Income Tax Rates

Income Tax bands of taxable income	2026/27	2025/26	2024/25
Basic rate	£1 to £37,700	£1 to £37,700	£1 to £37,700
Higher rate	£37,701 to £125,140	£37,701 to £125,140	£37,701 to £125,140
Additional rate	£125,401 +	£125,401 +	£125,401 +

Starting rate for savings income	2026/27	2025/26	2024/25
Starting rate limit for savings	£5,000	£5,000	£5,000

Employment and pension rates	2026/27	2025/26	2024/25
Basic rate	20%	20%	20%
Higher rate	40%	40%	40%
Additional rate	45%	45%	45%

Property rates	2026/27	2025/26	2024/25
Basic rate	20%	20%	20%
Higher rate	40%	40%	40%
Additional rate	45%	45%	45%

Savings rates	2026/27	2025/26	2024/25
Starting rate for savings	0%	0%	0%
Basic rate	20%	20%	20%
Higher rate	40%	40%	40%
Additional rate	45%	45%	45%

Dividend rates	2026/27	2025/26	2024/25
Basic rate	10.75%	8.75%	8.75%
Higher rate	35.75%	33.75%	33.75%
Additional rate	39.35%	39.35%	39.35%

Income Tax rates for trustees' income	2026/27	2025/26	2024/25
Dividend ordinary rate	10.75%	8.75%	8.75%
Non-dividend income basic rate	20.00%	20.00%	20.00%
Dividend above ordinary rate	39.35%	39.35%	39.35%
Non-dividend income above basic rate	45.00%	45.00%	45.00%

Default rates (for income not included elsewhere)	2026/27	2025/26	2024/25
Basic rate	20%	20%	20%
Higher rate	40%	40%	40%
Additional rate	45%	45%	45%

Personal allowance	2026/27	2025/26	2024/25
Basic allowance	£12,570	£12,570	£12,570
Income limit for personal allowance	£100,000	£100,000	£100,000

Marriage and civil partnership allowances	2026/27	2025/26	2024/25
Marriage allowance transferable tax limit (born on or after 6 April 1935	£1,260	£1,260	£1,260
Married couples allowance maximum (born before 6 April 1935)	£11,700	£11,270	£11,080
Married couples allowance minimum (born before 6 April 1935)	£4,530	£4,360	£4,280
Income limit for married couples allowance (born before 6 April 1935)	£39,200	£37,700	£37,000

Personal savings allowance	2026/27	2025/26	2024/25
Basic rate taxpayers	£1,000	£1,000	£1,000
Higher rate taxpayers	£500	£500	£500
Additional rate taxpayers	£0	£0	£0

Other income tax allowances	2026/27	2025/26	2024/25
Blind person's allowance	£3,250	£3,130	£3,070
Dividend allowance	£500	£500	£500
Rent-a-room tax free home income (restricted to 50% if letting jointly)	£7,500	£7,500	£7,500
Pre-owned assets de-minimis	£5,000	£5,000	£5,000

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Graham Lloyd (Bedford) Limited

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