Key figures 2025Personal & estate taxation
United Kingdom
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.
2| PROPERTY TAX
| Resident | Non-resident | 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 after March 2025. If the price is over £500,000, this relief cannot be claimed.
- Rates are increased by 5% 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 | |
|---|---|
| Exemption | £3,000 |
| Standard rate | 18% |
| Higher / additional rate | 24% |
| Rate for residential property | |
|---|---|
| Standard rate | 18% |
| Higher rate | 24% |
| Trustees | |
|---|---|
| Exemption | £1,500 |
| Rate | 24% |
| Rate for residential property | 24% |
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.
