01308 488066

What are the current tax rates and allowances?

Income tax allowances

Allowances 2022/22 2023/24 2024/25
Personal Allowances 
Those born after 5 April 1948 12,570 12,570 12,570
Income limit for personal allowance (i) 100,000 100,000 100,000
Married Couple’s Allowance (MCA) (ii)
Maximum amount 9,415 10,375 11,080
Minimum amount 3,640 4,010 4,280
Income limit for Married Couple's Allowance for those born before 6 April 1935 31,400 34,600 37,000
Blind Person's Allowance 2,600 2,870 3,070
Marriage Allowance (iii) 1,260 1,260 1,260
Trading Allowance 1,000 1,000 1,000
Property Allowance 1,000 1,000 1,000

(i) The personal allowance reduces where the individual's income in the tax year is above the income limit by £1 for every £2 above the limit until the level of the basic personal allowance is reached.

(ii) Married Couple's Allowance may apply if one of the couple was born before 6 April 1935, relief is given at 10%

(iii) The allowance is the transferable part of the personal allowance which applies to transfers between spouses or civil partners both born after 6 April 1935. It can be transferred where neither transferer nor transferee is liable income tax above the basic rate

Tax Bands for England, Scotland and Wales

Band Band name Tax Rate
2024/25  Scotland     Wales England and

Northern Ireland

£12,571 - £14,876 Starter Rate 19%
£12,571 - £50,270 Basic Rate 20% 20%
£14,877 - £26,561 Basic Rate 20%
£26,562 - £43,662 Intermediate Rate 21%
£43,663 - £75,000 Higher Rate 42%
£50,271 - £125,140 Higher Rate 40% 40%
£75,001 - £125,140 Advanced Rate 45%
£125,141 and above Additional Rate 45% 45%
£125,141 and above Top Rate 48%
Band Band name Tax Rate
2023/24  Scotland     Wales England and

Northern Ireland

£12,571 - £14,732 Starter Rate 19%
£12,571 - £50,270 Basic Rate 20% 20%
£14,733 - £25,688 Basic Rate 20%
£25,689 - £43,662 Intermediate Rate 21%
£43,663 - £125,140 Higher Rate 42%
£50,271 - £125,140 Higher Rate 40% 40%
£125,141 and above Additional Rate 45% 45%
£125,141 and above Top Rate 47%
Band Band name Tax Rate
2022/23  Scotland     Wales England and

Northern Ireland

£12,571 - £14,732 Starter Rate 19%
£12,571 - £50,270 Basic Rate 20% 20%
£14,733 - £25,688 Basic Rate 20%
£25,689 - £43,662 Intermediate Rate 21%
£43,663 - £150,000 Higher Rate 41%
£50,271 - £150,000 Higher Rate 40% 40%
£150,001 and above Additional Rate 45% 45%
£150,000 and above Top Rate 46%

 

Savings Allowances

Allowances 2022/23 2023/24 2024/25
Dividend Allowance 2,000 1,000 500
Personal Savings Allowance
   Basic rate taxpayer 1,000 1,000 1,000
   Higher rate taxpayer 500 500 500
   Additional rate taxpayer £0 £0 £0

Income Tax Rates (Personal and Savings)

2022/23 2023/24 2024/25
Basic rate of 20% up to income of 37,700 37,700 37,700
Higher rate of 40% up to income between £37,701-£150,000 £37,701-£150,000 £37,701-£125,140
Additional rate of 45% on income of 150,001+ 150,001+ £125,140+
Starting rate of 0% on savings up to (within limits) 5,000 5,000 5,000
Dividends:
 Basic rate taxpayer 8.75% 8.75% 8.75%
Higher rate taxpayer 33.75% 33.75% 33.75%
Additional rate taxpayer 39.35% 39.35% 39.35%

Capital gains tax

2022/23 2023/24 2024/25
Standard rate 10%* 10%* 10% *
Rate for higher and additional rate taxpayers 20% ** 20% ** 20% **
Annual exemption 12,300 6000 3000
Business Asset Disposal Relief

(previously entrepreneurs' relief) rate

10% 10% 10%
Business Asset Disposal Relief lifetime limit £1m £1m £1m
Investors' relief rate 10% 10% 10%
Investors' relief lifetime limit £10m £10m £10m

*8% surcharge for gains on residential property and carried interest. This makes the standard rate 18%.

**24% for gains on residential property and 28% for gains on carried interest

Inheritance tax

Nil Rate Band (NRB) 2022/23 2023/24 2024/25
Nil Rate Band (NRB) 325,000 325,000 325,000
Residential nil rate band (RNRB) 175,000 175000 175000
Rate of tax applying on the value of assets above the total of the NRB and RNRB 40% 40% 40%

 

Comments are closed.