Key figures 2026Personal & estate taxation
United Kingdom
Applicable rates as from 6 April 2025 to 5 April 2026
1| INHERITANCE TAX
| Chargeable transfer | Death | Lifetime |
|---|---|---|
| £0 - £325,000 (nil rate band) | 0% | 0% |
| Over £325,000 | 40% | 20%* |
A further nil rate band of £175,000 may be available in relation to current or former residences which pass to the deceased’s children or grandchildren. Spouses are able to transfer their inheritance tax allowance of £325,000 (or the value up to which it is unused) to each other when the second of them die.
*Gifts made during a person’s lifetime (of any amount) are free of IHT as long as the person survives 7 years from the gift.
2| PROPERTY TAX
| Residential Property | Non-residential Property | Rate |
|---|---|---|
| £0 - £125,000 | £0 - £150,000 | 0% |
| £125,000 to £250,000 | £150,001 - £250,000 | 2% |
| £250,001 - £925,000 | Over £250,000 | 5% |
| £925,001 - £1,500,000 | 10% | |
| Over £1,500,000 | 12% |
- First-time buyer relief may apply to residential purchases up to £300,000 and a reduced rate of 5% applies on the portion from £300,000 to £500,000. If the price is over £500,000, this relief cannot be claimed.
- Rates are increased by 5% (on top of the above rates) for additional purchases of residential property by individuals. Rates are increased by a further 2% for purchases by non-UK residents.
- Different rates apply for Scotland and Wales.
3| CAPITAL GAINS TAX
| Main rate | |
|---|---|
| Exemption | £3,000 |
| Standard rate | 18% |
| Higher / additional rate | 24% |
| Trustees and Personal Representatives (Executors and Administrators) | |
|---|---|
| Exemption for Trustees | £1,500 |
| Exemption for Personal Representatives (Executors/Administrators)/ Trustees | £3,000* |
| Rate | 24% |
*Executors/Administrators are entitled to the annual exemption for the tax year in which the death occurred and the following 2 tax years.
4| INCOME TAX
| Dividends | |
|---|---|
| Up to £37,700 | 8.75% |
| £37,700 – £125,140 | 33.75% |
| Over £125,140 | 39.35% |
| Other savings income | |
|---|---|
| Up to £37,700 | 20% |
| £37,700 – £125,140 | 40% |
| Over £125,140 | 45% |
| Other (non-savings) income | |
|---|---|
| Up to £37,700 | 20% |
| £37,700 – £125,140 | 40% |
| Over £125,140 | 45% |
| Income tax allowances | |
|---|---|
| Personal allowance for individuals | £12,570 |
| Personal savings allowance for basic rate taxpayers | £1,000 |
| Personal savings allowance for higher rate taxpayers | £500 |
| Dividend allowance | £500 |
| Property allowance | £1,000 |
| Trading allowance | £1,000 |
- To work out your tax band, add your total dividend income to your other income. You may pay tax at more than one rate. The income tax band is also relevant for calculating Capital Gains Tax and determining whether the standard rate or higher rate of CGT will apply.
