Income Tax Rates
Non-savings, non-dividend income – England, Wales, NI
| 2022/23 | Band | 2023/24 | Band |
| Basic rate: 20% | £0 – £37,700 | Basic rate: 20% | £0 – £37,700 |
| Higher rate: 40% | £37,701 – £150,000 | Higher rate: 40% | £37,701 – £125,140 |
| Additional rate: 45% | Over £150,000 | Additional rate: 45% | Over £125,140 |
Non-savings, non-dividend income – Scotland
| 2022/23 | Band | 2023/24 | Band |
| Starter rate: 19% | £0 – £2,162 | Starter rate: 19% | £0 – £2,162 |
| Basic rate: 20% | £2,163 – £13,118 | Basic rate: 20% | £2,163 – £13,118 |
| Intermediate rate: 21% | £13,119 – £31,092 | Intermediate rate: 21% | £13,119 – £31,092 |
| Higher rate: 41% | £31,093 – £150,000 | Higher rate: 42% | £31,093 – £125,140 |
| Top rate: 46% | Over £150,000 | Top rate: 47% | Over £125,140 |
Savings and dividend income – UK
| 2022/23 | 2023/24 | |
| Savings income – basic rate | 20%* | 20%* |
| Savings income – higher rate | 40% | 40% |
| Savings income – additional rate | 45% | 45% |
| Dividends – basic rate | 8.75% | 8.75% |
| Dividends – higher rate | 33.75% | 33.75% |
| Dividends – additional rate | 39.35% | 39.35% |
*0% starting rate on up to £5,000 of savings income for 2022/23 & 2023/24. Not available if non-savings/non-dividend income exceeds this limit.
Trusts Standard Rate Band £1,000
Income Tax Allowances – UK
| Allowances | 2022/23 | 2023/24 | |
| Personal allowance (PA)* | £12,570 | £12,570 | |
| Married couple’s allowance (MCA) ø | Spouse/civil partner born before 6.4.1935 | £9,415 | £10,375 |
| Minimum MCA | £3,640 | £4,010 | |
| Blind person’s allowance | £2,600 | £2,870 | |
| Marriage allowance** | £1,260 | £1,260 | |
| PA income limit | £100,000 | £100,000 | |
| MCA income limit | £31,400 | £34,600 | |
| Dividend allowance | £2,000 | £1,000 | |
| Personal savings allowance | Basic rate tax taxpayers | £1,000 | £1,000 |
| Higher rate taxpayers | £500 | £500 | |
* PA reduces by £1 for every £2 adjusted net income exceeds PA income limit.
ø MCA relief at 10% if at least one spouse/civil partner born before 6.4.1935. Reduces by £1 for every £2 adjusted net income exceeds MCA income limit, but not below minimum.
**One spouse/civil partner can transfer up to 10% of their PA to the other, provided neither is liable to tax above the basic rate.
Value Added Tax
| From 1.4.2022 | From 1.4.2023 | |
| Standard rate | 20% | 20% |
| Registration level | £85,000 | £85,000 |
| De-registration level | £83,000 | £83,000 |
Corporation Tax
| Year to 31.3.2023 | Year to 31.3.2024 | |
| All taxable profits | 19% | n/a |
| Small profit rate – taxable profits up to £50,000 | n/a | 19% |
| Main rate – taxable profits over £250,000 | n/a | 25% |
| Marginal relief fraction | n/a | 3/200 |
Capital Gains Tax
| Exemptions | 2022/23 | 2023/24 |
| Individuals & LPRs* | £12,300 | £6,000 |
| Trusts | £6,150 | £3,000 |
*Legal personal representatives (LPRs) are entitled to the annual exemption in the tax year of death and the next two tax years.
| Rates | 2022/23 | 2023/24 |
| Individuals’ gains:
• within available basic rate band • on the balance |
10%* 20%* |
10%* 20%* |
| Trustees’ & LPRs’ gains | 20%* | 20%* |
| Business asset disposal relief | • 10% on the first £1m lifetime gains
• 10%/20%* on the balance |
• 10% on the first £1m lifetime gains
• 10%/20%* on the balance |
| Investors’ relief | • 10% on the first £10m lifetime gains
• 10%/20%* on the balance |
• 10% on the first £10m lifetime gains
• 10%/20%* on the balance |
| * 18% & 28% rates apply to carried interest & residential property not covered by principal private residence relief. | ||
| Companies’ gains charged at corporation tax rate. Indexation allowance is frozen for disposals from 1.1.2018. | ||
Inheritance Tax
| Chargeable transfers | 2022/23 | 2023/24 |
| Standard nil-rate band | £325,000 | £325,000 |
| Residence nil-rate band (available only on death, subject to conditions) | £175,000 | £175,000 |
| Tax on excess value of chargeable transfer on death and lifetime transfers made within seven years of death | 40% | 40% |
| Tax on excess value for chargeable transfers on death where 10% or more of net estate left to charity | 36% | 36% |
| Tax on excess value for other chargeable lifetime transfers | 20% | 20% |
| Reduced tax charge on gifts within seven years before death (taper relief) | |||||
| Years before death | 0–3 | 3–4 | 4–5 | 5–6 | 6–7 |
| % of death charge | 100 | 80 | 60 | 40 | 20 |
| Main exemptions | ||
| Gifts to charities | Unlimited | |
| Gifts between UK domiciled spouses | Unlimited | |
| Annual | £3,000 | |
| Small gifts to any one person | £250 | |
|
Gifts on marriage/civil partnership from: |
Parent | £5,000 |
| Party to marriage/civil partnership or grandparent | £2,500 | |
| Other | £1,000 | |
Pensions – Maximum Contributions Limit
The maximum amount of contributions on which a member can claim tax relief in any tax year is the greater of:
- the ‘basic amount’ – currently £3,600 gross, and
- the amount of the individual’s relevant UK earnings that are chargeable to income tax for the year.
Lifetime Allowance
| Tax Year | Amount |
| 2020/21 to 2023/24 | £1,073,100 |
Lifetime Allowance Charge: For tax years up to 2022/23, 55% on excess paid as a lump sum and 25% on excess designated for drawdown, annuity or scheme pension. In 2023/24, the 25% and 55% LTA charges don’t apply and excess lump sums are taxed at the member’s marginal rate of income tax.
Annual Allowance
| Tax Year | AA Amount | MPAA Amount |
| 2017/18 to 2022/23 | £40,000# | £4,000 |
| 2023/24 | £60,000# | £10,000 |
Annual Allowance Charge: marginal income tax rate on excess, subject to a minimum of 20%.
Carry forward of up to three years unused annual allowance available.
Money Purchase Annual Allowance (MPAA): applies with no carry forward to money purchase pensions once flexible pension income taken.
# Tapered annual allowance: for 2020/21 to 2022/23, tapered by £1 for every £2 of ʻadjusted incomeʼ over £240,000 to a minimum of £4,000 if ʻthreshold incomeʼ is over £200,000.
For 2023/24, tapered by £1 for every £2 of ‘adjusted income’ over
£260,000 to a minimum of £10,000 if ‘threshold income’ is over £200,000.
ISA Limits
| Overall Limit | |
| ISA 2022/23* | £20,000 |
| ISA 2023/24* | £20,000 |
| Junior ISA / Child Trust Fund 2022/23 | £9,000 |
| Junior ISA / Child Trust Fund 2023/24 | £9,000 |
*Eligible savers can contribute up to £4,000 of the overall ISA limit to a Lifetime ISA.
The spouse/civil partner of deceased ISA saver has an additional ISA allowance equal to the value of the deceased’s ISA(s) at the date of death.