Income Tax Rates and Allowances
| Main Allowances |
2025/26 |
2024/25 |
| Personal Allowance |
£12,570 |
£12,570 |
| Blind Person’s Allowance |
£3,130 |
£3,070 |
| Married Couple’s Allowance (born before 6/4/35) |
£11,270 |
£11,080 |
| Income limit for age-related allowances |
£37,740 |
£37,000 |
Dividend and Savings Allowances
| Allowance |
2025/26 |
2024/25 |
| Dividend Tax Allowance |
£500 |
£500 |
| Personal Savings Allowance (basic rate taxpayer) |
£1,000 |
£1,000 |
| Personal Savings Allowance (higher rate taxpayer) |
£500 |
£500 |
Rate Bands
| Rate Band |
2025/26 |
2024/25 |
| Basic |
£37,700 |
£37,700 |
| Higher |
£37,701-125,140 |
£37,701-125,140 |
| Additional |
Over £125,140 |
Over £125,140 |
*Personal Allowance (PA) will be withdrawn at £1 for every £2 by which ‘adjusted income’ exceeds £100,000...
2025/26 and 2024/25 Rates for General, Savings and Dividend income within each band:
| Rate bands |
G |
S |
D |
| Basic |
20% |
20% |
8.75% |
| Higher |
40% |
40% |
33.75% |
| Additional |
45% |
45% |
39.35% |
General income (salary, pensions, business profits, rent) uses Personal Allowance, basic rate, and higher rate bands before savings income (interest). To the extent that savings income falls in the first £5,000 of the basic rate band, it is taxed at nil rather than 20%. The PSA (see above) will tax interest at nil where it would otherwise be taxable at 20% or 40%.
High Income Child Benefit Charge (HICBC)
1% of child benefit for each £200 of net income between £60,000 and £80,000.
