Tax explainers

• The 60% tax trap

  Why income between £100,000 and £125,140 can be taxed at an effective 60%, and what can lower the income that counts.

• The High Income Child Benefit Charge

  How the charge works above £60,000, how adjusted net income decides it, and your options.

• Marriage Allowance and earlier years

  Who can benefit from transferring part of the Personal Allowance, and how far back a claim can go.

• The trading allowance

  What the £1,000 allowance is, when you can use it and how to compare it with your actual expenses.

• Making Tax Digital for Income Tax

  Who has to use it and from when, what it asks you to do, and what SavingTax can and cannot help with.

• The Personal Savings Allowance

  How much savings interest you can earn tax-free, and how the starting rate for savings fits in.

• Dividend tax

  The £500 allowance, the 2026-27 rates, how your other income decides the rate and when to tell HMRC.

• Capital Gains Tax allowance and rates

  The £3,000 annual exempt amount and the 18% and 24% rates, with two worked examples.

• Gift Aid and higher rate relief

  How Gift Aid works, the tax you must have paid and what higher rate taxpayers can claim.

• The Rent a Room Scheme

  The £7,500 tax-free limit for letting a furnished room in your home, and what happens above it.

Each explainer shows the tax year it covers and when its figures were last checked against GOV.UK. See how we check our figures.

These pages are general information, not financial, tax or legal advice. Your own position depends on your circumstances. For advice, speak to a qualified professional.