Income Tax Rates and bands (other than savings and dividend income) 2023/24 2022/23 Band £ Rate % Band £
Inheritance Tax Death rate Lifetime rate
Chargeable transfers 2023/24 and 2022/23
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 0 - 37,700
20 40
37,701 - 125,140
40 37,701 - 150,000 45 Over 150,000
Over 125,140 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% Income Tax Reliefs 2023/24 2022/23 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 Pensions 2023/24 2022/23 Lifetime Allowance (LA) limit £1,073,100
Devolved Income Tax Scotland rates and bands 2023/24
2022/23
Band £
Rate % Band £
Rate %
0 - 2,162
19 0 - 2,162
19 20 21 41 46
2,163 - 13,118 13,119 - 31,092 31,093 - 125,140
20 2,163 - 13,118 21 13,119 - 31,092 42 31,093 - 150,000 47 Over 150,000
Over 125,140
Wales rates and bands 2023/24
2022/23
Band £
Rate % Band £
Rate %
0 - 37,700
20 0 - 37,700
20 40 45
37,701 - 125,140
40 37,701 - 150,000 45 Over 150,000
Over 125,140
National Insurance 2023/24 Class 1 (employed) rates Employee
Employer
Earnings per week
% Earnings per week
%
Up to £242
Nil Up to £175 12 Over £175
Nil
£242.01 - £967
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 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
No LA charge £60,000
Annual Allowance limit Money Purchase Annual Allowance
£40,000
£10,000
£4,000
Corporation Tax Year to 31.3.24 Small profits rate
Profits band £
Rate %
0 - 50,000
19
Marginal rate
50,001 - 250,000 26.5
Main rate
Over 250,000
25
Marginal relief fraction 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.
Rates & Allowances
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