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Income Tax – England and Northern Ireland

Income Tax – England and Northern Ireland

Rates Of Tax 2023/2024 2024/2025
Starting rate for savings (Restricted to savings income only and not available if taxable non-savings income exceeds starting rate band.) 0% 0%
Basic rate 20% 20%
Higher rate 40% 40%
Additional rate 45% 45%
Dividends:    
For basic rate taxpayers 8.75% 8.75%
For higher rate taxpayers 33.75% 33.75%
For additional rate taxpayers 39.35% 39.35%
Starting-rate limit (for savings income) £5,000 £5,000
Threshold of taxable income above which higher rate applies £37,700 £37,700
Threshold of taxable income above which additional rate applies £125,140 £125,140
Threshold above which child benefit charge applies (1% of benefit for every £200 of income over): £50,000 £60,000
Trusts    
De minimis amount for trusts
(split between trusts created by the same Settlor - subject to a minimum of 1/5th)
N/A £500
Standard rate band
(split between trust created by the same Settlor, subject to a minimum of 1/5th of the full amount)
£1,000 N/A
Rate applicable to trusts: - Dividends 39.35% 39.35%
Other income 45% 45%
Personal Allowances    
Personal Allowance £12,570 £12,570
Income limit for Personal Allowance £100,000 £100,000
Personal Savings Allowance:    
For basic rate taxpayers £1,000 £1,000
For higher rate taxpayers £500 £500
For additional rate taxpayers NIL NIL
Dividend Allowance (at 0%) £1,000 £500
Marriage Tax Allowance (for spouse/civil partners born on or after 6 April 1935) Up to £1,260 Up to £1,260
Married Couple's Allowance (maximum) at 10% † £10,375 £11,080
Married Couple's Allowance (minimum) at 10% † £4,010 £4,280
Income limit for age-related allowances *(applies to married couples allowance only) £34,600* £37,000*
§ The Personal Allowance reduces by £1 for every £2 of income above the income limit irrespective of age.

Where at least one spouse/civil partner was born before 6 April 1935.

  • Available if spouse pays income tax at the basic rate.
    ** Married Couple's Allowance is available to people who are married or in a civil partnership.
   
Enterprise Investment Scheme relief limit on £1,000,000 max 30% 30%
Seed Enterprise Investment relief limit on £200,000 50% 50%
Venture Capital Trust relief limit on £200,000 max 30% 30%