Our Tax Card for 2024/25 breaks down the most important rates and allowances, both personal and business, that you should be aware of over the coming year.
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tax rates 2024/25
Income Tax Rates and bands (other than savings and dividend income) 2024/25 2023/24 Band £ Rate % Band £
Rate %
0 - 37,700
20 0 - 37,700
20 40
37,701 - 125,140
40 37,701 - 125,140
Over 125,140 45 Income tax rates in Scotland and Wales on income other than savings and dividend income have been devolved. Savings income 2024/25 and 2023/24 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 2024/25 2023/24 Dividend allowance £500 £1,000 Dividend ordinary rate 8.75% 8.75% Dividend upper rate 33.75% 33.75% Dividend additional rate 39.35% 39.35% Income Tax Reliefs 2024/25 2023/24 Personal allowance £12,570 £12,570 Personal allowance income limit £100,000 £100,000 Marriage allowance £1,260 £1,260 Married couple’s allowance £11,080 £10,375 - minimum amount £4,280 £4,010 - income limit £37,000 £34,600 Blind person’s allowance £3,070 £2,870 Inheritance Tax Death rate Lifetime rate 45 Over 125,140 Chargeable transfers 2024/25 and 2023/24
Nil
Nil
0 - £325,000 (nil rate band)
40% Over £325,000 A further nil rate band of £175,000 may be available in relation to current or former residences. 20%
Car, Van and Fuel Benefits 2024/25 CO 2 emissions g/km
% of list price taxed
0
2
1 - 50 Electric range 130 or more
2 5 8
70 - 129 40 - 69 30 - 39 under 30
12 14 15 +1
51 - 54
For every extra 5 160 and above
37 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 CO 2 figure does not end in a 5 or 0 round down to the nearest 5 or 0. 2024/25 Car fuel benefit £27,800 Van benefit £3,960 Van fuel benefit £757 Stamp Duty Land Tax 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 Over 1,500,000 12 First-Time Buyer relief may apply to residential purchases up to £625,000.* *The residential property rules are scheduled to change from 1 April 2025.
National Insurance 2024/25 Class 1 (employed) rates Employee
Employer
Earnings per week
% Earnings per week
% Nil
Up to £242
Nil
Up to £175
£242.01 - £967
8 Over £175
13.8
Over £967 2 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 (£3.45 per week where those with profits below £6,725 wish to make a voluntary contribution) Class 3 (voluntary) flat rate per week £17.45 Class 4 (self-employed) 6% on profits between £12,570 and £50,270 plus 2% on profits over £50,270
Capital Gains Tax Individuals
2024/25
2023/24
Exemption
£3,000
£6,000
Standard rate
10% 20%
10% 20%
Higher/additional rate
Trusts Exemption
£1,500
£3,000
Rate 20% Higher rates (18/24% for 2024/25 and 18/28% for 2023/24) may apply to the 20%
disposal of certain residential property. Business Asset Disposal Relief The first £1m of qualifying gains are charged at 10%.
Individual Savings Accounts
2024/25 £20,000
2023/24 £20,000
Overall investment limit
Junior account investment limit
£9,000
£9,000
Corporation Tax
Rate %
Years to 31.3.24 and 31.3.25
Profits band £
Small profits rate
0 - 50,000
19
Marginal rate
50,001 - 250,000 26.5
Main rate
Over 250,000
25
Marginal relief fraction 3/200 Profits limits are reduced for a company with associated companies. Different rates apply for ring-fenced (broadly oil industry) profit. Capital Allowances
First Year Allowance (FYA) on certain plant, machinery and cars of 0g/km (for cars purchased before 1 April 2025) Corporation tax FYA (‘full expensing’) on certain new, unused plant and machinery from 1 April 2023 Corporation tax FYA on new, unused long-life assets, integral features of buildings, etc. from 1 April 2023 Annual Investment Allowance £1,000,000 excluding cars Writing Down Allowance Long-life assets, integral features of buildings, cars over 50g/km
100%
100%
50%
6%
18%
Other plant and machinery
3%
Structures and Buildings Allowance
Pensions
2024/25
2023/24
Lifetime Allowance (LA) limit
No LA charge No LA charge
Annual Allowance limit
£60,000
£60,000 £10,000
Money Purchase Annual Allowance £10,000
Value Added Tax
From 1.4.24 From 1.4.23
Standard rate Reduced rate
20%
20%
5%
5%
Annual Registration Limit Annual Deregistration Limit
£90,000 £88,000
£85,000 £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.
Selected Rates
2024/25
2023/24
Weekly benefit
£
£
New State Pension Old State Pension
221.20 169.50
203.85
156.20 Statutory pay standard rates - average weekly earnings £123 (£123) or over Sick Pay 116.75 109.40 Maternity/Adoption Pay 184.03 172.48 Shared Parental Pay 184.03 172.48 Paternity Pay 184.03 172.48 National Living Wage and National Minimum Wage Age NLW 18-20 16-17 Apprentices From 1 April 2024 £11.44 £8.60 £6.40 £6.40 Applies to apprentices under 19 or 19 and over in the first year of apprenticeship. NLW applies to those aged 21 and over. Tax Reliefs for Individuals 2024/25 and 2023/24 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.
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