2024 Budget Report

Income Tax Rates and bands (other than savings and dividend income) 2024/25 2023/24 Band £ Rate % Band £

Inheritance Tax Death rate Lifetime rate

Chargeable transfers 2024/25 and 2023/24

Nil

Nil

0 - £325,000 (nil rate band)

Rate %

40% 20% Over £325,000 A further nil rate band of £175,000 may be available in relation to current or former residences.

0 - 37,700

20 40 45

0 - 37,700

20 40

37,701 - 125,140

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 Pensions 2024/25 2023/24 Lifetime Allowance (LA) limit Over 125,140

Devolved Income Tax Scotland rates and bands 2024/25

2023/24

Band £

Rate % Band £

Rate %

0 - 2,306

19 20 21 42 45 48

0 - 2,162

19 20 21 42 47

2,307 - 13,991 13,992 - 31,092 31,093 - 62,430 62,431 - 125,140

2,163 - 13,118 13,119 - 31,092 31,093 - 125,140

Over 125,140

Over 125,140

Wales rates and bands 2024/25

2023/24

Band £

Rate % Band £

Rate %

0 - 37,700

20 40 45

0 - 37,700

20 40 45

37,701 - 125,140

37,701 - 125,140

Over 125,140

Over 125,140

National Insurance 2024/25 Class 1 (employed) rates Employee

Employer

Earnings per week

% Earnings per week

%

Up to £242

Nil Up to £175

Nil

£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 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 with profits below £6,725 wish to make a voluntary contribution)

No LA charge £60,000

No LA charge £60,000

Annual Allowance limit Money Purchase Annual Allowance Corporation Tax Years to 31.3.24 and 31.3.25

£10,000

£10,000

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 fraction 3/200 Profits limits are reduced for a company with associated companies. Different rates apply for ring-fenced (broadly oil industry) profit.

Rates & Allowances

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