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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