Tax Data - Rates for 2023/2024

INCOME TAX

Rates and bands (other than savings and dividend income)

2023/24 Band £	Rate %	2022/23 Band £	Rate %
0 – 37,700	20	0 – 37,700	20
37,701 – 125,140	40	37,701 – 150,000	40
Over 125,140	45	Over 150,000	45

 

Savings income – 2023/24 and 2022/23

Savings allowance basic rate	£1,000
Savings allowance higher rate	£500

 

Dividend income – 2023/24 and 2022/23

Dividend Income	2023/24	2022/23
Dividend allowance	£1,000	£2,000
Dividend ordinary rate	8.75%	8.75%
Dividend upper rate	33.75%	32.5%
Dividend additional rate	39.35%	38.1%

INCOME TAX RELIEFS

	2023/24	2022/24
Personal allowance	£12,570	£12,570
Personal allowance income limit	£100,000	£100,000
Marriage allowance	£1,260	£1,260
Married couple’s allowance	£10,375	£9,415
– minimum amount	£4,010	£3,640
– income limit	£34,600	£31,400
Blind person’s allowance	£2,870	£2,600

INDIVIDUAL SAVINGS ACCOUNTS

	2023/24	2022/23
Overall investment limit	£20,000	£20,000
Junior account investment limit	£9,000	£9,000

DEVOLVED INCOME TAX

Scotland rates and bands

2023/24 Band £	Rate %	2022/23 Band £	Rate %
0 – 2,162	19	0 – 2,162	19
2,163 – 13,118	20	2,163 – 13,118	20
13,119 – 31,092	21	13,119 – 31,092	21
31,093 – 125,140	42	31,093 – 150,000	41
Over 125,140	47	Over 150,000	46

Wales rates and bands

2023/24 Band £	Rate %	2022/23 Band £	Rate %
0 – 37,700	20	0 – 37,700	20
37,701 – 125,140	40	37,701 – 150,000	40
Over 125,140	45	Over 150,000	45

Capital Gains Tax

Individuals	2023/24	2022/23
Exemption	£6,000	£12,300
Standard rate	10%	10%
Higher/additional rate	20%	20%
Trusts Exemption	£3,000	£6,150
Rate	20%	20%

Higher rates (18/28%) may apply to the disposal of certain residential property and carried interest.

 

Business Asset Disposal Relief

The first 1m of qualifying gains are charged at 10%

INHERITANCE TAX

Death rate	Lifetime rate	Chargeable transfers 2023/24 and 2022/23
Nil	Nil	0 – £325,000 (nil rate band)
40%	20%	Over £325,000

A further nil rate band of £175,0000 may be available in relation to current or former residences.

CAR VAN AND FUEL BENEFITS

2023/24 CO2 emissions g/km		% of list pricetaxed
0		2
1-50
Electric range	130 or more	2
	70 – 129	5
	40 – 69	8
	30 – 39	12
	under 30	14
51-54		15
For every extra 5		+1
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 CO2 figure does not end in a 5 or 0 round down to the nearest 5 or 0.

2023/2024
Car fuel benefit	£27,800
Van benefit	£3,960
Van fuel benefit	£757

NATIONAL INSURANCE

2023/24 Class 1 (employed) rates

Employee Earnings per week	%	Employer Earnings per week	%
Up to £242	Nil	Up to £175	Nil
£242.01 – £967	12	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 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

SELECTED RATES

Weekly benefit	2023/24	2022/23
New State Pension	203.85	185.15
Old State Pension	156.20	141.85
Statutory pay standard rates – average weekly earnings of £123 (£123) or over
Sick Pay	109.40	99.35
Maternity/Adoption Pay	172.48	156.66
Shared Parental Pay	172.48	156.66
Paternity Pay	172.48	156.66

National Living Wage and National Minimum Wage

Age	NLW	21-22	18-20	16-17	Apprentices
From 1 April 2023	£10.42	£10.18	£7.49	£5.28	£5.28

Applies to apprentices under 19, or 19 and over in the first year of apprenticeship. NLW applies to those aged 23 and over.

TAX RELIEFS FOR INDIVIDUALS

2023/24 and 2022/23 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.

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.

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

CORPORATION TAX

Year to 31.3.24	Profit band £	Rate %
Small profit rate	0 – 50,000	19
Marginal rate	50,0001 – 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. 

CAPITAL ALLOWANCES

First Year Allowance (FYA) on certain plant, machinery and cars of 0g/km.	100%
Corporation tax FYA (‘full expensing’) on certain new, unused plant and machinery from 1 April 2013	100%
Corporation tax FYA on on new, unused long-life assets, integral features of buildings, etc from 1 April 2013	50%
Annual Investment Allowance (AIA) £1,000,000 (£200,000 from 1 April 2023) Excludes cars
Writing Down Allowance Long-life assets, integral features of buildings, cars over 50g/kg	6%
Other plant and machinery	18%
Structures and Buildings Allowance	3%

PENSIONS

	2023/24	2022/23
Lifetime Allowance (LA) limit	No LA charge	£1,073,100
Annual Allowance limit	£60,000	£40,000
Money Purchase Annual Allowance	£10,000	£4,000

VALUE ADDED TAX

	From 1/4/23	From 1/4/22
Standard rate	20%	20%
Reduced rate	5%	5%
Annual Registration Limit	£85,000	£85,000
Annual Deregistration Limit	£83,000	£83,000

PROPERTY TAXES

Across the whole of the UK, residential rates may be increased by 3% (4% in Wales and 6% in Scotland) where further residential properties are acquired.

Stamp Duty Land Tax

Land and buildings in England and N. Ireland

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
925,000 – 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

Land and Buildings Transaction Tax

Land and buildings in Scotland.

Residential Band £	Rate %	Non-residential Band £	Rate %
0 – 145,000	0	0 – 150,000	0
145,001 – 250,000	2	150,001 – 250,000	1
250,001 – 325,000	5	Over 250,000	5
325,001 – 750,000	10
Over 750,000	12

First-Time Buyer relief may apply on the first £175,000 of residential purchases.

Land Transaction Tax

Land and buildings in Wales.

Residential Band £	Rate %	Non-residential Band £	Rate %
0 – 225,000	0	0 – 225,000	0
225,001 – 400,000	65	225,001 – 250,000	1
400,001 – 750,000	7.5	250,001 – 1,000,000	5
750,001 – 1,500,000	10	Over 1,000,000	6
Over 1,500,000	12