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% |
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