| Tax rate / allowance | 2026/27 | 2025/26 |
|---|---|---|
| English Rates | ||
| Personal allowance | £12,570 | £12,570 |
| Personal allowance taper starts | £100,000 | £100,000 |
| Basic rate (England/Wales/NI) | 20% | 20% |
| Higher rate (England/Wales/NI) | 40% | 40% |
| Additional rate (England/Wales/NI) | 45% | 45% |
| Starting rate for savings | 0% | 0% |
| Marriage allowance transfer | £1,260 | £1,260 |
| Blind person allowance | £3,250 | £3,130 |
| Dividend allowance | £500 | £500 |
| Personal savings allowance basic | £1,000 | £1,000 |
| Personal savings allowance higher | £500 | £500 |
| Dividend basic rate | 10.75% | 8.75% |
| Dividend higher rate | 35.75% | 33.75% |
| Dividend additional rate | 39.35% | 39.35% |
| Scottish Rates | ||
| Starter rate | 19%: £1–£3,967 | 19%: £1–£2,827 |
| Basic rate | 20%: £3,968–£16,956 | 20%: £2,828–£14,921 |
| Intermediate rate | 21%: £16,957–£31,092 | 21%: £14,922–£31,092 |
| Higher rate | 42%: £31,093–£62,430 | 42%: £31,093–£62,430 |
| Advanced rate | 45%: £62,431–£125,140 | 45%: £62,431–£125,140 |
| Top rate | 48%: over £125,140 | 48%: over £125,140 |
| PENSION & ISA ALLOWANCES | ||
| Pension annual allowance | £60,000 | £60,000 |
| Money purchase annual allowance | £10,000 | £10,000 |
| Adjusted income taper threshold | £260,000 | £260,000 |
| ISA annual limit | £20,000 | £20,000 |
| Junior ISA annual limit | £9,000 | £9,000 |
* The savings starting rate does not apply if non-savings income exceeds £5,000.
Income tax in Scotland and Wales is payable on non-savings and non-dividend income.
| Bands | 2023-24 | 2022-23 |
| Dividend allowance | £1,000 | £2,000 |
| Dividend ordinary rate | 8.75% | 8.75% |
| Dividend upper rate | 33.75% | 33.75% |
| Dividend additional rate | 39.35% | 39.35% |
| Personal savings allowance | ||
| Basic rate taxpayers | £1,000 | £1,000 |
| Higher rate taxpayers | £500 | £500 |
| Reliefs | 2023-24 | 2022-23 |
| Personal allowance | £12,570 | £12,570 |
| Registered blind person’s allowance | £2,870 | £2,600 |
| Income limit for personal allowance** | £100,000 | £100,000 |
** The personal allowance is withdrawn by £1 for every £2 of income over £100,000.
| Married couple allowance – tax relief given at 10% | 2023-24 | 2022-23 |
| Born before 6 April 1935 | £9,415 | £9,125 |
| Minimum amount | £4,010 | £3,640 |
| Income limit | £34,600 | £31,400 |
| Marriage allowance*** | £1,260 | £1,260 |
*** A taxpayer can transfer up to £1,260 of their unused personal allowance to a spouse or civil partner who is not a higher rate taxpayer.
If your income goes above £31,400 in 2022/23 (£34,600 for 2023/24) then MCA is reduced, but it cannot reduce below the minimum allowance of £3,640 for 2022/23 (£4,010 for 2023/24). If you are too young to benefit from MCA then you may qualify for Marriage Allowance instead but you cannot have both.