The bars show the overall marginal tax rates on income of different types. Tax rates on employment and self-employment are inclusive of all National Insurance contributions (NICs). For employees, this includes employer NICs. Whether the cost of employer NICs is borne by employers or passed on to employees, they act to disincentivise employment in a way that they do not disincentivise activities that produce other forms of income. The chart shows the rates of capital gains tax applicable to most assets (there is a different rate for capital gains from property). ‘BAD relief’ stands for business asset disposal relief and is a preferential rate of capital gains tax for owner-managed businesses. Tax rates on dividends and capital gains are inclusive of corporation tax. As such, these rates should be thought of as the overall rates that would be faced by someone running a company and taking income in dividends or capital gains (on which corporation tax would first be due). Excludes trading allowance and employment allowance where applicable.