Income Tax rates and allowances - www.rossmartin.co.uk

Income Tax rates and allowances

Click here for National Insurance rates

For earlier years Income Tax rates, see the Tax Data Cards in More Tax Guides.

Income Tax

Personal allowances	2026-27	2025-26
Personal Allowance (PA)	£12,570	£12,570
PA restricted by £1 for every £2 of adjusted net income over	£100,000	£100,000
Transferable tax allowance for married couples and civil partners	£1,260	£1,260
Blind Person's Allowance	£3,250	£3,130
Married Couples' Allowance (at least one born pre-6 April 1935): Maximum (relief given at 10%) Minimum (relief given at 10%) Income limit	£11,700 £4,530 £39,200	£11,270 £4,360 £37,700

Other allowances	2026-27	2025-26
Personal Savings Allowance: Basic rate taxpayers Higher-rate taxpayers Additional rate taxpayers	£1,000 £500 £0	£1,000 £500 £0
Starting rate limit for savings (non-savings income < PA) Savings starting rate: 0% Reduces by £1 for every £1 of non-savings income > PA	£5,000	£5,000
Dividend Allowance	£500	£500
Rent-a-room Relief amount	£7,500	£7,500
Trading/Property Allowance	£1,000	£1,000
Qualifying Care Relief Annual fixed amount Weekly amount (children under 11 years) Weekly amount (children 11 years or older) Weekly amount (adults)	£20,440 £435 £515 £515	£19,690 £415 £495 £495

Income Tax bands and rates*	2026-27	2025-26
Basic rate band: Savings Non-savings Dividends Gift Aid and pension contributions can extend basic rate band	£37,700 20% 20% 10.75%	£37,700 20% 20% 8.75%
Higher rate band: Savings Non-savings Dividends	£37,701-£125,140 40% 40% 35.75%	£37,701-£125,140 40% 40% 33.75%
Additional rate band: Savings Non-savings Dividends	£125,140+ 45% 45% 39.35%	£125,140+ 45% 45% 39.35%
Rates applicable to trusts (accumulated and discretionary income): Savings Non-savings Dividends Trusts (other) Dividend ordinary rate Default basic rate	45% 45% 39.35% 10.75% 20%	45% 45% 39.35% 8.75% 20%
For devolved Income Tax rates and bands*: Applying in Scotland, see: Scottish Income Tax Rates Applying in Wales, see Welsh Income Tax Rates

Temporary Repatriation Facility	2026-27	2025-26
Rate of designated Foreign Income and Gains (FIG)	12%	12%

Child benefit	2026-27	2025-26
One child (per week)	£27.05	£26.05
Additional children (per week)	£17.90	£17.25
High-Income Child Benefit Charge: 1% for every £200 of income over:	£60,000	£60,000
Child benefit fully repayable if income over	£80,000	£80,000

Savings & investments

Individual Savings Accounts (ISAs)	2026-27	2025-26
ISA annual limit (cash and shares combined)	£20,000	£20,000
Lifetime ISA annual limit	£4,000	£4,000
Lifetime ISA withdrawal charge	25%	25%
Help to buy ISA limit per month (closed to new accounts November 2019)	£200	£200
Junior ISA annual limit	£9,000	£9,000

Venture capital	2026-27	2025-26
Maximum individual investment: Enterprise Investment Scheme (EIS) EIS, where amounts over £1m invested in 'knowledge-intensive' companies Seed EIS (SEIS) Venture Capital Trust (VCT)	£1,000,000 £2,000,000 £200,000 £200,000	£1,000,000 £2,000,000 £200,000 £200,000
Maximum Income Tax reduction: EIS SEIS VCT	30% 50% 20%	30% 50% 30%

Pensions	2026-27	2025-26
Annual Allowance limit	£60,000	£60,000
Tapered Annual Allowance (applies when an individual has ‘adjusted income’ over this amount, provided the ‘threshold income’ test is met)	£260,000	£260,000
Maximum gross tax-relieved contributions with no relevant earnings	£3,600	£3,600
Money Purchase Annual Allowance	£10,000	£10,000
Lump Sum and Death Benefit Allowance	£1,073,100	£1,073,100
Lump Sum Allowance	£268,275	£268,275
Overseas Transfer Allowance	£1,073,100	£1,073,100