United Kingdom tax guide | Updated 24 October 2026
UK Income Tax Rates 2026-27: Personal Allowances, Capital Gains and Corporation Tax
A practical guide to current UK income tax bands, Scottish rates, capital gains tax, company tax and key statutory rules, with the original 2017-18 figures preserved for historical reference.
Tax years: The UK personal tax year 2026-27 runs from 6 April 2026 to 5 April 2027. Corporation Tax financial years generally start on 1 April. Historical rates below must not be used to calculate current liabilities.
1. Income Tax rates for 2026-27
The standard Personal Allowance is £12,570. It is reduced by £1 for every £2 of adjusted net income above £100,000 and is nil at £125,140. Rates apply progressively, not to all income at a single rate. Under the Finance Act 2026, section 2, the main UK rates are 20%, 40% and 45%. See HMRC current income tax rates.
England, Wales and Northern Ireland: non-savings, non-dividend income
| Taxable income after allowances | Rate |
|---|---|
| First £37,700 | 20% |
| £37,701 to £125,140 | 40% |
| Over £125,140 | 45% |
The taxable-income band table assumes allowances have already been deducted; the higher-rate threshold may interact with the tapering of the Personal Allowance. Wales currently uses the same effective main rates.
Scotland: earnings, pensions and other non-savings income
Scottish Income Tax applies to relevant non-savings income of Scottish taxpayers. Savings interest and dividends generally follow UK-wide rules. See HMRC Scottish Income Tax.
| Taxable income after allowances | Rate |
|---|---|
| First £3,967 | 19% starter |
| £3,968 to £16,956 | 20% basic |
| £16,957 to £31,092 | 21% intermediate |
| £31,093 to £62,430 | 42% higher |
| £62,431 to £125,140 | 45% advanced |
| Above £125,140 | 48% top |
Allowances and dividends
| 2026-27 provision | Amount / rate |
|---|---|
| Standard Personal Allowance | £12,570 |
| Personal Allowance taper begins | Adjusted net income over £100,000 |
| Blind Person's Allowance | £3,250 |
| Dividend allowance | £500 |
| Dividend ordinary / upper / additional rates | 10.75% / 35.75% / 39.35% |
Dividend rates were amended by Finance Act 2026, section 4. The starting rate for savings and other savings allowances depend on individual circumstances. Married Couple's Allowance is restricted to eligible older couples and has income-related limits. Consult HMRC allowances tables.
2. Capital Gains Tax (CGT) in 2026-27
Capital Gains Tax generally applies to taxable gains on disposals of chargeable assets, after allowable costs, losses, exemptions and reliefs. The annual exempt amount is the amount of qualifying net gains an eligible taxpayer may realise without CGT for that year. Certain claims under the foreign income and gains regime can remove eligibility for the exemption.
| 2026-27 category | Amount / rate |
|---|---|
| Individuals: annual exempt amount | £3,000 |
| Most trustees: annual exempt amount | £1,500 |
| Individuals: standard CGT rates | 18% / 24% |
| Trustees and personal representatives: standard rate | 24% |
| Qualifying Business Asset Disposal Relief / Investors' Relief gains | 18% |
The 18% or 24% individual rate depends on taxable income and available basic-rate band. Special rules apply to particular gains, including carried interest. A non-UK resident disposing of UK land may still be liable to UK CGT and reporting obligations. Consult HMRC CGT rates and allowances, the Taxation of Chargeable Gains Act 1992 and HMRC CGT guidance.
3. Corporation Tax rates for 2026
UK Corporation Tax generally applies to taxable profits of companies within the UK charge. The main rate is 25%; qualifying small companies can pay 19%, while companies within the marginal band may claim Marginal Relief, a reduction that smooths the increase between the two rates. Associated companies and short accounting periods can reduce the profit thresholds.
| Profits / category | Rate or treatment |
|---|---|
| Profits of £50,000 or less (qualifying companies) | 19% small profits rate |
| Profits between £50,000 and £250,000 | Marginal Relief may apply |
| Profits above £250,000 | 25% main rate |
| Special rate for unit trusts and open-ended investment companies | 20% |
| Ring fence oil and gas profits | Special regime: 19% small profits rate and 30% main rate |
See HMRC Corporation Tax rates, official rates and allowances and the Corporation Tax Act 2010. The ring fence marginal relief fraction is 11/400; ordinary marginal relief uses 3/200. Additional sector-specific charges can apply.
4. UK residents and non-residents
UK tax residence is generally determined using the Statutory Residence Test in Finance Act 2013, Schedule 45. Residents are ordinarily within the UK charge on worldwide income and gains, subject to applicable reliefs and special regimes. Non-residents generally face UK tax on specified UK-source income and gains, including relevant UK property disposals. Double taxation agreements may change the result. From 6 April 2025, a qualifying four-year foreign income and gains regime may apply to certain new UK residents following at least ten years of non-residence. See HMRC statutory residence guidance and HMRC residence guidance.
5. Historical UK tax rates: 2017-18
The following figures are preserved to document the original article. Some historical source rows were incomplete or inaccurately labelled, so they are clarified rather than reproduced as current law.
2017-18 income tax and allowances
| Provision | 2017-18 |
|---|---|
| Standard Personal Allowance | £11,500 |
| Income threshold for Personal Allowance taper | £100,000 |
| England, Wales and Northern Ireland basic rate | 20% on first £33,500 taxable income |
| Higher rate | 40% on taxable income £33,501 to £150,000 |
| Additional rate | 45% on taxable income above £150,000 |
| Scottish basic-rate band | 20% on first £31,500 taxable non-savings income |
| Married Couple's Allowance maximum / minimum | £8,445 / £3,260 |
| Blind Person's Allowance | £2,320 |
The original page listed a 0% band of £5,000. That referred to the conditional starting rate for savings, not a general 0% income tax band. Scotland's 2017-18 non-savings rates were 20%, 40% and 45%, with different bands from the rest of the UK. See HMRC historical rates.
2017-18 Capital Gains Tax
| Gain type / taxpayer | Historical rate |
|---|---|
| Most gains: basic-rate portion | 10% |
| Most gains: higher-rate portion | 20% |
| Residential property gains: basic-rate portion | 18% |
| Residential property gains: higher-rate portion | 28% |
Different rules could apply to trustees, personal representatives and qualifying business reliefs. The historic rates are not applicable to disposals in 2026-27.
2017-18 Corporation Tax
| Category | Historical rate |
|---|---|
| Main Corporation Tax rate, non-ring-fence profits | 19% |
| Special unit trust and open-ended investment company rate | 20% |
| Ring fence main rate | 30% |
| Ring fence small profits rate | 19% |
| Ring fence marginal relief fraction | 11/400 |
Ring fence marginal relief historically operated within a profit range of £300,000 to £1.5 million (subject to applicable adjustments). For historical company tax rates, see HMRC Corporation Tax tables.
6. Primary legislation and official sources
- Income Tax Act 2007 - framework for income tax rates, reliefs and allowances.
- Finance Act 2026 - 2026-27 income tax rates and dividend rate amendments.
- Taxation of Chargeable Gains Act 1992 - statutory framework for chargeable gains.
- Corporation Tax Act 2010 - corporation tax computation and provisions.
- HMRC Income Tax, HMRC CGT and HMRC Corporation Tax - official guidance.
Information updated 24 October 2026. This general guide does not replace professional advice on individual circumstances, statutory amendments or treaty provisions.