UK Income Tax Rates 2026-27: Personal Allowance, Capital Gains and Corporation Tax

UK income tax rates for 2026-27

In England, Wales and Northern Ireland, the standard Personal Allowance is £12,570. The following bands assume entitlement to the full allowance; the rate applies only to the portion of income in each band.

For precise calculations, the basic-rate band is the first £37,700 of taxable income after allowances. The Personal Allowance is reduced by £1 for every £2 of adjusted net income above £100,000 and reaches zero at £125,140. See HMRC income tax rates.

Scottish income tax rates for 2026-27

Scottish taxpayers pay separate rates on non-savings, non-dividend income, including most employment, pension and self-employment income. UK-wide rules generally apply to savings and dividend income.

Allowance tapering changes the effective thresholds for high earners. Official source: Scottish Income Tax.

Personal and other allowances

Married Couple's Allowance is subject to eligibility and income-related restrictions; it is distinct from Marriage Allowance. For 2026-27, dividend rates above the dividend allowance are 10.75%, 35.75% and 39.35% depending on the applicable band. See HMRC rates and allowances.

Capital Gains Tax in 2026-27

Capital Gains Tax (CGT) generally applies to chargeable gains from disposals of assets, rather than the entire sale proceeds. The chargeable gain is usually calculated after allowable acquisition and disposal costs, qualifying reliefs, losses and the annual exempt amount.

Special rules can apply to carried interest, non-residents, residential property and certain other assets. Refer to HMRC CGT rates and allowances and the CGT overview.

UK Corporation Tax rates for financial year 2026

Corporation Tax generally applies to taxable company profits. The main rate is 25% and the small profits rate is 19%, with Marginal Relief for qualifying companies between the relevant limits.

Thresholds may be divided for associated companies and shortened accounting periods. Ring fence oil and gas activities have separate rules, including a 19% small profits rate and 30% main rate; specialist advice is important. Official reference: Corporation Tax rates and allowances.

UK tax treatment of residents and non-residents

UK tax residence is generally determined under the Statutory Residence Test in Schedule 45 to the Finance Act 2013. UK residents are generally liable to UK tax on worldwide income and gains, subject to reliefs and special regimes. Non-residents are generally liable on specified UK-source income and may have UK CGT obligations on UK land and certain other disposals. Double-taxation treaties may modify the outcome.

From 6 April 2025, a residence-based foreign income and gains regime replaced the former remittance-basis approach for qualifying new residents. See tax on foreign income, UK income while living abroad and Statutory Residence Test guidance.

Historical UK tax rates for 2018-19

The following figures are retained for the tax year from 6 April 2018 to 5 April 2019 and are not current tax rates.

Personal income tax: England, Wales and Northern Ireland

The Personal Allowance was £11,850, tapering for income above £100,000. Married Couple's Allowance ranged from £3,360 to £8,695, subject to eligibility, and Blind Person's Allowance was £2,390.

Scotland in 2018-19

Scotland used five non-savings income bands: starter 19%, basic 20%, intermediate 21%, higher 41% and top 46%. These replace the oversimplified Scottish figures in the earlier article. See historical HMRC rates.

Capital gains and Corporation Tax in 2018-19

For most individual gains, CGT rates were 10% and 20%; residential property gains generally attracted 18% and 28%. The individual annual exempt amount was £11,700. Corporation Tax on ordinary company profits was 19%, while ring fence profits and specified investment vehicles were subject to special rules. The historic ring fence main rate was 30% and the small profits rate was 19%.

Key legal provisions and official references

Income Tax Act 2007: establishes the principal UK income tax framework, including rates, allowances and computation rules. Read the Act.

Finance Act 2026, sections 1-4: charges income tax for 2026-27, sets the main and savings rates, and updates dividend ordinary and upper rates. Read the legislation.

Taxation of Chargeable Gains Act 1992: contains the principal statutory rules for CGT, chargeable disposals, gains and reliefs. Read the Act.

Corporation Tax Act 2010: consolidates core rules for company taxation, including computation and certain reliefs. Read the Act.

Finance Act 2013, Schedule 45: provides the Statutory Residence Test for individuals. Read the Schedule.