

Lease rentals

NPV of rents threshold	Rate
Up to £225,000	0%
£225,000 to £2 million	1%
Over £2 million	2%

National Insurance

The rates and thresholds for National Insurance Contributions for 2024/25 are:

Class:	Monthly earnings	Rate
Employer Class 1 above Secondary threshold	£417/month	15%
Employee's class 1	£1048 to £4189	10%
Employee's additional class 1	Over £4189	2%
Self-employed class 2 (per week)	N/A	£3.50
Share fishermen class 2 (per week)	N/A	£4.15
Volunteer development workers class 2	N/A	£6.25
Class 3 (per week)	N/A	£17.75
	Annual profit thresholds
Self-employed class 2	Over £12,570 credit available if profits between £6725 and £12,570
Self-employed class 4	£12,570 to £50,270	6%
Self-employed class 4 additional rate	Over £50,270	2%

Private Residences

Main residence relief (also known as ‘principal private residence’ relief (PPR)) provides relief from capital gains tax on the disposal of (or of an interest in) a dwelling which has been the individual’s only or main residence, and on land enjoyed with that residence as its garden or grounds up to half a hectare, or more if the additional land is required for the reasonable enjoyment of the property.

The relief is time apportioned for periods of occupation, and for certain periods of deemed occupation. In particular, relief for the final 9 month period of ownership is given, if the property was at some time the individual’s only or main residence. For the 2025/26 tax year, there is an important update: the final 9 months exemption has been extended to 18 months for those who are disabled or move into care homes.

Where two or more properties are owned, the taxpayer may elect, within certain time limits, which property is to be treated as his main residence.

Married couples and civil partners may have only one main residence at any time between them which qualifies for the relief.

Tax Free Mileage Allowances

	First 10,000 business miles in the tax year	Each mile over 10,000 miles in the tax year	Extra passenger making same trip
Cars and vans	45p	25p	5p
Motorcycles	24p	24p	N/A
Bicycles	20p	20p	N/A

These rates represent the maximum tax-free mileage allowances for employees using their own vehicles for business. Any excess is taxable. If the employee receives less than the statutory rate, tax relief can be claimed on the difference.

VAT Rates

The VAT rates and thresholds are as follows:

From	1 April 2019	1 April 2020	1 April 2021	1 April 2022	1 April 2023	1 April 2024	1 April 2025
Zero rate	0%	0%	0%	0%	0%	0%	0%
Reduced rate	5%	5%	5%	5%	5%	5%	5%
Standard rate	20%	20%	20%	20%	20%	20%	20%
Registration turnover	£85,000	£85,000	£85,000	£85,000	£85,000	£90,000	£90,000
Deregistration turnover	£83,000	£83,000	£83,000	£83,000	£83,000	£88,000	£88,000
Acquisitions from EU member states, registration and deregistration threshold	£85,000	£85,000	£85,000*	£85,000*	£85,000*	£90,000*	£90,000*

* From 1 January 2021 this is only relevant for supplies of goods into Northern Ireland.