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.
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| 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% |
Value Added Tax
| VAT Rates & Thresholds | 2023/2024 | 2024/2025 |
|---|---|---|
| Standard rate | 20% | 20% |
| Annual registration threshold | £85,000 | £90,000 |
| Deregistration threshold | £83,000 | £88,000 |
Corporation Tax
| Tax Rates & Thresholds | 2023/2024 | 2024/2025 |
|---|---|---|
| Small profits rate | 19% | 19% |
| Main rate* | 25% | 25% |
| Marginal relief lower limit | £50,000 | £50,000 |
| Marginal relief upper limit | £250,000 | £250,000 |
| Standard fraction | 3/200 | 3/200 |
* Main rate applies to companies with profits over £250,000.
Income Tax – Rates & Bands (non-savings and non-dividend income for Scottish taxpayers)
| Rate | 2023/2024 (Threshold) | 2023/2024 (Rate) | 2024/2025 (Threshold) | 2024/2025 (Rate) |
|---|---|---|---|---|
| Starter rate | £12,570* | 19% | £12,570 | 19% |
| Basic rate | £14,732 | 20% | £14,876 | 20% |
| Intermediate rate | £25,688 | 21% | £26,561 | 21% |
| Higher rate | £43,662 | 41% | £43,662 | 42% |
| Advanced rate | N/A | N/A | £75,000 | 45% |
| Top rate | £125,140** | 46% | £125,140** | 48% |
*Threshold of taxable income above which basic rate applies assuming individual is in receipt of full UK personal allowance.
The Personal Allowance reduces by £1 for every £2 of income above £100,000 irrespective of age (under the income threshold).
Capital Gains Tax
| Categories & Rates | 2023/2024 | 2024/2025 |
|---|---|---|
| Exemptions | ||
| Individuals, estates etc. | £6,000 | £3,000 |
| Trusts generally* | £3,000 | £1,500 |
| Tax Rates | ||
| Individuals - Up to the basic rate limit | 10%** | 10%** |
| Individuals - Above the basic rate limit | 20%** | 20%** |
| Trustees and personal representatives | 20%** | 20%** |
| Business Asset Disposal Relief*** | ||
| Gains taxed at: | 10% | 10% |
| Lifetime limit | £1,000,000 | £1,000,000 |
*Where a Settlor has created more than one trust, the exemption is spread across all trusts, subject to a minimum of 1/5th of the trust annual exemption.
**Except for carried interest and chargeable gains on residential property which are taxed at 18% up to the basic rate limit and 28% (2023/2024) or 24% (2024/2025) above the basic rate limit.
***For trading businesses and companies (minimum 5% employee or director shareholding) held for at least one year.
Inheritance Tax
| Categories & Thresholds | 2023/2024 | 2024/2025 |
|---|---|---|
| Rates of Tax on Death Transfers | ||
| Nil rate band | £325,000 | £325,000 |
| Residence nil rate band | £175,000 | £175,000 |
| Rate | 40%* | 40%* |
| - Lifetime transfers to and from certain trusts | 20% | 20% |
| Main Exemptions | ||
| Normal expenditure out of income | No limit | No limit |
| Transfers to - UK-domiciled spouse/civil partner | No limit | No limit |
| Transfers to - Non-UK-domiciled spouse/civil partner (from UK-domiciled spouse) | £325,000 | £325,000 |
| Transfers to - UK-registered charities | No limit | No limit |
| Annual exemption per donor | £3,000 | £3,000 |
| Small gifts exemption | £250 | £250 |
| Wedding/Civil Partnership Gifts | ||
| Wedding/civil partnership gifts by - Parent | £5,000 | £5,000 |
| Wedding/civil partnership gifts by - Grandparent | £2,500 | £2,500 |
| Wedding/civil partnership gifts by - Other person | £1,000 | £1,000 |
| Business Relief | ||
| 100% relief: businesses, unlisted/AIM companies, certain farmland/building | — | |
| 50% relief: certain other business assets | — | |
* A lower rate of 36% applies where at least 10% of deceased's net estate is left to charity.
Individual Savings Accounts (ISA)
| ISA Type | 2023/2024 | 2024/2025 |
|---|---|---|
| Cash/Stocks & Shares Annual investment limit | £20,000 | £20,000 |
| Lifetime ISA | £4,000 | £4,000 |
| Help to Buy ISA | £1,000 initially and thereafter £200 pm | £1,000 initially and thereafter £200 pm |
National Insurance Contributions 2024/2025
| Category | Weekly | Monthly | Yearly |
|---|---|---|---|
| Class 1 Employee | |||
| Lower Earnings Limit (LEL) | £123 | £533 | £6,396 |
| Primary threshold | £242 | £1,048 | £12,570 |
| Secondary threshold | £175 | £758 | £9,100 |
| Upper Earnings Limit (UEL) | £967 | £4,189 | £50,270 |
| Class 1 Employee Contributions | |||
| Total earnings £ per week - Rate | |||
| Below £242* | Nil | ||
| £242.01 - £967 | 8% | ||
| Excess over £967 | 2% | ||
| Class 1 Employer Contributions | |||
| Total earnings £ per week - Rate | |||
| Below £175** | Nil | ||
| Excess over £175 | 13.8% | ||
| Additional Classes | |||
| Class 2 (voluntary) | Flat rate of £3.45 per week | ||
| Class 3 (voluntary) | Flat rate per week £17.45 | ||
| Class 4 (self-employed) | 8% on profits between £12,570 - £50,270, 2% on profits above £50,270 | ||
* This is the primary threshold below which no employee NI contributions are payable.
** This is the secondary threshold below which no employer NI contributions are payable.
Pensions
| Tax Year | Lifetime Allowance | Annual Allowance | Money Purchase Annual Allowance |
|---|---|---|---|
| 2023/2024 | £1,073,100 | £60,000**** | £10,000 |
| 2024/2025 | £1,073,100* | £60,000**** | £10,000 |
* The Lifetime Allowance will be abolished in the 2024/25 tax year.
** For those with income over £110,000, the annual allowance is reduced by £1 for every £2 that adjusted income exceeds £150,000 subject to a minimum allowance of £10,000.
*** For those with income over £200,000, the annual allowance is reduced by £1 for every £2 that adjusted income exceeds £240,000 subject to a minimum allowance of £4,000.
**** For those with income over £200,000, the annual allowance is reduced by £1 for every £2 that adjusted income exceeds £260,000 subject to a minimum allowance of £10,000.
Income Tax – Rates & Bands (non-savings and non-dividend income for Welsh taxpayers)
| Rate | 2023/2024 (Threshold) | 2023/2024 (Rate) | 2024/2025 (Threshold) | 2024/2025 (Rate) |
|---|---|---|---|---|
| Basic rate | £12,570* | 20% | £12,570* | 20% |
| Higher rate | £37,300* | 40% | £37,300* | 40% |
| Additional rate | £125,140** | 45% | £125,140** | 45% |
*£37,700 + £12,570 = £50,270
The Personal Allowance reduces by £1 for every £2 of income above £100,000 irrespective of age (under the income threshold).