The 2025/26 UK tax year has begun, and while many allowances remain the same, a few important updates could affect your personal or business finances. At Abbeygate Accountancy, we’ve summarised the key points to help you stay ahead:
Income Tax & Allowances
Personal Allowance: Still £12,570
Dividend Allowance: Cut to £500
Tax Bands: No major changes for most UK regions—though Scotland now has a new 48% ‘Top Rate’ for high earners
National Insurance
Employees: Reduced to 8%
Self-Employed (Class 4): Down to 6%
Capital Gains Tax
Annual Exemption: Down to £3,000
Main Residential Rate: Cut from 28% to 24%
Business Asset Disposal Relief: Now taxed at 14%
Business Updates
Corporation Tax: Main rate remains at 25%
Annual Investment Allowance: Still £1 million
VAT: Registration threshold rises to £90,000
Other Notables
Electric company cars: Benefit-in-kind remains low at 3%
ISA Allowance: Still £20,000
Pension Annual Allowance: £60,000
What This Means for You
With changes to allowances and tax bands, it’s more important than ever to stay informed and plan proactively. Whether you’re a business owner, landlord, or employee, the right advice can save you time and money.
Need help navigating the new tax year?
Our team at Abbeygate Accountancy is ready to support you. Get in touch today and learn how we can help your business grow!
