Budget Summary 2027/28

Tax Tables (E-H)

National Insurance Contributions 2027/28 (Table E)

Class 1 (Employees)	Employee	Employer
Main NIC rate	8%	15%
No NIC on first	£242pw	£96pw
Main rate charged up to*	£967pw	no limit
2% rate on earnings above	£967pw	N/A
Employment allowance per qualifying business	N/A	£10,500

*Nil rate of employer NIC on earnings up to £967pw for employees aged under 21, apprentices aged under 25 and ex-armed forces personnel in their first twelve months of civilian employment.

Employer contributions (at 15%) are also due on most taxable benefits (Class 1A) and on tax paid on an employee’s behalf under a PAYE settlement agreement (Class 1B).

Class 2 (Self employed)

Flat rate per week if profits below £7,355 (voluntary)

£3.80

Class 3 (Voluntary)

Flat rate per week

£19.05

Class 4 (Self employed)

On profits £12,570 – £50,270	6%
On profits over £50,270	2%

Employees with earnings above £133pw and the self-employed with annual profits over £7,355 (or who pay voluntary Class 2 contributions) can access entitlement to contributory benefits.

Capital Gains Tax (Table F)

Rates from	2027/28	2026/27
Annual exempt amount
Individuals and deceased’s estates	£3,000	£3,000
Most trusts	1,500	1,500
Tax rate
Individual (to basic rate limit)	18%	18%
Individual (above basic rate limit)	24%	24%
Business Asset Disposal Relief (BADR)	18%	18%
Founders Relief (FR)	10%	N/A
Lifetime limit on qualifying gains
BADR	£500,000	£1m
FR	10m	N/A

Corporation Tax (Table G)

	1.4.2027	1.4.2026
Main rate (profits above £250,000)	25%	25%
Small profits rate (profits up to £50,000)	19%	19%
Marginal relief band (MRB)	£50k - £250k	£50k - £250k
Marginal relief fraction	3/200	3/200
Effective marginal rate in MRB	26.5%	26.5%

National Minimum Wage (Table H)

From	1.4.2027	1.4.2026
Rate per hour
Aged 21 and over (National Living Wage)	£13.21	£12.71
Aged 18 – 20	11.27	10.85
Aged 16 – 17	8.31	8.00
Apprentices	8.31	8.00