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Article ID: 2435
Last updated: 21 Mar, 2024
Please select from below:
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Income tax
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Income Tax Allowances
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2023/24 |
2022/23 |
2021/22
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2020/21
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2019/20
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2018/19
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Personal Allowance (1)
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£12,570 |
£12,570 |
£12,570
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£12,500
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£12,500
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£11,850
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Personal Savings Allowance Basic Rate Taxpayers
Personal Savings Allowance Higher Rate Taxpayers
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£1,000
£500
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£1,000
£500
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£1,000
£500
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£1,000
£500
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£1,000
£500
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£1,000
£500
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Income Limit for Personal Allowance(2)
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£100,000 |
£100,000 |
£100,000
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£100,000
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£100,000
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£100,000
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Income limit for age-related allowances (Married Couples Allowance from 2016/17) (3)
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£34,600 |
£31,400 |
£30,400
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£30,200
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£29,600
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£28,900
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Blind Person’s allowance
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£2,870 |
£2,600 |
£2,520
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£2,500
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£2,450
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£2,320
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Maximum amount of Married Couple’s allowance (2) (4)
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£10,375 |
£9,415 |
£9,125
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£9,075
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£8,915
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£8,695
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Transferable Tax Allowance for married couples and civil partners (5)
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£1,260 |
£1,260 |
£1,260
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£1,250
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£1,250
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£1,190
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Dividend allowance (6)
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£1,000 |
£2,000 |
£2,000
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£2,000
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£2,000
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£2,000
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Rent a room limit
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£7,500 |
£7,500 |
£7,500
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£7,500
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£7,500
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£7.500
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- From 2017/18 onwards, all individuals will be entitled to the same personal allowance, regardless of the individuals' date of birth.
- The personal allowance is reduced by £1 for every £2 of income in excess of the £100,000 limit irrespective of date of birth.
- Married couples allowance reduces by £1 for every £2 of income in excess of the income limit, reducing to the minimum allowance (£3,510 2020/21). It can be reduced further under (2).
- The relief is limited to 10% and can only be claimed if at least one spouse was born before 6 April 1935. The allowance is reduced where income exceeds the age related income limit down to a minimum of £3,510 2020/2021.The allowance extends to Civil Partnerships.
- Available to those born after 5 April 1935. It allows a spouse or civil partner who is not liable to income tax above the basic rate to transfer this amount of their personal allowance to their spouse/civil partner. The recipient must not be liable to tax above the basic rate.
- From 6 April 2023 the Dividend Allowance is reduced to £2,000 and from 6 April 2024 will further reduce to £1000.
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Tax bands and corresponding tax rates
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2023/24 |
2022/23 |
2021/22
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2020/21
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2019/20
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2018/19
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Starting Rate for savings income
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0% |
0% |
0%
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0%
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0%
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0%
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Starter Rate
In Scotland
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19% |
19%
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19%
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19%
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N/A
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Basic Rate in
England & Northern Ireland
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20% |
20%
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20%
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20%
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20%
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Basic Rate in
Scotland
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20% |
20%
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20%
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20%
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20%
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Basic Rate
In Wales
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20% |
20%
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20%
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20%
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20%
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Intermediate Rate in Scotland
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21% |
21%
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21%
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21%
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N/A
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Higher Rate in England
& Northern Ireland
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40% |
40%
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40%
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40%
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40%
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Higher Rate in Scotland
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41% |
41%
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41%
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41%
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N/A
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Higher Rate in Wales
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40% |
40% |
40%
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40%
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40%
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40%
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Additional Rate in England
& Northern Ireland
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45% |
45%
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45%
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45%
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45%
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Top Rate in Scotland
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46% |
46%
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46%
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46%
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45%
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Top Rate in Wales
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45% |
45%
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45%
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45%
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45%
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Dividend Basic Rate
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8.75% |
8.75% |
7.5%
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7.5%
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7.5%
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7.5%
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Dividend Higher Rate
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33.75% |
33.75% |
32.5%
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32.5%
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32.5%
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32.5%
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Dividend Additional Rate
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39.35% |
39.35% |
38.1%
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38.1%
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38.1%
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38.1%
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Starting Rate Limit
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£5,000 |
£5,000 |
£5,000
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£5,000
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£5,000
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£5,000
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Basic Rate Band in England, Wales & Northern Ireland
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£0 - £37,700 |
£0 - £37,700 |
£0 - £37,700
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£0 - £37,500
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£0 - £37,500
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£0 - £33,500
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Higher Rate Band in England, Wales & Northern Ireland
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£37,701 - £125,140 |
£37,701 - £150,000 |
£37,701 - £150,000
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£37,501 - £150,000
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£37,501 - £150,000
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£33,501 - £150,000
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Additional Rate in England, Wales & Northern Ireland
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Over £125,141 |
Over £150,000 |
Over £150,000
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Over £150,000
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Over £150,000
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Over £150,000
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Tax bands for Scotland
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2023/24 |
2022/23 |
2021/22
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2020/21
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2019/20
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2018/19
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Starter Rate Band
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£12,571 - £14,732 |
£12,571 - £14,732 |
£12,571 - £14,667
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£12,501 - £14,585
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£12,500 - £14,549
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11,580
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Basic Rate Band
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£14,733- £25,688 |
£14,733- £25,688 |
£14,668- £25,296
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£14,586 - £25,158
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£14,550 - £24,944
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£13,850
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Intermediate Rate Band
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£25,689 - £43,662 |
£25,689 - £43,662 |
£25,297 - £43,662
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£25,159 - £43,430
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£24,945 - £43,430
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£24,000
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Higher Rate Band
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£43,663 - £125,140 |
£43,663 - £150,000 |
£43,663 - £150,000
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£43,431 - £150,000
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£43,431 - £150,00
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£43,430
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Top Rate Band
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Over £125,140 |
Over £150,000 |
Over £150,000
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Over £150,000
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Over £150,000
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Over £150,000
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National Insurance Contributions
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Rates
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2023/24 |
2022/23 |
2021/22
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2020/21
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2019/20
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2018/19
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Class 1 (Earnings between Primary and Upper earnings limits)
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10% |
12%* |
12%
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12%
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12%
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12%
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Class 1 (Earnings above Upper earnings limit)
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2% |
2%* |
2%
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2%
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2%
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2%
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Class 1(Employers NI earnings over Primary earnings limit)
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13.8% |
13.8%* |
13.8%
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13.8%
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13.8%
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13.8%
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Class 1A (Employers NI on Benefits)
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13.8% |
14.53% |
13.8%
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13.8%
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13.8%
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13.8%
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Class 2 (Flat rate for self-employed)
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£3.45 pw |
£3.15 pw |
£3.05 pw
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£3.00 pw
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£3 pw
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£2.95 pw
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Class 3 (Voluntary)
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£17.45pw |
£15.85pw |
£15.40pw
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£15.30 pw
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£15 pw
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£14.65pw
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Class 4 (Self-Employed Profits between Lower and Upper earnings limits)
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9% on profits between £12,570 and £50,270
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9.73% on profits between £11,908 and £50,270 |
9% on profits between £9,568 and £50,270
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9% on profits between £9,500 and £50,000
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9% on profits between £8,632 and £50,000
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9% on profits between £8,424 and £50,000
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Class 4 (Self-Employed profits above Upper earnings limit)
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2% on profits over £50,270 |
2.73% on profits over £50,270 |
2% on profits over £50,270
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2% on profits over £50,000
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2% on profits over £50,000
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2% on profits over £46,350
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* Temporary increase from 6 April to 5 July 2022
- Class 1 employees earnings between primary and upper limit 13.25%
- Class 1 employees earnings above upper earnings limit 3.25%
- Class 1 employers earnings over primary limit 15.05%
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National Insurance Contributions
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2023/24 |
2022/23
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2021/22
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2020/21
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2019/20
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2018/19
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Weekly Lower Earnings Limit (LEL)
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£123 pw |
£123 pw |
£120 pw
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£120 pw
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£118 pw
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£116pw
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Weekly Primary Threshold (PT)
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£242 pw |
£242 pw* |
£184 pw
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£183 pw
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£166 pw
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£162 pw
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Secondary Threshold (ST)
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£175 pw |
£175 pw |
£170 pw
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£169 pw
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£166 pw
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£162 pw
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Upper Earnings (UEL)
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£967 pw |
£967 pw |
£967 pw
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£962 pw
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£962 pw
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£892 pw
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Upper Profits Limit (UPL)
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£50,270 per year |
£50,270 per year |
£50,270 per year
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£50,000 per year
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£50,000 per year
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£46,350 per year
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Upper Secondary Thresholds for U21’s
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£967 pw |
£967 pw |
£967 pw
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£962 pw
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£962 pw
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£892 pw
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Small Profits Threshold (SPT)
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£6,725 per year |
£6,725 per year |
£6,515 per year
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£6,475 per year
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£6,365 per year
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£6,205 per year
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Lower Profits Limit (LPL)
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£12,570 per year |
£11,908 per year |
£9,568 per year
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£9,500 per year
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£8,632 per year
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£8,424 per year
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Employment Allowance
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£5,000 per year |
£5,000 per year |
£4,000 per year
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£4,000 per year
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£3,000 per year
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£3,000 per year
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Apprentice Upper Secondary Threshold (AUST) for under 25’s
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£967 per week |
£967 |
£967
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£962
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£962
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£892
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* Temporary increase from 6 April to 5 July 2022
Weekly primary threshold £190
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Working and Child Tax Credits
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Working Tax Credit and Child Tax Credit have been replaced by Universal Credit for most people.
Working Tax Credit (per year unless stated otherwise)
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|
2023/24 |
2022/23 |
2021/22
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2020/21
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2019/20
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2018/19
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Basic Element
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£2,280 |
£2,070 |
£2,005
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£3,040 £1,960
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£1,960
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Couple and lone parent element
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£2,340 |
£2,125 |
£2,060
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£2,045
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£2,010
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£2,010
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30 hour element
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£950 |
£860 |
£830
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£825
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£810
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£810
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Disabled worker element
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£3,685 |
£3,345 |
£3,240
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£3,220
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£3,165
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£3,090
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Severe disability element
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£1,595 |
£1,445 |
£1,400
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£1,390
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£1,365
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£1,330
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CHILDCARE ELEMENT
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Maximum eligible cost for one child
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£175 pw |
£175 pw
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£175 pw
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£175 pw
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£175 pw
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£175 pw
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Maximum eligible cost for two or more children
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£ 300 pw |
£ 300 pw |
£ 300 pw
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£300 pw
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£300 pw
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£300 pw
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Percent of eligible costs covered
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70% |
70% |
70%
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70%
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70%
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70%
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Child Tax Credit (per year)
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|
2023/24 |
2022/23 |
2021/22
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2020/21
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2019/20
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2018/19
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Family element
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£545 |
£545 |
£545
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£545 £545
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£545
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Child element
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£3,235 |
£2,935 |
£2,845
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£2,830
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£2,780
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£2,780
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Disabled child element
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£3,905 |
£3,545 |
£3,435
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£3,415
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£3,355
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£3,275
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Severely disabled child element
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£1,575 |
£1,430 |
£1,390
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£1,385
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£1,360
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£1,325
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Child Benefit and Guardian's Allowance
|
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Per Week
|
2023/24 |
2022/23 |
2021/22
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2020/21
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2019/20
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2018/19
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Child Benefit – Eldest or only Child
|
£24 |
£21.80 |
£21.15
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£21.05
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£20.70
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£20.70
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Child Benefit – other children
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£15.90 |
£14.45 |
£14.00
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£13.95
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£13.70
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£13.70
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Guardian’s Allowance
|
£20.40 |
£18.55 |
£18.00
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£17.90
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£17.60
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£17.20
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Tax Free Savings Accounts
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2023/24 |
2022/23 |
2021/22
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2020/21
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2019/20
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2018/19
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Individual Savings Account (ISA) subscription limit
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£20,000 |
£20,000 |
£20,000
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£20,000
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£20,000
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£20,000
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Junior ISA subscription limit
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£9,000 |
£9,000 |
£9,000
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£9,000
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£4,368
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£4,260
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Child Trust Fund (CTF) subscription limit
|
£9,000 |
£9,000 |
£9,000
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£9,000
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£4,368
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£4,260
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Help to Buy ISA – Government Bonus up to
|
£3000 |
£3000 |
£3000
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£3000
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£3000
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£3,000
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Fuel Benefit Charge
|
|
2023/24 |
2022/23 |
2021/22
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2020/21
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2019/20
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2018/19
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Car fuel benefit charge multiplier
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£27,800 |
£27,800 |
£25,300
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£24,500
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£24,100
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£23,400
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Van fuel benefit charge
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£757 |
£757 |
£688
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£666
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£655
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£633
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Van Benefit Charge
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2023/24 |
2022/23 |
2021/22
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2020/21
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2019/20
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2018/19
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Van benefit charge
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£3,960 |
£3,960 |
£3,600
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£3,430
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£3,350
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£3,230
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Authorised Mileage Rates
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Per mile
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2023/24 |
2022/23 |
2021/22
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2020/21
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2019/20
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2018/19
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CARS
|
|
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First 10,000 miles
|
45p |
45p |
45p
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45p
|
45p
|
45p
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Additional miles
|
25p |
25p |
25p
|
25p
|
25p
|
25p
|
|
Each qualifying passenger
|
5p |
5p |
5p
|
5p
|
5p
|
5p
|
|
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OTHER VEHICLES
|
|
|
|
|
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Motorcycles
|
24p |
24p |
24p
|
24p
|
24p
|
24p
|
|
Bikes
|
20p |
20p |
20p
|
20p
|
20p
|
20p
|
|
|
Capital Gains Tax
|
|
2023/24 |
2022/23 |
2021/22
|
2020/21
|
2019/20
|
2018/19
|
|
For taxpayers gains falling in the basic rate tax band (residential property and carried interest)
|
10%(18%) |
10%(18%) |
10%(18%)
|
10%(18%)
|
10%(18%)
|
10%(18%)
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|
For trustees and taxpayers gains falling into higher/additional rate tax bands (residential property and carried interest)
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20%(28%) |
20%(28%) |
20%(28%)
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20% (28%)
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20%(28%)
|
20%(28%)
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Annual Exempt Amount – Individuals
|
£6,000 |
£12,300 |
£12,300
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£12,300
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£12,000
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£11,700
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Annual Exempt Amount – Trusts
|
£3,000 |
£6,150 |
£6,150
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£6,000
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£5,850
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£5,650
|
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Entrepreneurs relief (BADR) lifetime limit
|
£1m |
£1m |
£1m
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£10m
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£10m
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£10m
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Entrepreneurs rate
|
10% |
10% |
10%
|
10%
|
10%
|
10%
|
|
|
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VAT
|
|
VAT Rates
|
|
2023/24 |
2022/23 |
2021/22
|
2020/21
|
2019/20
|
2018/19
|
|
Standard rate
|
20% |
20% |
20%
|
20%
|
20%
|
20%
|
|
Reduced rate
|
5% |
5% |
5%
|
5%
|
5%
|
5%
|
|
|
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VAT Registration Thresholds
|
|
2023/24 |
2022/23 |
2021/22
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2020/21
|
2019/20
|
2018/19
|
|
Registration threshold
|
£85,000 |
£85,000 |
£85,000
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£85,000
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£85,000
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£85,000
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De-registration threshold
|
£83,000 |
£83,000 |
£83,000
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£83,000
|
£83,000
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£83,000
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|
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Capital Allowances
|
|
Expenditure on:
|
|
2023/24 |
2022/23 |
2021/22
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2020/21
|
2019/20
|
2018/19
|
|
Plant & Machinery
|
18% |
18% |
18%
|
18%
|
18%
|
18%
|
|
Plant & Machinery in certain enterprise zones
|
100% |
100% |
100%
|
100%
|
100%
|
100%
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Cars bought from April 2018:
|
|
|
|
|
|
|
|
<50g/km
|
100% |
|
100%
|
100%
|
100%
|
100%
|
|
>51g/km – 110g/km
|
18% |
|
18%
|
18%
|
18%
|
18%
|
|
>110g/km
|
6% |
|
6%
|
6%
|
8%
|
8%
|
|
New and unused zero emission goods vehicles
|
100% |
100% |
100%
|
100%
|
100%
|
100%
|
|
Long life assets / integral features in buildings
|
6% |
|
6%
|
6%
|
8%
|
8%
|
|
Research and Development
|
100% |
|
100%
|
100%
|
100%
|
100%
|
|
Energy saving and water efficient plant and machinery
|
N/A |
N/A |
N/A
|
N/A
|
100%
|
100%
|
|
Structures and buildings allowance(straight line)
|
3% |
3% |
3%
|
3%
|
2%
|
2%
|
|
| For Super Deduction please refer to our knowledge based article Super-Deduction and FYA capital allowances available from 1 April 2021 |
|
Annual Investment Allowance
|
|
From 1 Jan 2019 onwards
|
1 Jan 2016
to
31 Dec 2018
|
1 Apr 2014
to
31 Dec 2015
|
1 Jan 2013
to
31 Mar 2014
|
|
100% allowance up to
|
£1,000,000
|
£200,000
|
£500,000
|
£250,000
|
For additional information HMRC Annual Investment Allowance
|
|
Corporation Tax
|
|
Corporation Tax
|
|
2023/24 |
2022/23 |
2021/22
|
2020/21
|
2019/20
|
2018/19
|
|
Main rate
(all profits except ring fence)
|
25% |
19% |
19%
|
19%
|
19%
|
19%
|
|
Special rate for unit trusts and open-ended investment companies
|
20% |
20% |
20%
|
20%
|
20%
|
20%
|
|
|
|
|
|
|
|
|
|
|
|
Pension Contributions
|
|
|
2023/24 |
2022/23 |
2021/22
|
2020/21
|
2019/20
|
2018/19
|
|
Annual Allowance (see notes)
|
£60,000 |
£40,000 |
£40,000
|
£40,000
|
£40,000
|
£40,000
|
|
Lifetime Allowance
|
£1,073,100 |
£1,073,100 |
£1,073,100
|
£1,073,100
|
£1,055,000
|
£1,030,000
|
|
Money Purchase Annual Allowance
|
£10,000 |
£4,000 |
£4,000
|
£4,000
|
£4,000
|
£4,000
|
|
- Tax relief is given for pension contributions up to the lower of 100% of earnings or the maximum contribution. The maximum contribution is the annual allowance plus unutilised annual allowances from the three previous years. Up to £3,600 may be contributed to a pension irrespective of earnings.
|
|
|
|
|
Inheritance Tax
|
|
|
2023/2024 |
2022/2023 |
2021/22
|
2020/21
|
2019/20
|
2018/19
|
|
Nil Rate Band
|
£325,000 |
£325,000 |
£325,000
|
£325,000
|
£325,000
|
£325,000
|
|
Main residence nil rate band
|
£175,000 |
£175,000 |
£175,000
|
£150,000
|
£125,000
|
£100,000
|
|
Rate over nil band
|
40% |
40% |
40%
|
40%
|
40%
|
40%
|
|
|
Stamp Duty
|
|
INCREMENTAL RATES AS OF 4/12/14*
|
Primary Property
|
Additional Properties
|
|
£1 - £250,000
|
Nil
|
3% (1)
|
|
£250,001 - £925,000
|
5%
|
8%
|
|
£925,001 - £1,500,000
|
10%
|
13%
|
|
Above £1,500,000
|
12%
|
15%
|
|
*There are different rules for the buying of a first home when the purchase price is less than £500,000
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Article ID: 2435
Last updated: 21 Mar, 2024
Revision: 62
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Views: 26674
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