For employees The national insurance contributions (NICs) rates and annual thresholds for employees for 2025/26 are as follows: Employees’ Class 1 NICs 2025/26 2024/25 Lower earnings limit (LEL) £6,500 £6,396 Primary threshold (PT) £12,570 £12,570 Upper earnings limit (UEL) £50,270 £50,270 Earnings between the LEL and the PT 0% 0% Earnings between the PT and […]

Motor vehicles Continuing the topic seen above on double cab pick-up vehicles, a similar change in approach applies in relation to plant and machinery capital allowances claims. From April 2025, most double cab pick-up vehicles with a payload of 1 tonne or more will need to be treated as cars for capital allowances purposes. This […]

Self-employed individuals pay Class 2 and Class 4 National Insurance Contributions (NICs). The relevant rates and thresholds are:   2025/26 2024/25 Class 2 NICs per year – mandatory* £nil £nil Class 2 NICs per year – voluntary* £182.00 £179.40 Small profits threshold (SPT) £6,845 £6,725 Lower profits limit (LPL) £12,570 £12,570 Upper profits limit (UPL) […]

If you let out residential or commercial property, the profits are taxed as part of your ‘other income’. If you sell property that has been rented out, capital gains tax is likely to apply. Generally, rental business activity attracts fewer tax reliefs than trading ventures. However, if a residential property meets the strict definition of […]

From 1 April 2025, the VAT registration and deregistration thresholds will remain at £90,000 and £88,000 respectively. There have been no changes to the rates of VAT and the standard rate continues to be set at 20%. In a key change to VAT, private school fees, which have been exempt from VAT, will be made […]

Rates from 1 April 2025 Corporation tax rates and thresholds for the financial year to 31 March 2026 remain unchanged as follows: Financial year to 31 March 2026 Main rate 25% Small profits rate 19% Small profit threshold £50,000 Main rate threshold £250,000 Marginal relief fraction 3/200 Effective marginal relief rate 26.5% The thresholds must […]

Despite numerous rumours of possible changes to the taxation of pensions in the run up to the budget, the Chancellor decided not to make significant changes after all. The ability to receive a 25% tax-free lump sum of up to £268,275 (or higher in some cases) remains. Individual contributions continue to attract income tax relief […]

The main rate of IHT remains at 40%, reduced to 36% for estates where 10% or more is left to charity. The IHT nil rate band will continue to be frozen at £325,000 until 2030. The additional nil rate band for passing on the family home to direct descendants (residence nil rate band) will also […]

Significant tax changes have been announced for UK resident non-domiciled individuals; namely those individuals spending most of their time in the UK but without permanently settling here. The concept of ‘domicile’ will be removed from the UK tax system and replaced by a regime based on years of tax residence. Income and capital gains taxes […]

England and Northern Ireland – thresholds It has been confirmed that the 0% thresholds for Stamp Duty Land Tax (SDLT) will be reduced from 1 April 2025 as follows:   From 1 April 2025 1 April 2024 to 31 March 2025 Main threshold £125,000 £250,000 First-time buyers’ threshold £300,000 £425,000 SDLT on additional dwellings such […]