Reference · Tax year 2025-26 · Updated 2026-05-17
UK Tax Rates 2025/26
Canonical, citable reference of every UK tax rate an agency founder needs in 2025/26. Maintained by Agency Founder Finance. Machine-readable JSON · Primary sources
Editorial: figures are provided as reference only. For decisions specific to your agency, book a call.
Corporation Tax
| Small profits rate (profits ≤ £50,000) | 19% |
| Main rate (profits ≥ £250,000) | 25% |
| Marginal relief band | £50,000–£250,000 · fraction 3/200 |
Dividend Tax
| Dividend allowance | £500 |
| Basic rate | 8.75% |
| Higher rate | 33.75% |
| Additional rate | 39.35% |
Income Tax (England, Wales, NI)
| Personal allowance | £12,570 |
| Basic rate (up to £50,270) | 20% |
| Higher rate (£50,271–£125,140) | 40% |
| Additional rate (above £125,140) | 45% |
| Personal allowance taper | £1 lost per £2 above £100,000, fully tapered at £125,140 |
National Insurance
| Employee primary threshold | £12,570 |
| Employee main rate (PT to UEL) | 8% |
| Employee upper rate (above UEL) | 2% |
| Employer secondary threshold | £5,000 |
| Employer rate | 15% |
| Employment Allowance | £10,500 |
| Self-employed Class 4 (main) | 6% |
| Self-employed Class 4 (upper) | 2% |
Capital Gains Tax
| Annual exempt amount | £3,000 |
| Non-residential, basic rate | 18% |
| Non-residential, higher rate | 24% |
| Residential, basic rate | 18% |
| Residential, higher rate | 24% |
Business Asset Disposal Relief (BADR)
| Lifetime limit | £1,000,000 |
| Rate (2025/26) | 14.00% |
| Rate from 6 April 2026 | 18% |
| Qualifying period | 2 years |
VAT
| Standard rate | 20% |
| Reduced rate | 5% |
| Registration threshold | £90,000 |
| Deregistration threshold | £88,000 |
| Flat-rate limited-cost trader | 16.50% |
R&D Tax Relief
| Merged scheme, headline credit | 20% |
| Merged scheme, effective after-tax benefit | 15% |
| ERIS intensity threshold | 30% |
| ERIS enhancement rate | 86% |
| ERIS payable credit rate | 14.50% |
Making Tax Digital for Income Tax (ITSA)
| Phase 1, £50k+ self-employed/landlord | 2026-04-06 |
| Phase 2, £30k+ self-employed/landlord | 2027-04-06 |
| Phase 3, £20k+ self-employed/landlord | 2028-04-06 |
Pensions
| Annual allowance | £60,000 |
| Money purchase annual allowance | £10,000 |
| Tapered threshold income | £200,000 |
| Tapered adjusted income | £260,000 |
| Lump sum allowance | £268,275 |
Inheritance Tax
| Nil-rate band | £325,000 |
| Residence nil-rate band | £175,000 |
| Standard rate | 40% |
| Reduced (10% to charity) rate | 36% |
Primary sources
- Rates and thresholds for employers 2025 to 2026 HMRC
- Income Tax rates and Personal Allowances HMRC
- Corporation Tax rates and allowances HMRC
- Capital Gains Tax: rates of tax HMRC
- Making Tax Digital for Income Tax HMRC
- Research and Development tax relief reform HMRC
Licence: CC BY 4.0 licence terms. Attribution: Agency Founder Finance, https://www.agencyfounderfinance.co.uk/uk-tax-rates