| Tax/Allowance | 2022/23 | 2023/24 | 2024/25 |
|---|---|---|---|
| Basic rate income tax band (20%) | £0 - £37,700 | £0 - £37,700 | £0 - £37,700 |
| Higher rate income tax band (40%) | £37,701 - £150,000 | £37,701 - £125,140 | £37,701 - £125,140 |
| Additional rate income tax band (45%) | £150,000+ | £125,140+ | £125,140+ |
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Investments & Taxation
UK tax & allowances
Last Updated: 6 Apr 24 7 min read
Contents
7. Special rates of income tax for trustees
8. Marriage Allowance & Married Couples Allowance
10. Working and Child Tax Credits, Child Benefit and Guardians Allowance
11. Capital, assets and property
12. Business
13. New flat rate State Pension
14. Read more
Income Tax (non-Scottish)
Further information
Scottish income tax
| Tax/Allowance | 2022/23 | 2023/24 | 2024/25 |
|---|---|---|---|
| Starter rate income tax (19%) | £0 - £2,162 | £0 - £2,162 | £0 - £2,306 |
| Basic rate income tax (20%) | £2,163 - £13,118 | £2,163 - £13,118 | £2,307 - £13,991 |
| Intermediate rate income tax (21%) | £13,119 - £31,092 | £13,119 - £31,092 | £13,119 - £31,092 |
| Higher rate income tax (40%) | n/a | n/a | n/a |
| Higher rate income tax (42%) | £31,093 - £150,000 | £31,093 - £125,140 | £31,093 - £62,430 |
| Advanced rate income tax (45%) Rate introduced for 2024/25 |
n/a | n/a | £62,430 - £125,140 |
| Additional rate income tax band (45%) | n/a | n/a | |
| Top rate income tax band (48%) Rate increased by 1% for 2024/25 |
£150,000+ | £125,140+ | £125,140+ |
Further information
Tax on savings
| Tax/Allowance | 2022/23 | 2023/24 | 2024/25 |
|---|---|---|---|
| Starting rate of tax on savings income | 0% | 0% | 0% |
| Basic rate of tax on savings income | 20% | 20% | 20% |
| Higher rate of tax on savings income | 40% | 40% | 40% |
| Additional rate of tax on savings income | 45% | 45% | 45% |
Further information
Personal Savings Allowance
| Tax/Allowance | 2022/23 | 2023/24 | 2024/25 |
|---|---|---|---|
| Basic rate tax payers | £1,000 | £1,000 | £1,000 |
| Higher rate tax payers | £500 | £500 | £500 |
| Additional rate tax payers | £0 | £0 | £0 |
Further information
Personal Allowance
| Tax/Allowance | 2022/23 | 2023/24 | 2024/25 |
|---|---|---|---|
| Personal allowance | £12,570 | £12,570 | £12,570 |
| Blind persons allowance | £2,600 | £2,870 | £3,070 |
Further information
Dividend tax allowance
| Tax/Allowance | 2022/23 | 2023/24 | 2024/25 |
|---|---|---|---|
| Dividend allowance | £2,000 | £1,000 | £500 |
| Dividend ordinary rate - for dividends otherwise taxable at basic rate. | 8.75% | 8.75% | 8.75% |
| Dividend upper rate - for dividends otherwise taxable at higher rate. | 33.75% | 33.75% | 33.75% |
| Dividend additional rate - for dividends otherwise taxable at additional rate. | 39.35% | 39.35% | 39.35% |
Further information
Special rates of income tax for trustees
| Tax/Allowance | 2022/23 | 2023/24 | 2024/25 (£500 de minimus applies for trusts) |
|---|---|---|---|
| Discretionary trust | |||
| UK investment bonds | Gains above 1,000 taxed at 25% | Gains above 1,000 taxed at 25% | 25% |
| Offshore investment bonds | Gains above £1,000 taxed at 45% | Gains above £1,000 taxed at 45% | 45% |
| Unit trusts & OEICs | Dividends taxed at 8.75% and interest taxed at 20%. For income above £1,000, dividends are taxed at 39.35% and interest 45% | Dividends taxed at 8.75% and interest taxed at 20%. For income above £1,000, dividends are taxed at 39.35% and interest 45% | Dividends taxed at 39.35% Interest taxed at 45% |
| Interest in Possession Trusts | |||
| UK investment bonds | In tax years post death, UK trustees are taxed at 25% | In tax years post death, UK trustees are taxed at 25% | In tax years post death, UK trustees are taxed at 25% |
| Offshore investment bonds | In tax years post death, UK trustees are taxed at 45% | In tax years post death, UK trustees are taxed at 45% | In tax years post death, UK trustees are taxed at 45% |
| Unit trusts and OEICs | Trustees are taxed at 20% on interest and 8.75% on dividends | Trustees are taxed at 20% on interest and 8.75% on dividends | Trustees are taxed at 20% on interest and 8.75% on dividends |
Further information
Marriage Allowance & Married Couples Allowance
| Tax/Allowance | 2021/22 | 2022/23 | 2023/24 | 2024/25 |
|---|---|---|---|---|
| Marriage Allowance | £1,250 | £1,260 | £1,260 | £1,260 |
| Marriage Couple's Allowance for those born before 6 April 1935 | £9,125 (max) £3,530 (min) |
£9,415 (max) £3,640 (min) |
£10,375 (max) £4,010 (min) |
£11,080 (max) £4,280 (min) |
| Income limit for Married Couple's Allowance | £30,400 | £31,400 | £34,600 | £37,000 |
Further information
National Insurance
| Tax/Allowance | 2023/23 | 2023/24 | 2024/25 |
|---|---|---|---|
| Class 1 NICs: Employee and employer thresholds and allowance (£ per week - except where stated) |
|||
| Lower Earnings Limit | £123 | £123 | £123 |
| Primary Threshold | £229* | £242 | £242 |
| Secondary Threshold | £175 | £175 | £175 |
| Upper Earnings Limit | £967 | £967 | £967 |
| Upper Secondary Threshold for under 21s | £967 | £967 | £967 |
| Apprentice Upper Secondary Threshold for under 25s | £967 | £967 | £967 |
| Employment Allowance (per employer) | £5,000 per year | £5,000 per year | £5,000 per year |
| *Employee National Insurance is using the “Effective Annual threshold” of £11,908 which refers to the Primary Threshold level if the weekly level was applied for a full year. This is based on the Primary Threshold being £9,880 from 6 April 2022 until 5 July 2022, and then £12,570 from 6 July 2022 until 5 April 2023 | |||
| Class 1 NICs: Employee NIC rates (£ per week - except where stated) |
|||
| Below Weekly Lower Earnings Limit | 0% | 0% | 0% |
| Weekly Lower Earnings Limit to Primary Threshold | 0% | 0% | 0% |
| Primary Threshold to Upper Earnings Limit | 12.73%* | 11.5%* | 8% |
| Above Upper Earnings Limit | 2.73% | 2% | 2% |
| *Employee National Insurance is using the “Effective Annual Rates” based on the NI rates changing mid tax year. | |||
| Tax/Allowance | 2022/23 | 2023/24 | 2024/25 |
| Married woman’s reduced rate for (primary) Class 1 contribution rates | |||
| Weekly earnings from between the Primary Threshold and Upper Earnings Limit | 7.1% | 5.35% | 3.85% |
| Weekly earnings above the Upper Earnings Limit | 2.73% | 2% | 2% |
| Class 1 NICs: Employer NIC rates (£ per week - except where stated) |
|||
| Employer’s (secondary) Class 1 contribution rates | |||
| Below the Secondary Threshold | 0% | 0% | 0% |
| Above the Secondary Threshold | 15.05% | 13.8% | 13.8% |
| Employer’s (secondary) Class 1 contribution rates for employees under 21 | |||
| Below the Upper Secondary Threshold | 0% | 0% | 0% |
| Above the Secondary Threshold | 15.05% | 13.8% | 13.8% |
| Employer’s (secondary) Class 1 contribution rates for Apprentices under 25 | |||
| Below the Upper Secondary Threshold | 0% | 0% | 0% |
| Above the Secondary Threshold | 15.05% | 13.8% | 13.8% |
| Class 2 NICs: Self-employed rates and thresholds (£ per week - except where stated) |
|||
| Small Profits Threshold | £6,725 per year | £6,725 per year | £6,725 per year |
| Above the Small Profits Threshold | £3.15 | £3.45 | £0 |
| Class 3 NICs: Other rates and thresholds (£ per week) |
|||
| Voluntary contributions | £15.85 | £17.45 | £17.45 |
| Class 4 NICs: Self-employed rates and thresholds (£ per year) |
|||
| Lower Profits Limit | £9,880 | £12,570 | £12,570 |
| Upper Profits Limit | £50,270 | £50,270 | £50,270 |
| Class 4 contribution rates | |||
| Below the Lower Profits Limit | 0% | 0% | 0% |
| Between the Lower Profits Limit and Upper Profits Limit | 10.25% | 9% | 6% |
| Above the Upper Profits Limit | 3.25% | 2% | 2% |
Further information
Working and Child Tax Credits, Child Benefit and Guardians Allowance
| Tax/Allowance | 2022/23 | 2023/24 | 2024/25 |
|---|---|---|---|
| Working tax credits (per year) | |||
| Basic element | £2,070 | £2,280 | £2,435 |
| Couple and lone parent element | £2,125 | £2,340 | £2,500 |
| 30 hour element | £860 | £950 | £1,015 |
| Disabled worker element | £3,345 | £3,685 | £3,935 |
| Severe disability element | £1,445 | £1,595 | £1,705 |
| Childcare element of the working tax credit (per week) | |||
| Maximum eligible cost for one child | £175 | £175 | £175 |
| Maximum eligible cost for two or more children | £300 | £300 | £300 |
| Percentage of eligible costs covered | 70% | 70% | 70% |
| Child tax credit (per year) | |||
| Family element | £545 | £545 | £545 |
| Child element | £2,935 | £3,235 | £3,455 |
| Disabled child element | £3,545 | £3,905 | £4,170 |
| Severely disabled child element | £4,975 | £5,480 | £5,850 |
| Child benefit (per week) | |||
| Eldest/only child | £21.80 | £24.00 | £25.60 |
| Other children | £14.45 | £15.90 | £16.95 |
| Guardian's allowance | £18.55 | £20.40 | £21.75 |
Further information
Capital, assets and property
| Tax/Allowance | 2022/23 | 2023/24 | 2024/25 |
|---|---|---|---|
| Pensions allowances | |||
| Lifetime Allowance limit | £1,073,100 | £1,073,100 | Abolished |
| Standard Lump Sum Allowance | n/a | n/a | £268,275 |
| Standard Lump Sum and Death Benefit Allowance | n/a | n/a | £1,073,100 |
| Standard Overseas Transfer Allowance | n/a | n/a | £1,073,100 |
| Annual Allowance limit | £40,000 | £60,000 | £60,000 |
| Tapered Annual Allowance | From £4,000 to £40,000 | From £10,000 to £60,000 | From £10,000 to £60,000 |
| Money Purchase Annual Allowance | £4,000 | £10,000 | £10,000 |
| Tax free savings accounts | |||
| Individual Savings Account (ISA) subscription limit | £20,000* *Of which £4,000 may be saved into a Lifetime ISA |
£20,000* *Of which £4,000 may be saved into a Lifetime ISA |
£20,000* *Of which £4,000 may be saved into a Lifetime ISA |
| Junior ISA subscription limit | £9,000 | £9,000 | £9,000 |
| Child Trust Fund (CTF) subscription limit | £9,000 | £9,000 | £9,000 |
| Insurance Premium Tax | |||
| Standard rate | 12% | 12% | 12% |
| Higher rate | 20% | 20% | 20% |
| Capital Gains Tax | |||
| Main rates for individuals | 10% / 20% | 10% / 20% | 10% / 20% |
| Rates for individuals (for gains on residential property not eligible for Private Residence Relief, and carried interest) | 18% / 28% | 18% / 28% | 18% / 28% |
| Main rate for trustees and personal representatives | 20% | 20% | 20% |
| Rate for trustees and personal representatives (for gains on residential property not eligible for Private Residence Relief) | 28% | 28% | 28% |
| Annual Exempt Amount (AEA) for individuals and personal representatives | £12,300 | £6,000 | £3,000 |
| AEA for most trustees | £6,150 | £3,000 | £1,500 |
| Rate on gains subject to entrepreneurs’ relief | 10% | 10% | 10% |
| Rate on gains subject to investors’ relief | 10% | 10% | 10% |
| Business Asset Disposal Relief (formerly Entrepreneurs’ relief): lifetime limit on gains for entrepreneurs | £1,000,000 | £1,000,000 | £1,000,000 |
| Investors’ relief: lifetime limit on gains for external investors | £10,000,000 | £10,000,000 | £10,000,000 |
| Inheritance tax | |||
| Rate (for estates) | 40% | 40% | 40% |
| Reduced rate (for estates leaving 10% or more to charity) | 36% | 36% | 36% |
| Rate (for chargeable lifetime transfers) | 20% | 20% | 20% |
| Nil rate band limit | £325,000 | £325,000 | £325,000 |
| Residence nil rate band limit | £175,000 | £175,000 | £175,000 |
| Taper threshold for residence nil-rate band | £2,000,000 | £2,000,000 | £2,000,000 |
| Stamp Duty Land Tax - residential property | |||
| Standard Rate (on portion of value above threshold) | |||
| £0 to £125,000 | 0% | 0% | 0% |
| £125,000 to £250,000 | 2% | 0% | 0% |
| £250,000 to £925,000 | 5% | 5% | 5% |
| £925,000 to £1,500,000 | 10% | 10% | 10% |
| £1,500,000 + | 12% | 12% | 12% |
| Rate (on portion of value above threshold) on or after 1 April 2016 if purchase is of an additional residential property | |||
| £0 to £125,000 | 3% | 3% | 3% |
| £125,000 to £250,000 | 5% | 3% | 3% |
| £250,000 to £925,000 | 8% | 8% | 8% |
| £925,000 to £1,500,000 | 13% | 13% | 13% |
| £1,500,000 + | 15% | 15% | 15% |
Further information
Read more about pensions allowances
Read more about Tax free savings accounts
Read more about Capital Gains Tax
Read more about Inheritance tax
Read more about Stamp Duty Land Tax
Business
| Tax-Allowance | 2022/23 | 2023/24 | 2024/25 |
|---|---|---|---|
| Corporation tax rates | |||
| Small Profits Rate (Below £50,000) | n/a | 19% | 19% |
| Marginal Rate (Profits between £50,000 to £250,000) | n/a | 26.5% | 26.5% |
| Main rate | 19% | 25% | 25% |
| Value Added Tax | |||
| Standard rate | 20% | 20% | 20% |
| Reduced rate | 5% | 5% | 5% |
| Zero rate items | 0% | 0% | 0% |
| VAT registration threshold | £85,000 | £85,000 | £85,000 |
| VAT deregistration threshold | £83,000 | £83,000 | £83,000 |
Further information
New flat rate State Pension
| Tax-Allowance | 2022/23 | 2023/24 | 2024/25 |
|---|---|---|---|
| Full new flat rate State Pension (per week) | £185.15 | £203.85 | £221.20 |
Further information
Read more
Income Tax
Inheritance Tax
- Transferable nil rate band: planning ideas
- Normal expenditure out of income exemption
- Inheritance Tax potentially exempt transfers
- Family investment companies
- Inheritance Tax meets Child Benefit Tax
- Inheritance Tax taper relief
- Inheritance tax and pensions
- Gifting guidance for attorneys and deputies
- Transferable nil rate band: the facts
ISA
Pensions allowances
Trusts
Tech Matters
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