Rates and bands (other than savings and dividend income)
Band £
Rate %
Band £
Rate %
0 - 37,700
20
0 - 37,700
20
37,701 - 125,140
40
37,701 - 150,000
40
Over 125,140
45
Over 150,000
45
Income tax rates in Scotland and Wales on income other than savings and dividend income have been devolved.
Savings income
2023/24 and 2022/23
Savings allowance basic rate
£1,000
Savings allowance higher rate
£500
A starting rate of 0% may be available unless taxable non-savings income exceeds £5,000.
Dividend income
2023/24
2022/23
Dividend allowance
£1,000
£2,000
Dividend ordinary rate
8.75%
8.75%
Dividend upper rate
33.75%
33.75%
Dividend additional rate
39.35%
39.35%
Personal allowance
£12,570
£12,570
Personal allowance income limit
£100,000
£100.000
Marriage allowance
£1,260
£1,260
Married couple’s allowance
£10,375
£9,415
- minimum amount
£4,010
£3,640
- income limit
£34,600
£31,400
Blind person’s allowance
£2,870
£2,600
INDIVIDUAL SAVINGS ACCOUNTS
Overall investment limit
£20,000
£20,000
Junior account investment limit
£9,000
£9,000
CAR, VAN AND FUEL BENEFITS
CO2 emissions g/km
% of list price taxed
Electric range
130 or more
2
For fully diesel cars generally add a 4% supplement (unless the car is registered on or after 1 September 2017 and meets the Euro 6d emissions standard) but the maximum is still 37%. For emissions of 75g/km or more if the CO2 figure does not end in a 5 or 0 round down to the nearest 5 or 0.
Land and buildings in England and N. Ireland
Residential rates may be increased by 3% where further residential properties are acquired.
Residential
Band £
Rate
%
Non-residential
Band £
Rate
%
0 - 250,000
0
0 - 150,000
0
250,001 - 925,000
5
150,001 - 250,000
2
925,001 - 1,500,000
10
Over 250,000
5
First-Time Buyer relief may apply to residential purchases up to £625,000.
2023/24 Class 1 (employed) rates
Earnings per week
%
Earnings per week
%
Up to £242
Nil
Up to £175
Nil
£242.01 - £967
12
Over £175
13.8
Entitlement to contribution-based benefits for employees retained for earnings between £123 and £242 per week.
The employer rate is 0% for certain military veterans, employees under 21 and apprentices under 25 on earnings up to £967 per week.
Class 1A (employers)
13.8% on employee taxable benefits
Class 1B (employers)
13.8% on PAYE Settlement Agreements
Class 2 (self-employed)
nil on profits between £6,725 and £12,570 plus £3.45 per week where profits over £12,570
Class 3 (voluntary)
flat rate per week £17.45
Class 4 (self-employed)
9% on profits between £12,570 and £50,270 plus 2% on profits over £50,270
Individuals
2023/24
2022/23
Higher/additional rate
20%
20%
Higher rates (18/28%) may apply to the disposal of certain residential property and carried interest.
Business Asset Disposal Relief
The first £1m of qualifying gains are charged at 10%.
Death rate
Lifetime rate
Chargeable transfers
2023/24 and 2022/23
Nil
Nil
0 - £325,000 (nil rate band)
A further nil rate band of £175,000 may be available in relation to current or former residences.
Year to 31.3.24
Profits band £
Rate %
Small profits rate
0 - 50,000
19
Marginal rate
50,001 - 250,000
26.5
Main rate
Over 250,000
25
Marginal relief rate
3/200
For the year to 31.3.23 the main rate of corporation tax was 19%. Special rules apply to accounting periods straddling 1 April 2023. For the year to 31.3.24 the profits limits are reduced for a company with associated companies. Different rates apply for ring-fenced (broadly oil industry) profit.
First Year Allowance (FYA) on certain plant, machinery and cars of 0g/km
100%
Corporation tax FYA ('full expensing') on certain new, unused plant and machinery from 1 April 2023
100%
Corporation tax FYA on new, unused long-life assets, integral features of buildings, etc. from 1 April 2023
50%
Annual Investment Allowance £1,000,000 excluding cars
Long-life assets, integral features of buildings, cars over 50g/km
6%
Other plant and machinery
18%
Structure and Buildings Allowance
3%
Lifetime Allowance limit
No LA charge
£1,073,100
Annual Allowance limit
£60,000
£40,000
Money Purchase Annual Allowance
£10,000
£4,000
Annual Registration Limit
£85,000
£85,000
Annual Deregistration Limit
£83,000
£83,000
Disclaimer: Rates are for guidance only. No responsibility for loss occasioned by any person acting/ refraining from action as a result of this information can be accepted by the authors or firm.
New State Pension
203.85
185.15
Old State Pension
156.20
141.85
Statutory pay standard rates - average weekly earnings £123 (£123) or over
Maternity/Adoption Pay
172.48
156.66
Shared Parental Pay
172.48
156.66
Paternity Pay
172.48
156.66
National Living Wage and National Minimum Wage
Age
NLW
21-22
18-20
16-17
Apprentices
From 1 April 2023
£10.42
£10.18
£7.49
£5.28
£5.28
Applies to apprentices under 19, or 19 and over in the first year of apprenticeship. NLW applies to those aged 23 and over.
TAX RELIEFS FOR INDIVIDUALS
Enterprise Investment Scheme (EIS)
Relief on investments in certain unquoted trading companies up to £1m per annum (£2m for knowledge intensive companies):
• Income tax relief at 30% • Capital gains exemption on disposal
Unlimited amounts of capital gains from the disposal of other assets may be able to be deferred by making an EIS investment.
Seed Enterprise Investment Scheme (SEIS)
Relief on investments in certain unquoted trading companies up to £200,000* per annum:
• Income tax relief at 50% • Capital gains exemption on disposal
Capital gains from the disposal of other assets may be exempt up to £100,000* per annum by making an SEIS investment.
Venture Capital Trusts (VCTs)
Relief on investments in certain quoted companies up to £200,000 per annum:
• Income tax relief at 30% • Capital gains exemption on disposal
Dividends received from VCTs may be exempt from income tax.
*Limits subject to Parliamentary approval.
