2026/27 key tax rates and allowances at a glance

 

Here is a practical roundup of the key tax rates and allowances small businesses and directors need for the 2026/27 tax year (6 April 2026 to 5 April 2027). Every figure below was verified against live GOV.UK guidance on 20 October 2026.

 

INCOME TAX AND DIVIDENDS

Personal Allowance: £12,570. Basic rate 20% applies on income between £12,571 and £50,270. Dividend allowance: £500 per year. Above the allowance, dividend tax rates are 10.75% (basic rate), 35.75% (higher rate) and 39.35% (additional rate).

 

CAPITAL GAINS TAX

Annual exempt amount: £3,000 for individuals. From 6 April 2026, CGT rates are 18% and 24% for individuals. Business Asset Disposal Relief is charged at 18% on qualifying gains, with a £1 million lifetime limit.

 

CORPORATION TAX

Main rate 25% on profits over £250,000. Small profits rate 19% on profits of £50,000 or less. Marginal Relief applies for profits between £50,000 and £250,000.

 

EMPLOYING PEOPLE

Employer National Insurance: 15% on earnings above the secondary threshold of £5,000 a year. Employment Allowance: £10,500 for 2026/27. National Minimum Wage from 1 April 2026: National Living Wage (21 and over) £12.71 per hour; 18 to 20 £10.85 per hour; under 18 and apprentices £8 per hour.

 

VAT

Registration threshold: £90,000 taxable turnover over the last 12 months.

 

Rates can change at Budgets and fiscal events, so always double-check the live GOV.UK guidance before making decisions based on these figures.