Tax guides

Income Tax in the UK is charged on income above the Personal Allowance. The Personal Allowance is £12,570 for the 2026/27 tax year, and the rates above it are 20% (Basic), 40% (Higher) and 45% (Additional). Scotland sets its own rates.

Capital Gains Tax is charged on the gain from disposing of an asset, not the sale price. For the 2026-27 tax year the annual exempt amount is £3,000 and the main rates are 18% and 24%.

Savings interest can fall within an unused Personal Allowance, the starting rate for savings and the Personal Savings Allowance. These are separate rules, administered by HMRC.

Dividend income has its own allowance and rates. The allowance does not establish a taxpayer’s band, and dividends inside an ISA have separate exemption rules.

The ordinary nil-rate band and residence nil-rate band are distinct. A published maximum residence band is conditional, and the standard rate applies to the taxable estate above the applicable threshold.

VAT registration uses taxable turnover rather than profit. The test for compulsory registration and the lower threshold for requesting cancellation serve different purposes, and cancellation requires HMRC confirmation.

Making Tax Digital for Income Tax applies to qualifying sole traders and landlords by reference to earlier income. The published start dates depend on the tax year being assessed, not just current turnover.

Self Assessment has separate requirements for registration, filing and payment. A July payment deadline applies to payments on account, while late filing has its own penalties.

Annual Investment Allowance permits a deduction for qualifying plant and machinery. The headline amount is separate from asset exclusions, accounting-period adjustments and shared allowances.

The property and trading allowances are separate annual tax exemptions. Gross income, deductible expenses and exclusions determine how each allowance can be used.

Gift Aid lets qualifying charities reclaim tax on donations. Higher-rate taxpayers can claim additional relief separately, with declarations and tax-paid limits applying.

Blind Person’s Allowance adds to the yearly Personal Allowance. Eligibility varies by residence, and unused allowance can be transferred within qualifying couples.