26-27 Tax Rates, Thresholds & Benefits

Attached is a schedule of UK tax rates, the thresholds at which they are applied, plus key benefits available to us as individuals and business owners for the 26-27 tax year and 2 previous tax years.

Highlights and Changes from 25-26:

• Class 1 NIC Lower Earnings Limit (LEL), the earnings point at which statutory benefits are accrued, up from £6,500 to £6,708 per year.

  
  

• Class 1 NIC Secondary Threshold (ST), the earnings point at which employer’s NI is charged, unchanged at £5,000. Employer’s NI rate unchanged at 15%.

  
  

• Employment Allowance, the amount of employer’s NI reimbursed to eligible employers, unchanged at £10,500.

  
  

• Class 3 NIC rate, voluntary contributions to top up an individual’s NI record, up from £907.40 to £956.80 per year.

  
  

• National Minimum Wage / National Living Wage, up from £12.21 to £12.71 per hour for those aged 21 and over. All other rates increased.

  
  

• Child Benefit, up to £26.70 (from £26.05) for the eldest or only child and £17.60 (from £17.25) for all other children.

  
  

• Dividend tax rates, increased for basic and higher rate taxpayers:– Basic rate up from 8.75% to 10.75%– Higher rate up from 33.75% to 35.75%– Additional rate unchanged at 39.35%Dividend allowance unchanged at £500.

  
  

• Income tax on savings income, no change in 26–27 (rates remain 20% / 40% / 45%; increases apply from 27–28).

  
  

• Income tax on property income, no change in 26–27 (rates remain 20% / 40% / 45%; increases apply from 27–28).

  
  

• Capital Gains Tax (CGT), main rates unchanged at 18% (basic rate) and 24% (higher rate). Annual exempt amount unchanged at £3,000.

  
  

• Student loan repayment thresholds:– Plan 1 increased to £26,900 (from £26,065)– Plan 4 increased to £33,795– Plan 2 (£29,385) and Plan 5 (£25,000) unchanged.

  
  

• Stamp Duty Land Tax, no changes to rates or bands from 25–26

Any problems viewing or downloading the attachment, please let me know.