McEwan Wallace have a wealth of experience in advising businesses and individuals on a range of key tax and financial planning issues. Here we consider strategies to help you to minimise your tax bill, maximise your profitability and boost your wealth.
Fiscal statements
Several tax changes were announced in the Autumn Budget 2025.
Personal tax
The freeze on the UK-wide personal allowance and the basic rate band was extended until April 2031. The personal allowance remains £12,570 and the basic rate band threshold £37,700.
There have been no changes to the rates of taxation on non-savings and savings income for 2026/27. The rates of taxation on dividend income in the basic rate band and higher rate bands will be increased by 2% for 2026/27 to 10.75% (basic rate), 35.75% (higher rate). The additional rate of 39.35% will remain the same for 2026/27.
From 6 April 2027 the government is introducing separate rates of tax for property income. From the same date, the rates applicable to savings income will be increased by 2%. This means that the rates for property and savings income from April 2027 will be:
- 22% for basic rate taxpayers
- 42% for higher rate taxpayers
- 47% for additional rate taxpayers
Scottish taxpayers: income tax rates and bands for non-savings and non-dividend income are different from the rest of the UK. For 2026/27, the starter and basic rate bands have increased but the rates remain as they were for 2025/26, with six income tax rates which range between 19% and 48%. Scottish taxpayers are entitled to the same personal allowances as individuals in the rest of the UK and the rates on savings and dividend income are as for the rest of the UK.
National Insurance contributions
The National Insurance contributions (NICs) Primary Threshold (applicable to Class 1 employee primary contributions) and Lower Profits Limit (Class 4) remain at £12,570 for 2026/27. The NICs Upper Earnings Limit and Upper Profits Limit will remain aligned to the higher rate threshold at £50,270. The class 1 secondary employer’s threshold remains at £5,000. These thresholds are frozen up to April 2031.
The rates of Class 1 and Class 4 NICs remain unchanged for 2026/27.
Corporation tax
The main rate of corporation tax for a standalone company remains 25% where profits for an accounting period exceed £250,000. If a company has no associated company in the accounting period and its profits do not exceed £50,000, the small profits rate will be 19%. If a company has no associated company in the accounting period and its profits are between £50,001 and £250,000,marginal relief will apply.
If a company has one or more associated companies in the accounting period then the limits are divided by the number of associated companies plus one. For an accounting period of less than 12 months the lower limit and the upper limit are proportionately reduced. There are a number of complex rules regarding associated companies.
Your financial planning strategy
It is more important than ever to have a robust business and personal financial planning strategy in place, to help ensure that you and your family are financially secure and on course to achieve your long-term goals.
If you would like advice on tax planning strategies, please contact McEwan Wallace.