Policy paper

Annex A: rates and allowances

Updated 28 November 2025

© Crown copyright 2025

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This publication is available at https://www.gov.uk/government/publications/budget-2025-overview-of-tax-legislation-and-rates-ootlar/annex-a-rates-and-allowances

Personal tax and benefits

Income Tax bands of taxable income

Main rates Tax year 2025 to 2026 Tax year 2026 to 2027
Basic rate £1 to £37,700 £1 to £37,700
Higher rate £37,701 to £125,140 £37,701 to £125,140
Additional rate Over £125,140 Over £125,140

Income Tax rates

Main rates Tax year 2025 to 2026 Tax year 2026 to 2027
Basic rate 20% 20%
Higher rate 40% 40%
Additional rate 45% 45%

These figures apply to non-savings non-dividend income, including income from employment, property, or pensions. From 2017 to 2018, the main rates were separated into the main rates, the savings rates and the default rates.

Savings rates

Savings rates Tax year 2025 to 2026 Tax year 2026 to 2027
Starting rate for savings 0% 0%
Savings basic rate 20% 20%
Savings higher rate 40% 40%
Savings additional rate 45% 45%

These figures apply to savings income.

Dividend rates Tax year 2025 to 2026 Tax year 2026 to 2027
Dividend ordinary rate 8.75% 10.75%
Dividend upper rate 33.75% 35.75%
Dividend additional rate 39.35% 39.35%

These figures apply to dividend income received above the £500 tax-free dividend allowance.

Default rates Tax year 2025 to 2026 Tax year 2026 to 2027
Default basic rate 20% 20%
Default higher rate 40% 40%
Default additional rate 45% 45%

These figures apply to non-savings and non-dividend income of any taxpayer that is not subject to either the main rates or the Scottish rates of Income Tax.

Starting rates for savings income

Tax year 2025 to 2026 Tax year 2026 to 2027
Starting rate for savings 0% 0%
Starting rate limit for savings £5,000 £5,000

Income Tax rates for trustees’ income

Tax year 2025 to 2026 Tax year 2026 to 2027
Thresholds £500 de minimis trusts amount £500 de minimis trusts amount
Dividend ordinary rate 8.75% 10.75%
Default basic rate 20% 20%
Dividend trust rate for accumulated and discretionary dividend income 39.35% 39.35%
Trust rate for other accumulated and discretionary income 45% 45%

Income Tax allowances

Personal Allowance

Tax year 2025 to 2026 Tax year 2026 to 2027
Personal allowance £12,570 £12,570
Income limit for Personal Allowance £100,000 £100,000
Income limit for Married Couple’s Allowance £37,700 £39,200

The Personal Allowance reduces where the income is above £100,000 — by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of date of birth.

The income limit for Married Couple’s Allowance is £39,200. The allowance is reduced by £1 for every £2 of income over this limit.

Marriage Allowance

Tax year 2025 to 2026 Tax year 2026 to 2027
Marriage Allowance £1,260 £1,260

This transferable allowance is available to married couples and civil partners who are not in receipt of Married Couple’s Allowance. A spouse or civil partner who is not liable to Income Tax, or not liable at the higher or additional rates, can transfer this amount of their unused personal allowance to their spouse or civil partner. The recipient must not be liable to Income Tax at the higher or additional rates.

Married Couple’s Allowance for those born before 6 April 1935

Tax year 2025 to 2026 Tax year 2026 to 2027
Maximum amount of Married Couple’s Allowance £11,270 £11,700
Minimum amount of Married Couple’s Allowance £4,360 £4,530

The relief for this allowance is given at 10%.

Blind Person’s Allowance

Tax year 2025 to 2026 Tax year 2026 to 2027
Blind Person’s Allowance £3,130 £3,250

Dividend Allowance

Tax year 2025 to 2026 Tax year 2026 to 2027
Dividend Allowance £500 £500

Personal Savings Allowance

Tax year 2025 to 2026 Tax year 2026 to 2027
Personal Savings Allowance for basic rate taxpayers £1,000 £1,000
Personal Savings Allowance for higher taxpayers £500 £500

From April 2016, the new Personal Savings Allowance means that basic rate taxpayers do not have to pay tax on the first £1,000 of savings income they receive and higher rate taxpayers do not have tax to pay on their first £500 of savings income.

Qualifying Care Relief

The amount of Income Tax relief available for foster carers and shared lives carers using Qualifying Care Relief will increase in line with CPI inflation. The changes will take effect from 6 April 2026, for the tax year 2026 to 2027.

Tax year 2025 to 2026 Tax year 2026 to 2027
Annual fixed amount £19,690 £20,440
Weekly amount — children under 11 years £415 £435
Weekly amount — children 11 years or older £495 £515
Weekly amount — adults £495 £515

Company car tax — all cars

CO2 emissions, g/km Electric range (miles) Appropriate percentage (%) for 2025 to 2026 Appropriate percentage (%) for 2026 to 2027 Appropriate percentage (%) for 2027 to 2028 Appropriate percentage (%) for 2028 to 2029 Appropriate percentage (%) for 2029 to 2030
0 Not applicable 3 4 5 7 9
1 to 50 More than 130 3 4 5 18 19
1 to 50 70 to 129 6 7 8 18 19
1 to 50 40 to 69 9 10 11 18 19
1 to 50 30 to 39 13 14 15 18 19
1 to 50 Less than 30 15 16 17 18 19
51 to 54 — 16 17 18 19 20
55 to 59 — 17 18 19 20 21
60 to 64 — 18 19 20 21 22
65 to 69 — 19 20 21 22 23
70 to 74 — 20 21 21 22 23
75 to 79 — 21 21 21 22 23
80 to 84 — 22 22 22 23 24
85 to 89 — 23 23 23 24 25
90 to 94 — 24 24 24 25 26
95 to 99 — 25 25 25 26 27
100 to 104 — 26 26 26 27 28
105 to 109 — 27 27 27 28 29
110 to 114 — 28 28 28 29 30
115 to 119 — 29 29 29 30 31
120 to 124 — 30 30 30 31 32
125 to 129 — 31 31 31 32 33
130 to 134 — 32 32 32 33 34
135 to 139 — 33 33 33 34 35
140 to 144 — 34 34 34 35 36
145 to 149 — 35 35 35 36 37
150 to 154 — 36 36 36 37 38
155 to 159 — 37 37 37 38 39
160 and over — 37 37 37 38 39

For all cars, drivers must add 4% to their appropriate percentage if the car is propelled solely by diesel. This is capped at 37% until tax year 2027 to 2028, 38% in tax year 2028 to 2029 and 39% in tax year 2029 to 2030.

Cars that meet the Real Driving Emissions Step 2 (RDE2) standard are exempt from the diesel supplement. The RDE2 standard sets a maximum permitted level of car NOx emissions in real world driving situations, and it is measured through portable emissions-measuring equipment in a variety of real driving trips.

Plug-in Hybrid Electric Vehicles (PHEVs) first registered and made available from 1 January 2025 to 5 April 2028, under any emission standard other than Euro 6d-ISC-FCM or Euro 6e, have a deemed CO2 emission of 1 g/km.

National Insurance contributions

Employee and employer Class 1 rates and thresholds (£ per week)

Tax year 2025 to 2026 Tax year 2026 to 2027
Lower Earnings Limit (LEL) £125 £129
Primary Threshold (PT) £242 £242
Secondary Threshold (ST) £96 £96
Upper Earnings Limit (UEL) £967 £967
Upper Secondary Threshold for under 21s £967 £967
Apprentice Upper Secondary Threshold (AUST) for under 25s £967 £967
Freeport Upper Secondary Threshold £481 £481
Investment Zones Upper Secondary Threshold £481 £481
Veteran Upper Secondary Threshold £967 £967
Employment Allowance (per eligible employer) £10,500 per year £10,500 per year

Employee’s (primary) Class 1 contribution rates (per cent)

Earnings band Tax year 2025 to 2026 Tax year 2026 to 2027
Below Lower Earnings Limit (LEL) Not applicable Not applicable
Lower Earning Limit (LEL) to Primary Threshold (PT) 0% 0%
Primary Threshold (PT) to Upper Earnings Limit (UEL) 8% 8%
Above Upper Earnings Limit (UEL) 2% 2%

Married woman’s reduced rate for (primary) Class 1 contribution rates

Tax year 2025 to 2026 Tax year 2026 to 2027
Weekly earnings from between the Primary Threshold (PT) and Upper Earnings Limit (UEL) 1.85% 1.85%
Weekly earnings above the Upper Earnings Limit (UEL) 2% 2%

Employer’s (secondary) Class 1 contribution rates

Earnings band Tax year 2025 to 2026 Tax year 2026 to 2027
Below Secondary Threshold (ST) 0% 0%
Above Secondary Threshold (ST) 15% 15%

Employer’s (secondary) Class 1 contribution rates for employees under 21

Earnings band Tax year 2025 to 2026 Tax year 2026 to 2027
Below Upper Secondary Threshold (UST) 0% 0%
Above Upper Secondary Threshold (UST) 15% 15%

Employer’s (secondary) Class 1 contribution rates for Apprentices under 25

Earnings band Tax year 2025 to 2026 Tax year 2026 to 2027
Below Apprentice Upper Secondary Threshold (AUST) 0% 0%
Above Apprentice Upper Secondary Threshold (AUST) 15% 15%

Employer’s (secondary) Class 1 contribution rates for eligible employers in Freeports

Earnings band Tax year 2025 to 2026 Tax year 2026 to 2027
Below Freeports Upper Secondary Threshold 0% 0%
Above Freeports Upper Secondary Threshold 15% 15%

Employer’s (secondary) Class 1 contribution rates for eligible employers in Investment Zones

Earnings band Tax year 2025 to 2026 Tax year 2026 to 2027
Below Investment Zone Upper Secondary Threshold 0% 0%
Above Investment Zone Upper Secondary Threshold 15% 15%

Employer’s (secondary) Class 1 contribution rates for qualifying veterans

Earnings band Tax year 2025 to 2026 Tax year 2026 to 2027
Below Veterans Upper Secondary Threshold (VUST) 0% 0%
Above Veterans Upper Secondary Threshold (VUST) 15% 15%

Self-employed Class 2 contributions rates and thresholds (£ per week)

Class 2 thresholds (£ annual profit)

Tax year 2025 to 2026 Tax year 2026 to 2027
Small Profits Thresholds (SPT) £6,845 £7,105
Lower Profits Thresholds (LPT) £12,570 £12,570

Class 2 contribution rates (£ per week)

Annual Profits Band Tax year 2025 to 2026 Tax year 2026 to 2027
Below Small Profits Threshold (SPT) £3.50 (voluntary) £3.65 (voluntary)
Above Small Profits Threshold (SPT) to Lower Profits Threshold (LPT) £0 £0
Above Lower Profits Threshold (LPT) £0 £0
Special Class 2 rate for share fisherman £4.15 £4.30
Special Class 2 rate for volunteer development workers £6.25 £6.45

Class 3 National Insurance contributions rates (£ per week)

Tax year 2025 to 2026 Tax year 2026 to 2027
Voluntary contributions £17.75 £18.40

Self-employed Class 4 rates and thresholds (£ per year)

Tax year 2025 to 2026 Tax year 2026 to 2027
Lower Profits Limit (LPL) £12,570 £12,570
Upper Profits Limit (UPL) £50,270 £50,270

Class 4 contribution rates

Annual Profits band Tax year 2025 to 2026 Tax year 2026 to 2027
Below Lower Profits Limit (LPL) 0% 0%
Lower profits Limit (LPL) to Upper Profits Limit (UPL) 6% 6%
Above Upper Profits Limit (UPL) 2% 2%

Child Benefit and Guardian’s Allowance

Following the publication of Consumer Price Index (CPI) figures for September 2025, the government announced at Budget 2025 the new benefits rates for 2026 to 2027.

Child Benefit (£ per week)

Tax year 2025 to 2026 Tax year 2026 to 2027
Eldest or only child £26.05 £27.05
Other children £17.25 £17.90

Guardian’s Allowance (£ per week)

Tax year 2025 to 2026 Tax year 2026 to 2027
Guardian’s Allowance £22.10 £22.95

Capital, assets and property

Pensions tax relief

Tax year 2025 to 2026 Tax year 2026 to 2027
Lump Sum Allowance £268,275 £268,275
Lump Sum and Death Benefit Allowance £1,073,100 £1,073,100
Overseas Transfer Allowance £1,073,100 £1,073,100
Annual Allowance Limit £60,000 £60,000
Money Purchase Annual Allowance £10,000 £10,000
Tapered Annual Allowance (applies when an individual has ‘adjusted income’ over this amount provided the ‘threshold income’ test is met) £260,000 £260,000

Tax free savings accounts

Tax year 2025 to 2026 Tax year 2026 to 2027
Individual Savings Account (ISA) subscription limit £20,000 £20,000
Junior ISA subscription limit £9,000 £9,000
Child Trust Fund (CTF) subscription limit £9,000 £9,000

Capital Gains Tax

Rates for gains on assets other than residential property and carried interest

Tax year 2025 to 2026 Tax year 2026 to 2027
Income Tax basic rate payer 18% 18%
Income Tax higher rate payer 24% 24%

Rates for individuals for gains on residential property which is not eligible for Private Residence Relief

Tax year 2025 to 2026 Tax year 2026 to 2027
Income Tax basic rate payer 18% 18%
Income Tax higher rate payer 24% 24%

Rates for individuals for gains on carried interest

Tax year 2025 to 2026 Tax year 2026 to 2027
Income Tax basic rate payer 32% Not applicable
Income Tax higher rate payer 32% Not applicable

From 6 April 2026, the tax regime for carried interest will sit wholly within the Income Tax framework. There is therefore no applicable Capital Gains Tax rate for carried interest for the tax year 2026 to 2027.

Rate for trustees and personal representatives for gains on assets other than residential property and carried interest

Tax year 2025 to 2026 Tax year 2026 to 2027
Income Tax basic rate payer 24% 24%
Income Tax higher rate payer 24% 24%

Rate for trustees and personal representatives for gains on residential property which is not eligible for Private Residence Relief

Tax year 2025 to 2026 Tax year 2026 to 2027
Income Tax basic rate payer 24% 24%
Income Tax higher rate payer 24% 24%

Rate for personal representatives for gains on carried interest

Tax year 2025 to 2026 Tax year 2026 to 2027
Income Tax basic rate payer 32% Not applicable
Income Tax higher rate payer 32% Not applicable

From 6 April 2026, the tax regime for carried interest will sit wholly within the Income Tax framework. There is therefore no applicable Capital Gains Tax rate for carried interest for the tax year 2026 to 2027.

Annual exempt amount (AEA) for individuals and personal representatives

Tax year 2025 to 2026 Tax year 2026 to 2027
Income Tax basic rate payer £3,000 £3,000
Income Tax higher rate payer £3,000 £3,000

Annual exempt amount (AEA) for most trustees

Tax year 2025 to 2026 Tax year 2026 to 2027
Income Tax basic rate payer £1,500 £1,500
Income Tax higher rate payer £1,500 £1,500

Rate on gains subject to business asset disposal relief

Tax year 2025 to 2026 Tax year 2026 to 2027
Income Tax basic rate payer 14% 18%
Income Tax higher rate payer 14% 18%

Rate on gains subject to investors’ relief

Tax year 2025 to 2026 Tax year 2026 to 2027
Income Tax basic rate payer 14% 18%
Income Tax higher rate payer 14% 18%

Business asset disposal relief: lifetime limit on qualifying gains

Tax year 2025 to 2026 Tax year 2026 to 2027
Income Tax basic rate payer £1 million £1 million
Income Tax higher rate payer £1 million £1 million

Investors’ relief: lifetime limit on gains for external investors

Tax year 2025 to 2026 Tax year 2026 to 2027
Income Tax basic rate payer £1 million £1 million
Income Tax higher rate payer £1 million £1 million

Temporary Repatriation Facility

Tax year 2025 to 2026 Tax year 2026 to 2027 Tax year 2027 to 2028
Rate of designated foreign income and gains (FIG) 12% 12% 15%

The Temporary Repatriation Facility (TRF) is available to former remittance basis users who have unremitted foreign income and gains for tax years prior to 2025 to 2026. Individuals can elect to pay tax at the TRF rate on offshore funds that they designate. The designated funds will then not be taxed on remittance to the UK. Former remittance basis users can also use the TRF to designate distributions from trust structures, which are matched to foreign income and gains which arose prior to April 2025.

Inheritance Tax

Tax year 2025 to 2026 Tax year 2026 to 2027
Rate (for estates) 40% 40%
Reduced rate (for estates leaving 10% or more to charity) 36% 36%
Rate (for chargeable lifetime transfers) 20% 20%
Nil-rate band limit £325,000 £325,000
Residence nil-rate band limit £175,000 £175,000
Residence nil-rate band threshold for start of tapered withdrawal

100% of agricultural property relief and business property relief allowance		 £2 million


N/A		 £2 million


£1 million

Stamp Duty Land Tax — residential property from 1 April 2025

Property value Rate (on portion of value above threshold) Rate (on portion of value above threshold) if purchase is of an additional residential property Rate (on portion of value above threshold) if purchase is of residential property by certain non-UK residents Rate (on portion of value above threshold) if purchase is of an additional residential property and by certain non-UK residents
£0 to £125,000 0% 5% 2% 7%
£125,001 to £250,000 2% 7% 4% 9%
£250,001 to £925,000 5% 10% 7% 12%
£925,001 to £1.5 million 10% 15% 12% 17%
Over £1.5 million 12% 17% 14% 19%

Check HMRC guidance on whether the higher rate applies and whether a purchase is a ‘non-resident’ transaction.

Stamp Duty Land Tax — residential leases from 1 April 2025

Net Present Value (NPV) of the rent Rate (on portion of value above threshold)
£0 to £125,000 0%
Over £125,000 1%

Rates are increased by 2 percentage points (%) for certain ‘non-resident’ transactions.

Stamp Duty Land Tax — rates for first time-buyers purchasing properties worth £500,000 or less from 1 April 2025

Property value Rate (on portion of value above threshold) if purchase qualifies for first-time buyer relief
£0 to £300,000 0%
£300,001 to £500,000 5%

Rates are increased by 2 percentage points (%) for certain ‘non-resident’ transactions.

Stamp Duty Land Tax — higher rate for certain corporate transactions involving dwellings worth more than £500,000 from 31 October 2024

Property value Rate on whole of purchase price
Over £500,000 17%

Rates are increased by 2 percentage points (%) for certain ‘non-resident’ transactions.

Stamp Duty Land Tax — non-residential property on or after 17 March 2016

Purchase and Premium Transactions

Property Value Rate (on portion of value above threshold)
£0 to £150,000 0%
£150,001 to £250,000 2%
£250,001 and over 5%

Stamp Duty Land Tax — non-residential leases on or after 17 March 2016

Net Present Value (NPV) of the lease Rate (on portion of value above threshold)
£0 to £150,000 0%
£150,001 to £5 million 1%
Over £5 million 2%

Annual Tax on Enveloped Dwellings (ATED)

The ATED charges increase automatically each year in line with inflation (based on the previous September’s Consumer Price Index (CPI)). 

The ATED annual charges will rise by 3.8% from 1 April 2026 in line with the September 2025 CPI. 

The table shows the charges for the 2025 to 2026 period and what the uplifted charges will be for the 2026 to 2027 period.

Taxable value of the property Charge for tax year 2025 to 2026 Charge for tax year 2026 to 2027
£500,001 to £1 million £4,450 £4,600
£1,000,001 to £2 million £9,150 £9,450
£2,000,001 to £5 million £31,050 £32,200
£5,000,001 to £10 million £72,700 £75,450
£10,000,001 to £20 million £145,950 £151,450
Over £20 million £292,350 £303,450

Stamp Duty and Stamp Duty Reserve Tax

No Stamp Duty is charged where the certified consideration is less than £1,000.

Stamp Duty is charged on the purchase of own shares by a company under section 690 Companies Act 2006. The SH03 form is the chargeable instrument.

Where an instrument transfers either Intellectual Property (IP) or goodwill and shares, Stamp Duty is not chargeable on the consideration that relates to the IP or goodwill. A just and reasonable apportionment must be made.

Where an instrument grants a call option, and is itself a marketable security, Stamp Duty is charged at 0.5% of the consideration given for the premium.

Transfers of, and agreements to transfer securities

Standard Rate Higher Rate
Stamp Duty 0.5% (rounded up to next £5) Not applicable
Stamp Duty Reserve Tax 0.5% Not applicable

Transfers of securities to clearance services and depositary receipt issuers

Standard Rate Higher Rate
Stamp Duty Not applicable 1.5% (rounded up to next £5)
Stamp Duty Reserve Tax Not applicable 1.5%

Some clearance services choose to elect into the standard 0.5% STS regime. No 1.5% charge arises on transfers to such clearance services.

Rates for transfers on sale of interests in partnerships which hold shares and certain other securities

The Stamp Duty charge is capped at 0.5% of the market value of any shares held by the partnership (less any loans secured on them), multiplied by the percentage partnership interest transferred.

Bearer instruments

Transaction Stamp Duty Stamp Duty Reserve Tax
Transfer of bearer instrument 1.5% (rounded up to next £5) 0.5%
Transfer of non-UK bearer instrument by usage 0.2% of market value (rounded up to next £5) Not applicable
Transfer of deposit certificate for stock of single non-UK company 0.2% of market value (rounded up to next £5) Not applicable

In 2015 the Companies Act 2006 was amended to prohibit the creation of bearer shares by UK companies, and all existing bearer shares had to be cancelled or converted into registered shares.

Therefore, the charge remains only on the transfer on sale of bearer shares issued by or on behalf of non-UK companies, if the transfer occurs in the UK.

It may also apply on the transfer of certain bearer debt securities.

Stamp Duty on legacy land transactions

Where an agreement for a land transaction was entered into on or before 10 July 2003, but the instrument legally completing that contract is executed after that date, then the transaction will be subject to Stamp Duty, not Stamp Duty Land Tax. However, if the contract was not substantially performed before 10 July 2003 and has been varied, or rights under it have been assigned or sub-sold after 10 July 2003, Stamp Duty Land Tax may apply on completion.

If an instrument was executed to complete a land transaction at the time of the original transfer (but is only now being presented to HMRC), then the rate in force at that time will apply.

For rates before 28 March 2000, see the Stamp Taxes Manual, Appendix C, pages 324 to 334 on the National Archives website.

Freehold conveyances and transfers for instruments legally completing contracts made on or after 3 July 1997

The Stamp Duty charged is rounded to the next £5. For instruments legally completing contracts made on or before 2 July 1997, the rate is 1%.

Certified transfer value Instruments executed between 28 March 2000 and 16 March 2005 Instruments executed between 17 March 2005 and 22 March 2006 Instruments executed after 22 March 2006
£60,000 and under nil nil nil
£120,000 and under 1% nil nil
£125,000 and under 1% 1% nil
£250,000 and under 1% 1% 1%
£500,000 and under 3% 3% 3%
Over £500,000 or uncertified 4% 4% 4%

Leasehold property — average rent of lease

The rates in the following table are based on the average rent of the lease.

The Stamp Duty charged is rounded to the next £5.

Stamp Duty rates: leasehold — average rent

Term of lease Rate
7 years or less — annual rent £5,000 or less nil
7 years or less — annual rent more than £5,000 1%
7 to 35 years 2%
35 to 100 years 12%
Over 100 years 24%

Leasehold property — lease premium

The rates in the following table are based on the certified value in the transfer document.

The Stamp Duty charged is rounded to the next £5.

Stamp Duty rates: leasehold — on lease premium

Certified value Rate Rate
£60,000, annual rent £600 or less nil
£250,000 1%
£500,000 3%
More than £500,000 4%

Business and financial services

Corporation Tax rates

Financial year 2025 to 2026 Financial year 2026 to 2027
Main rate 25% 25%
Small profits rate 19% 19%
Lower threshold £50,000 £50,000
Upper threshold £250,000 £250,000
Marginal relief standard fraction 3/200ths 3/200ths
North Sea oil and gas ring fence profits See footnote See footnote

Marginal relief is available for companies with profits between £50,000 and £250,000. Find out to how to calculate marginal relief.

For North Sea oil and gas ring fence profits the main rate is 30% and the small profits rate is 19%. The marginal relief ring fence fraction is 11/400ths. The lower and upper limits for ring fence profits are £50,000 and £250,000 respectively.

For accounting periods beginning on or after 1 January 2026 the Unassessed Transfer Pricing Profits rules come into effect.  Profits assessed under these rules will be charged at the underlying Corporation Tax rate plus 6%.

Corporation Tax allowance and reliefs

Financial year 2025 to 2026 Financial year 2026 to 2027
Plant and machinery: main rate expenditure 18% 14%
Plant and machinery: special rate expenditure 6% 6%
Structures and Building Allowance (SBA) 3% 3%
Annual Investment Allowance (AIA) £1 million £1 million
Enhanced Capital Allowances in Freeports 100% 100%
Enhanced Capital Allowances in Investment Zones 100% 100%
Enhanced Structures and Buildings Allowance in Freeports 10% 10%
Enhanced Structures and Buildings Allowance in Investment Zones 10% 10%
50% Special Rate First Year Allowance 50% 50%
Full Expensing: 100% First Year Allowance 100% 100%
40% Main Rate First-Year Allowance (from 1 January 2026) 40% 40%
Research and Development (R&D) tax credits SME scheme deduction rate Not applicable Not applicable
R&D tax credits SME scheme payable credit Not applicable Not applicable
R&D Intensive SME additional deduction 86% 86%
R&D Intensive SME payable credit rate 14.5% 14.5%
R&D Intensive SME intensity ratio threshold 30% 30%
R&D Expenditure Credit (Accounting Periods beginning before 1 April 2024) Not applicable Not applicable
R&D Expenditure Credit (Accounting Periods beginning on or after 1 April 2024) 20% 20%
Patent Box 10% 10%
Film tax relief 25% 25%
Audio-Visual and Video Game Expenditure Credit 34%, 39% or 53% 34%, 39% or 53%
High-end TV tax relief 25% 25%
Videogames tax relief 25% 25%
Animation tax relief 25% 25%
Children’s TV tax relief 25% 25%
Open ended investment companies and authorised unit trusts 20% 20%

The 40% Main Rate First-Year Allowance is available for qualifying expenditure incurred on or after 1 January 2026.

Film tax relief, high-end TV tax relief, animation tax relief and children’s TV tax relief will sunset from 1 April 2027. Companies can claim the Audio-Visual Expenditure Credit instead.

Video Games Tax Relief will sunset from 1 April 2027. Companies can claim the Video Games Expenditure Credit instead.

The Video Games Expenditure Credit has a rate of 34%. Under the Audio-Visual Expenditure Credit, film and high-end TV have a rate of 34% and children’s TV and animated productions have a rate of 39%. From 1 April 2024, low-budget films are eligible for a rate of 53%. From 1 January 2025, visual effects expenditure on films and high-end TV programmes is eligible for a rate of 39%.

For open ended investment companies and authorised unit trusts the applicable corporation tax rate is 20%.

Cultural corporation tax allowance and reliefs

Financial year 2025 to 2026 Financial year 2026 to 2027
Museums and Galleries Exhibition Tax Relief 40% or 45% 40% or 45%
Theatre Tax Relief 40% or 45% 40% or 45%
Orchestra Tax Relief 45% 45%

For Museums and Galleries Exhibition Tax Relief, 2 rates of reliefs are provided. The lower for non-touring productions and the higher for touring productions.

For Theatre Tax Relief, 2 rates of reliefs are provided. The lower for non-touring productions and the higher for touring productions.

Pillar 2 Global Minimum Tax

For accounting periods beginning on or after 31 December 2023
Global revenue threshold €750 million
Multinational Top-up Tax — Minimum Effective Tax Rate 15%
Domestic Top-up Tax — Minimum Effective Tax Rate 15%

Residential property developer tax

Rate from 1 April 2022 onwards UK annual allowance
4% £25 million

Bank Levy

Chargeable equity and long-term chargeable liabilities Short-term chargeable liabilities
1 January 2021 onwards 0.05% 0.1%

Bank surcharge

Rate on profits Group allowance
April 2023 onwards 3% £100 million

Diverted Profits Tax

Financial year 2025 to 2026 Financial year 2026 to 2027
Headline rate 31% 31%
Adjusted ring fence profits or notional adjusted ring fence profits 55% 55%
Banking surcharge profits or notional banking surcharge 33% 33%

Digital Services Tax

1 April 2020 onwards Global revenue threshold UK revenue threshold UK revenue allowance
2% £500 million £25 million £25 million

Economic Crime (Anti-Money Laundering) Levy

Entity or payee size UK revenue threshold Financial Year 2025 to 2026 Financial Year 2026 to 2027
Small £10.2 million or less Not applicable (exempt) Not applicable (exempt)
Band A

Previously ‘Medium’ to end FY25

More than £10.2 million, not more than £36 million		 £10,000 £10,200
Band B

Previously ‘Large’ to end FY25

FY26 onwards
More than £36 million, not more than £1 billion

More than £36 million, not more than £500 million		 £36,000 £36,000
Band C

New from FY26		 More than £500m, not more than £1bn — £500,000
Band D

Previously ‘Very large’ to end FY25		 More than £1 billion £500,000 £1,000,000

UK oil and gas taxes

Financial year 2024 to 2025 Financial year 2025 to 2026 Financial year 2026 - 2027
Petroleum revenue tax 0% 0% 0%
Ring fence corporation tax 30% 30% 30%
Supplementary charge 10% 10% 10%

For North Sea oil and gas ring fence profits the main rate is 30% and the small profits rate is 19%. The marginal relief ring fence fraction is 11/400ths.

Energy Profits Levy

Date Rate
26 May 2022 to 31 December 2022 25%
1 January 2023 to 31 October 2024 35%
1 November 2024 to 31 March 2030 38%

Energy Profits Levy — Energy Security Investment Mechanism

Financial year 2024 to 2025 Financial year 2025 to 2026
Oil threshold price $74.21 per barrel $76.12 per barrel
Gas threshold price £0.57 pence per therm £0.59 pence per therm

Electricity Generator Levy

Financial year 2024 to 2025 Financial year 2025 to 2026 Financial year 2026 to 2027
Rate 45% 45% 45%
Benchmark price £77.94 per megawatt hour £79.95 per megawatt hour To be uprated by CPI as at December 2025
Allowance £10 million £10 million £10 million

Business rates

Financial 2025 to 2026 Financial year 2026 to 2027
England standard multiplier 55.5 pence 48 pence
England small business multiplier 49.9 pence 42 pence
England standard retail, hospitality and leisure (RHL) multiplier — 43 pence
England small business RHL multiplier — 38.2 pence
England high-value multiplier — 50.8 pence

Small business multiplier applies to non-RHL properties with a rateable value of less than £51,000. 

Standard multiplier applies to non-RHL properties with a rateable value of £51,000 - £499,999. 

Small business RHL multiplier applies to eligible RHL properties with a rateable value of less than £51,000.  

Standard RHL multiplier applies to eligible RHL properties with a rateable value of £51,000 - £499,999.  

Details on which properties are eligible for the RHL multipliers are available. 

High-value multiplier applies to properties with a rateable value of £500,000 and above.

Indirect tax

Alcohol duty

Product Previous rates from 1 February 2025 (per litre of pure alcohol in the product) Duty rate from 1 February 2026 until 1 February 2027 (per litre of alcohol in the product)
All alcoholic products: less than 3.5% alcohol by volume (ABV) £9.61 £9.96
Still cider and perry: at least 3.5% — less than 8.5% ABV £10.02 £10.39
Sparkling cider and perry: at least 3.5% — not exceeding 5.5% ABV £10.02 £10.39
Beer: at least 3.5% — less than 8.5% ABV £21.78 £22.58
Spirits, wine, and other fermented products: at least 3.5% — less than 8.5% ABV £25.67 £26.61
Sparkling cider and perry: exceeding 5.5% ABV — less than 8.5% ABV £25.67 £26.61
All alcoholic products: at least 8.5% but not exceeding 22% ABV £29.54 £30.62
All alcoholic products: exceeding 22% ABV £32.79 £33.99

Reduced rates for qualifying draught products

Product Previous rates from 1 February 2025 (per litre of pure alcohol in the product) Duty rate from February 1 2026 until February 1 2027 (per litre of alcohol in the product)
All alcoholic products: less than 3.5% ABV £8.28 £8.58
Still cider and perry: at least 3.5% — less than 8.5% ABV £8.63 £8.95
Sparkling cider and perry: at least 3.5% — not exceeding 5.5% ABV £8.63 £8.95
Beer, spirits, wine, and other fermented products: at least 3.5% (but less than 8.5% ABV) £18.76 £19.45
Sparkling cider and perry: exceeding 5.5% — less than 8.5% ABV £18.76 £19.45

Tobacco products

Cigarettes

Duty rate plus ad valorem element Minimum Excise Tax
From 30 October 2024 An amount equal to 16.5% of the retail price plus £334.58 per 1,000 cigarettes £446.67 per 1,000 cigarettes
From 26 November 2025 An amount equal to 16.5% of the retail price plus £353.50 per 1,000 cigarettes £471.93 per 1,000 cigarettes
From 1 October 2026 An amount equal to 16.5% of the retail price plus £394.09 per 1,000 cigarettes £518.75 per 1,000 cigarettes

Cigars

Duty rate plus ad valorem element Minimum Excise Tax
From 30 October 2024 £417.33 per kilogram Not applicable
From 26 November 2025 £440.93 per kilogram Not applicable
From 1 October 2026 £508.12 per kilogram Not applicable

Hand-rolling tobacco

Duty rate plus ad valorem element Minimum Excise Tax
From 30 October 2024 £476.83 per kilogram Not applicable
From 26 November 2025 £503.80 per kilogram Not applicable
From 1 October 2026 £574.30 per kilogram Not applicable

Other smoking tobacco and chewing tobacco

Duty rate plus ad valorem element Minimum Excise Tax
From 30 October 2024 £183.49 per kilogram Not applicable
From 26 November 2025 £193.87 per kilogram Not applicable
From 1 October 2026 £248.07 per kilogram Not applicable

Tobacco for heating

Duty rate plus ad valorem element Minimum Excise Tax
From 30 October 2024 £343.91 per kilogram Not applicable
From 26 November 2025 £363.36 per kilogram Not applicable
From 1 October 2026 £426.47 per kilogram Not applicable

Vaping Products Duty

Duty rate
From 1 October 2026 £2.20 per 10ml of Vaping liquid

Gambling duties

Tax year 2025 to 2026 Tax year 2026 to 2027
Percentage of bingo promotion profits 10% N/A
Percentage of ‘net stake receipts’ for fixed odds bets and totalisator bets on horse or dog races 15% 15%
Percentage of ‘net stake receipts’ for financial spread bets 3% 3%
Percentage of ‘net stake receipts’ for all other spread bets 10% 10%
Percentage of net pool betting receipts 15% 15%
Percentage of the price paid or payable on taking a ticket or chance in a lottery 12% 12%
Percentage of remote gaming profits 21% 40%
Percentage of the net takings from dutiable machine games with a maximum cost to play not more than 20 pence and a maximum cash prize not more than £10 (Type 1 machines) 5% 5%
Percentage of net takings from machines which are not Type 1 machines but where the cost to play cannot exceed £5 20% 20%
Percentage of net takings from dutiable machine games where the maximum cost to play can exceed £5 25% 25%

Gaming Duty

Gross gaming yield

Tax rate Figures for accounting periods beginning on or after 1 April 2025 Figures for accounting periods beginning on or after 1 April 2026
15% £2,686,000 £2,686,000
20% £1,852,000 £1,852,000
30% £3,243,000 £3,243,000
40% £6,845,000 £6,845,000
50% Remainder Remainder

Insurance Premium Tax

Tax year 2025 to 2026 Tax year 2026 to 2027
Standard rate 12% 12%
Higher rate 20% 20%

Soft Drinks Industry Levy

To 31 March 2026 From 1 April 2026
Standard rate £1.94 per 10 litres £2.08 per 10 litres
Higher rate £2.59 per 10 litres £2.78 per 10 litres

Main rates of Climate Change Levy

Taxable commodity Rate from 1 April 2026 Rate from 1 April 2027
Electricity (£ per kilowatt hour) 0.00801 0.00827
Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility (£ per kilowatt hour) 0.00801 0.00827
Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state (£ per kilogram) 0.02175 0.02175
Any other taxable commodity (£ per kilogram) 0.06264 0.06468

Reduced rates of Climate Change Levy (percentage of main rates payable by holders of a climate change agreement)

Taxable commodity Rate from 1 April 2026 Rate from 1 April 2027
Electricity (percentage of main rate) 8% 8%
Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility (percentage of main rate) 11% 11%
Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state (percentage of main rate) 23% 23%
Any other taxable commodity (percentage of main rate) 11% 11%

Carbon Price Support rates of Climate Change Levy and Fuel Duty

Rate from 1 April 2021 to 31 March 2028
Carbon price equivalent (£ per tonne of carbon dioxide) £18

Supplies of commodity used in electricity generation

Rate from 1 April 2021 to 31 March 2028
Natural gas (£ per kilowatt hour) 0.00331
Liquefied petroleum gas (£ per kilogram) 0.05280
Coal and other taxable solid fossil fuels (£ per gross gigajoule) 1.54790
Gas oil, rebated bioblend and kerosene (£ per litre) 0.04916
Fuel oil other heavy oil and rebated light oil (£ per litre) 0.05711

Aggregates Levy

Taxable commodity Rate from 1 April 2025 Rate from 1 April 2026
Commercially exploited taxable aggregate £2.08 per tonne £2.16 per tonne

Aggregates Levy is due to be devolved to the Scottish Parliament on 1 April 2026.

Landfill Tax

Material sent to landfill Rate from 1 April 2025 Rate from 1 April 2026
Coverage England and Northern Ireland England and Northern Ireland
Standard rated (per tonne) £126.15 £130.75
Lower rated (per tonne) £4.05 £8.65

Landfill Tax was devolved to the Scottish Parliament in April 2015 and to the Welsh Parliament (Senedd Cymru) in April 2018.

Plastic Packaging Tax

Plastic packaging with less than 30% recycled plastic content.

From 1 April 2025 From 1 April 2026
£223.69 per tonne £228.82 per tonne

Air Passenger Duty rates for 2025 to 2026

Air Passenger Duty (APD) applies to flights aboard aircraft 5.7 tonnes and above. 

Rates for direct long-haul flights from Northern Ireland are devolved and set at £0. Direct long-haul journeys are those where the first leg of the journey is to a destination outside Band A. 

Bands (approximate distance in miles from the UK) Reduced rate (lowest class of travel) from 1 April 2025 Standard rate (other than the lowest class of travel) from 1 April 2025 Higher rate from 1 April 2025
Domestic (flights within the UK) £7 £14 £84
Band A (0 to 2,000 miles) £13 £28 £84
Band B (2,001 to 5,500 miles £90 £216 £647
Band C (over 5,500 miles) £94 £224 £673

Where a class of travel provides a seat pitch in excess of 1.016 metres (40 inches), the standard rate is the minimum rate that applies. 

The higher rate applies to flights on aircraft of 20 tonnes and above, with fewer than 19 seats.

Air Passenger Duty rates for 2026 to 2027

Air Passenger Duty (APD) applies to flights aboard aircraft 5.7 tonnes and above. 

Rates for direct long-haul flights from Northern Ireland are devolved and set at £0. Direct long-haul journeys are those where the first leg of the journey is to a destination outside Band A. 

Bands (approximate distance in miles from the UK) Reduced rate (lowest class of travel) from 1 April 2026 Standard rate (other than the lowest class of travel) from 1 April 2026 Higher rate from 1 April 2026
Domestic (flights within the UK) £8 £16 £142
Band A (0 to 2,000 miles) £15 £32 £142
Band B (2,001 to 5,500 miles £102 £244 £1097
Band C (over 5,500 miles) £106 £253 £1141

Where a class of travel provides a seat pitch in excess of 1.016 metres (40 inches), the standard rate is the minimum rate that applies. 

The higher rate applies to flights on aircraft of 20 tonnes and above, with fewer than 19 seats.

Air Passenger Duty rates for 2027 to 2028

Air Passenger Duty (APD) applies to flights aboard aircraft 5.7 tonnes and above. 

Rates for direct long-haul flights from Northern Ireland are devolved and set at £0. Direct long-haul journeys are those where the first leg of the journey is to a destination outside Band A. 

Bands (approximate distance in miles from the UK) Reduced rate (lowest class of travel) from 1 April 2027 Standard rate (other than the lowest class of travel) from 1 April 2027 Higher rate from 1 April 2027
Domestic (flights within the UK) £8.26 £16.52 £146.63
Band A (0 to 2,000 miles) £15.49 £33.04 £146.63
Band B (2,001 to 5,500 miles £105.33 £251.95 £1132.76
Band C (over 5,500 miles) £109.46 £261.25 £1178.20

Where a class of travel provides a seat pitch in excess of 1.016 metres (40 inches), the standard rate is the minimum rate that applies. 

The higher rate applies to flights on aircraft of 20 tonnes and above, with fewer than 19 seats. However, as announced at Budget 2025, following a consultation, the government will extend the scope of the higher rate to all business jets over 5.7 tonnes. The government will publish draft legislation at Legislation Day 2026, and legislate for these changes at Finance Bill 2026-27.

Fuel Duty — pound per litre unless stated

Light oils

Rates from 23 March 2022 until the end of 22 March 2026 Continued cut rates (to 31 August 2026) Rates from 1 September 2026 Rates from 1 December 2026 Rates from 1 March 2027
Unleaded petrol 0.5295 0.5295 0.5395 0.5595 0.5795
Light oil (other than unleaded petrol or aviation gasoline) 0.6267 0.6267 0.6367 0.6567 0.6767
Aviation gasoline (Avgas) 0.3629 0.3629 0.3667 0.3743 0.3820
Light oil delivered to an approved person for use as furnace fuel 0.0978 0.0978 0.0996 0.1033 0.1070

Heavy oils

Rates from 23 March 2022 until the end of 22 March 2026 Continued cut rates (to 31 August 2026) Rates from 1 September 2026 Rates from 1 December 2026 Rates from 1 March 2027
Heavy oil (diesel) 0.5295 0.5295 0.5395 0.5595 0.5795
Marked gas oil 0.1018 0.1018 0.1037 0.1076 0.1114
Fuel oil 0.0978 0.0978 0.0996 0.1033 0.1070
Heavy oil other than fuel oil, gas oil or kerosene for use as fuel 0.0978 0.0978 0.0996 0.1033 0.1070
Kerosene for use as fuel for an excepted machine (other than for heating) 0.1018 0.1018 0.1037 0.1076 0.1114

Biofuels

Rates from 23 March 2022 until the end of 22 March 2026 Continued cut rates (to 31 August 2026) Rates from 1 September 2026 Rates from 1 December 2026 Rates from 1 March 2027
Bio-ethanol 0.5295 0.5295 0.5395 0.5595 0.5795
Bio-diesel 0.5295 0.5295 0.5395 0.5595 0.5795
Bio-diesel for use in an excepted machine 0.1018 0.1018 0.1037 0.1076 0.1114
Bio-diesel blended with gas oil for use in an excepted machine 0.1018 0.1018 0.1037 0.1076 0.1114

Road fuel gases

Rates from 23 March 2022 until the end of 22 March 2026 Continued cut rates (to 31 August 2026) Rates from 1 September 2026 Rates from 1 December 2026 Rates from 1 March 2027
Natural road fuel gas including biogas (£ per kilogram 0.2257 £/kg 0.2257 £/kg 0.2300 £/kg 0.2385 £/kg 0.2470 £/kg
Other road fuel gases including liquefied petroleum gas (£ per kilogram) 0.2888 £/kg 0.2888 £/kg 0.2943 £/kg 0.3052 £/kg 0.3161 £/kg

Other fuels

Rates from 23 March 2022 until the end of 22 March 2026 Continued cut rates (to 31 August 2026) Rates from 1 September 2026 Rates from 1 December 2026 Rates from 1 March 2027
Aqua-methanol set aside for road use 0.0722 0.0722 0.0736 0.0763 0.0790

Vehicle Excise Duty (VED) bands and rates for cars first registered on or after 1 April 2017

The changes to VED rates to take effect from 1 April 2026 are set out in the following tables.

Tax year 2024 to 2025

CO2 emissions (g/km) Standard rate First year rate
0 0 0
1 to 50 190 10
51 to 75 190 30
76 to 90 190 135
91 to 100 190 175
101 to 110 190 195
111 to 130 190 220
131 to 150 190 270
151 to 170 190 680
171 to 190 190 1,095
191 to 225 190 1,650
226 to 255 190 2,340
Over 255 190 2,745

Tax year 2025 to 2026

CO2 emissions (g/km) Standard rate First year rate
0 195 10
1 to 50 195 110
51 to 75 195 130
76 to 90 195 270
91 to 100 195 350
101 to 110 195 390
111 to 130 195 440
131 to 150 195 540
151 to 170 195 1,360
171 to 190 195 2,190
191 to 225 195 3,300
226 to 255 195 4,680
Over 255 195 5,490

Tax year 2026 to 2027

CO2 emissions (g/km) Standard rate First year rate
0 200 10
1 to 50 200 115
51 to 75 200 135
76 to 90 200 280
91 to 100 200 365
101 to 110 200 405
111 to 130 200 455
131 to 150 200 560
151 to 170 200 1,410
171 to 190 200 2,270
191 to 225 200 3,420
226 to 255 200 4,850
Over 255 200 5,690

Budget 2018 announced that new diesel vehicles registered after 1 April 2018 that do not meet the real driving emission step 2 (RDE2) standard will be charged a supplement on their first year rate to the effect of moving up by one VED band.

Petrol and diesel cars with a list price of over £40,000 and zero emission cars with a list price over £50,000 in the registration year will pay an additional rate of £440 per annum on top of the standard rate, in the second to sixth years after the car’s first registration (known as the Expensive Car Supplement (ECS)).

Vehicle Excise Duty bands and rates for cars first registered on or after 1 March 2001

Tax year 2024 to 2025

Vehicle Excise Duty band CO2 emissions (g/km) Standard rate
A Up to 100 0
B 101 to 110 20
C 111 to 120 35
D 121 to 130 160
E 131 to 140 190
F 141 to 150 210
G 151 to 165 255
H 166 to 175 305
I 176 to 185 335
J 186 to 200 385
K 201 to 225 415
L 226 to 255 710
M Over 255 735

Band K includes cars emitting over 225g/km registered before 23 March 2006.

Tax year 2025 to 2026

Vehicle Excise Duty band CO2 emissions (g/km) Standard rate
A Up to 100 20
B 101 to 110 20
C 111 to 120 35
D 121 to 130 165
E 131 to 140 195
F 141 to 150 215
G 151 to 165 265
H 166 to 175 315
I 176 to 185 345
J 186 to 200 395
K 201 to 225 430
L 226 to 255 735
M Over 255 760

Band K includes cars emitting over 225g/km registered before 23 March 2006.

Tax year 2026 to 2027

Vehicle Excise Duty band CO2 emissions (g/km) Standard rate
A Up to 100 20
B 101 to 110 20
C 111 to 120 35
D 121 to 130 170
E 131 to 140 200
F 141 to 150 225
G 151 to 165 275
H 166 to 175 325
I 176 to 185 360
J 186 to 200 410
K 201 to 225 445
L 226 to 255 760
M Over 255 790

Band K includes cars emitting over 225g/km registered before 23 March 2006.

Vehicle Excise Duty bands and rates for cars and vans registered before 1 March 2001

Engine size Tax year 2024 to 2025 Tax year 2025 to 2026 Tax year 2026 to 2027
1549cc and below 210 220 230
Above 1549cc 345 360 375

Vehicle Excise Duty bands and rates for vans registered on or after 1 March 2001

Vehicle registration date Tax year 2024 to 2025 Tax year 2025 to 2026 Tax year 2026 to 2027
Early Euro 4 and Euro 5 compliant vans 140 140 140
All other vans 335 345 360

Vehicle Excise Duty bands and rates for motorcycles

Engine Size Tax year 2024 to 2025 Tax year 2025 to 2026 Tax year 2026 to 2027
Not over 150cc 25 26 27
151cc to 400cc 55 57 59
401cc to 600cc 84 87 90
Over 600cc 117 121 125

Vehicle Excise Duty bands and rates for motor tricycles

Engine Size Tax year 2024 to 2025 Tax year 2025 to 2026 Tax year 2026 to 2027
Not over 150cc 25 26 27
All other tricycles 117 121 125

Vehicle Excise Duty bands and rates for trade licences

Vehicle type Tax year 2024 to 2025 Tax year 2025 to 2026 Tax year 2026 to 2027
Available for all vehicles 165 171 177
Available only for bicycle sand tricycles (weighing no more than 450kg without a sidecar) 117 121 125

Vehicle Excise Duty bands and rates for articulated vehicles and rigid vehicles without trailers

Vehicle Excise Duty band (letter and rate number) 12 months 6 months
A0 £177 £97.35
B0 £215 £118.25
A1 £86 £43
A2 £90 £45
A3 £108 £54
A4 £157 £78.50
A5 £163 £81.50
B1 £102 £51
B2 £113 £56.50
B3 £135 £67.50
C1 £226 £113
C2 £285 £142.50
C3 £311 £155.50
D1 £322 £161
E1 £601 £300.50
E2 £654 £327
F £741 £370.50
G £913 £456.50

Vehicle Excise Duty (VED) amounts payable for rigid vehicles with trailers (vehicles with road friendly suspension)

Heavy goods vehicle (HGV) axles Trailer weight category Total weight of HGV and trailer, not over VED band (letter) and rate (number) VED rates — 12 months VED rates — 6 months
2 4,001kg to 12,000 kg 27,000kg B(T)1 £247 £123.50
2 Over 12,000kg 33,000kg B(T)3 £317 £158.50
2 Over 12,000kg 36,000kg B(T)6 £431 £215.50
2 Over 12,000kg 38,000kg B(T)4 £343 £171.50
2 Over 12,000kg 40,000kg B(T)7 £477 £238.50
2 4,001kg to 12,000kg 30,000kg D(T)1 £392 £196
2 Over 12,000kg 38,000kg D(T)4 £462 £231
2 Over 12,000kg 40,000kg D(T)5 £477 £238.50
3 4,001kg to 12,000kg 33,000kg B(T)1 £247 £123.50
3 Over 12,000kg 38,000kg B(T)3 £317 £158.50
3 Over 12,000kg 40,000kg B(T)5 £421 £210.50
3 Over 12,000kg 44,000kg B(T)3 £317 £158.50
3 4,001kg to 12,000kg 35,000kg C(T)1 £328 £164
3 Over 12,000kg 38,000kg C(T)2 £397 £198.50
3 Over 12,000kg 40,000kg C(T)3 £421 £210.50
3 Over 12,000kg 44,000kg C(T)2 £397 £198.50
3 4,001kg to 10,000kg 33,000kg D(T)1 £392 £196
3 4,001kg to 10,000kg 36,000kg D(T)3 £431 £215.50
3 10,001kg to 12,000kg 38,000kg D(T)1 £392 £196
3 Over 12,000kg 44,000kg D(T)4 £462 £231
4 4,001kg to 12,000kg 35,000kg B(T)1 £247 £123.50
4 Over 12,000kg 44,000kg B(T)3 £317 £158.50
4 4,001kg to 12,000kg 37,000kg C(T)1 £328 £164
4 Over 12,000kg 44,000kg C(T)2 £397 £198.50
4 4,001kg to 12,000kg 39,000kg D(T)1 £392 £196
4 Over 12,000kg 44,000kg D(T)4 £462 £231
4 4,001kg to 12,000kg 44,000kg E(T)1 £575 £287.50
4 Over 12,000kg 44,000kg E(T)2 £645 £322.50

Vehicle Excise Duty (VED) amounts payable for rigid vehicles with trailers (vehicles without road friendly suspension)

Heavy goods vehicle (HGV) axles Trailer weight category Total weight of HGV and trailer, not over VED band (letter) and rate (number) VED rates — 12 months VED rates — 6 months
2 4,001kg to 12,000 kg 27,000kg B(T)1 £247 £123.50
2 Over 12,000kg 31,000kg B(T)3 £317 £158.50
2 Over 12,000kg 33,000kg B(T)6 £431 £215.50
2 Over 12,000kg 36,000kg B(T)10 £654 £327
2 Over 12,000kg 38,000kg B(T)7 £477 £238.50
2 Over 12,000kg 40,000kg B(T)9 £649 £324.50
2 4,001kg to 12,000 kg 30,000kg D(T)1 £392 £196
2 Over 12,000kg 33,000kg D(T)4 £462 £231
2 Over 12,000kg 36,000kg D(T)8 £654 £327
2 Over 12,000kg 38,000kg D(T)5 £477 £238.50
2 Over 12,000kg 40,000kg D(T)7 £649 £324.50
3 4,001kg to 10,000kg 29,000kg B(T)1 £247 £123.50
3 4,001kg to 10,000kg 31,000kg B(T)2 £311 £155.50
3 10,001kg to 12,000kg 33,000kg B(T)1 £247 £123.50
3 Over 12,000kg 36,000kg B(T)3 £317 £158.50
3 Over 12,000kg 38,000kg B(T)5 £421 £210.50
3 Over 12,000kg 40,000kg B(T)8 £583 £291.50
3 4,001kg to 10,000kg 31,000kg C(T)1 £328 £164
3 4,001kg to 10,000kg 33,000kg C(T)4 £431 £215.50
3 10,001kg to 12,000kg 35,000kg C(T)1 £328 £164
3 Over 12,000kg 36,000kg C(T)2 £397 £198.50
3 Over 12,000kg 38,000kg C(T)3 £421 £210.50
3 Over 12,000kg 40,000kg C(T)5 £583 £291.50
3 4,001kg to 10,000kg 31,000kg D(T)1 £392 £196
3 4,001kg to 10,000kg 33,000kg D(T)3 £431 £215.50
3 4,001kg to 10,000kg 35,000kg D(T)8 £654 £327
3 10,001kg to 12,000kg 36,000kg D(T)1 £392 £196
3 10,001kg to 12,000kg 37,000kg D(T)2 £421 £210.50
3 Over 12,000kg 38,000kg D(T)4 £462 £231
3 Over 12,000kg 40,000kg D(T)6 £583 £291.50
4 4,001kg to 12,000kg 35,000kg B(T)1 £247 £123.50
4 Over 12,000kg 40,000kg B(T)3 £317 £158.50
4 4,001kg to 12,000kg 37,000kg C(T)1 £328 £164
4 Over 12,000kg 40,000kg C(T)2 £397 £198.50
4 4,001kg to 10,000kg 36,000kg D(T)1 £392 £196
4 4,001kg to 10,000kg 37,000kg D(T)5 £477 £238.50
4 10,001kg to 12,000kg 39,000kg D(T)1 £392 £196
4 Over 12,000kg 40,000kg D(T)4 £462 £231
4 4,001kg to 10,000kg 38,000kg E(T)1 £575 £287.50
4 4,001kg to 10,000kg 40,000kg E(T)3 £649 £324.50
4 10,001kg to 12,000kg 40,000kg E(T)1 £575 £287.50

Rigid goods vehicles

The band and rate payable can be calculated by using the following look-up tables.

In the tables, the letter indicates the Vehicle Excise Duty band the vehicle is in, and the number indicates the rate that is payable as part of that band (for example, B2 would refer to Vehicle Excise Duty band B, and rate 2 as determined by the weight and axle configuration of the vehicle).

For vehicles with trailers, the rate paid depends on whether the vehicle has road friendly suspension.

There are separate tables for vehicles with and without road friendly suspension.

Rigid goods vehicle without trailer

Revenue weight of vehicle (kg) 2 axles 3 axles 4 or more axles
3,500kg to 7,500kg A0 A0 A0
Over 7,500kg to 11,999kg B0 B0 B0
Over 11,999kg to 14,000kg B1 B1 B1
Over 14,000kg to 15,000kg B2 B1 B1
Over 15,000kg to 19,000kg D1 B1 B1
Over 19,000kg to 21,000kg D1 B3 B1
Over 21,000kg to 23,000kg D1 C1 B1
Over 23,000kg to 25,000kg D1 D1 C1
Over 25,000kg to 27,000kg D1 D1 D1
Over 27,000kg to 44,000kg D1 D1 E1

Rigid goods vehicle with trailer

Revenue weight of vehicle (not trailer) (kg) 2-axled rigid 3-axled rigid 4-axled rigid
11,999kg to 15,000kg B(T) B(T) B(T)
Over 15,000kg to 21,000kg D(T) B(T) B(T)
Over 21,000kg to 23,000kg E(T) C(T) B(T)
Over 23,000kg to 25,000kg E(T) D(T) C(T)
Over 25,000kg to 27,000kg E(T) D(T) D(T)
Over 27,000kg to 44,000kg E(T) E(T) E(T)

Articulated vehicles

Articulated vehicles — tractive unit with 3 or more axles

Revenue weight of vehicle (not trailer) (kg) One or more semi-trailer axles 2 or more semi-trailer axles 3 or more semi-trailer axles
3,500kg to 11,999kg A0 A0 A0
Over 11,999kg to 25,000kg A1 A1 A1
Over 25,000kg to 26,000kg A3 A1 A1
Over 26,000kg to 28,000kg A4 A1 A1
Over 28,000kg to 29,000kg C1 A1 A1
Over 29,000kg to 31,000kg C3 A1 A1
Over 31,000kg to 33,000kg E1 C1 A1
Over 33,000kg to 34,000kg E2 D1 A1
Over 34,000kg to 36,000kg E2 D1 C1
Over 36,000kg to 38,000kg F E1 D1
Over 38,000kg to 44,000kg G G E1

Articulated vehicles — tractive unit with 2 axles

Revenue weight of vehicle (not trailer) (kg) One or more semi-trailer axles 2 or more semi-trailer axles 3 or more semi-trailer axles
3,500kg to 11,999kg A0 A0 A0
Over 11,999kg to 22,000kg A1 A1 A1
Over 22,000kg to 23,000kg A2 A1 A1
Over 23,000kg to 25,000kg A5 A1 A1
Over 25,000kg to 26,000kg C2 A3 A1
Over 26,000kg to 28,000kg C2 A4 A1
Over 28,000kg to 31,000kg D1 D1 A1
Over 31,000kg to 33,000kg E1 E1 C1
Over 33,000kg to 34,000kg E1 E2 C1
Over 34,000kg to 38,000kg F F E1
Over 38,000kg to 44,000kg G G G

Heavy Goods Vehicle (HGV) levy

Weight category Newest, cleanest vehicles (EURO VI or later) Older vehicles (Euro V or earlier)
From 12 tonnes, and up to 31 tonnes £161 £209
Above 31 tonnes and up to 38 tonnes £387 £503
Above 38 tonnes £619 £804

Shorter-term rates are available for foreign vehicles — the daily rate is set at 2% of the annual rate, and the weekly and monthly rates are 5% and 10% of the annual rate respectively.

There are two exceptions to this formula for calculating the daily rates for 2026 to 2027. The daily rates for the heaviest EURO VI and EURO 0-V HGVs (above 38 tonnes) have been increased from the 2025 to 2026 rates, in line with the Retail Price Index (RPI).

VAT

April 2025 to 2026 April 2026 to 2027
Standard rate 20% 20%
Reduced rate 5% 5%
Zero rate 0% 0%
Exempt Not applicable Not applicable

VAT registration and deregistration thresholds

From April 2025 From April 2026
VAT registration thresholds £90,000 £90,000
VAT deregistration thresholds £88,000 £88,000
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