UK tax rates and thresholds: a yearly reference guide

UK tax rates and thresholds are reviewed and often changed at each Budget, which means figures that were accurate last year may no longer apply. Rather than list specific numbers here that could go stale, this guide explains which rates matter most and why checking annually is worth the five minutes it takes.

What typically changes each year

Income Tax bands, the personal allowance, National Insurance thresholds, dividend and savings allowances, Capital Gains Tax allowances, and Corporation Tax rates are all reviewed regularly. Some move with inflation, others are frozen for several years at a time, and some change significantly at a single Budget.

Why this matters for planning

Decisions like how much salary versus dividend to draw, when to realise a capital gain, or how much to pay into a pension are all sensitive to where the current thresholds sit. Planning against last year's figures can lead to paying more tax than necessary, or an unexpected bill.

Our advice

Rather than relying on a number you half-remember from a headline, ask us for your current position at the start of the tax year and again before any major financial decision. We keep track of the changes so you don't have to.