|
Inheritance Tax |
2024-25 |
2023-24 |
|
Nil rate band for individuals* |
£325,000 |
£325,000 |
|
Thereafter – lifetime gifts** |
20% |
20% |
|
– lower rate on death*** |
36% |
36% |
|
– on death |
40% |
40% |
|
Residence |
£175,000 |
£175,000 |
* Unused nil rate band can be used by surviving spouse or civil partner. This is currently frozen until April 2028.
** Increased to 40%, subject to tapering relief, on gifts made between 3 and 7 years pre death. Certain lifetime gifts are exempt. Special rules for business property.
*** A lower rate applies where 10% or more of the net estate is left to charity.
**** The inheritance tax main residence nil-rate band (MRNRB) was introduced in April 2017. The MRNRB allows for a £175,000 per person transferable allowance for married couples and civil partners when their main residence is passed down
to children after their death. The MRNRB is in addition to the existing £325,000 inheritance tax threshold.
Net estates over £2,000,000 have RNRB reduced by £1 for every £2 and lost when estate is £2,350,000.
|
Years before death |
0-3 |
3-4 |
4-5 |
5-6 |
6-7 |
|
% of death charge |
100% |
80% |
60% |
40% |
20% |
|
Recurring annual gifts out of surplus income |
|
|
Annual gifts out of capital (with one year carry forward if unused) |
£3,000 |
|
Small gifts (per recipient) |
£250 |
|
Parental gift on marriage |
£5,000 |
|
Grandparent or party to marriage |
£2,500 |
|
Other gifts on marriage (per donor) |
£1,000 |
Business Property Relief
|
Shares in unquoted companies (including USM/AIM stocks) |
100% |
|
– shareholding up to 50% |
none |
|
– shareholding over 50% |
50% |
|
Unincorporated business or interest in a business |
100% |
|
Land, buildings, plant and machinery used in the deceased’s business/company |
50% |
|
2024-25 |
2023-24 |
|
|
Lower weekly earnings limit, primary Class 1 |
£123 |
£123 |
|
Upper weekly earnings limit, primary Class 1 |
£967 |
£967 |
|
Primary weekly earnings threshold. |
£242 |
£242 |
|
Secondary weekly earnings threshold |
£175 |
£175 |
|
Employees’ primary Class 1 rate between primary earnings threshold and upper earnings limit |
8.00% |
10.00% 6 Jan 2024 to 5 Apr 2024 12.00% 6 Apr 2023 to 5 Jan 2024 |
|
Employees’ primary Class 1 rate above upper earnings limit |
2.00% |
2.00% |
|
Married women’s reduced rate between primary earnings threshold and upper earnings limit |
1.85% |
5.85% |
|
Married women’s rate above upper earnings limit |
2.00% |
2.00% |
|
Employers’ secondary Class 1 rate above secondary earnings threshold |
13.80% |
13.80% |
|
Class 2 weekly rate this NIC will effectively be abolished from 6 April 2024, saving a self- employed individual £179.40 per annum. |
N/A |
£3.15 |
|
Class 2 small earnings exception Please note, if your profits fall less than £6,725 or you make a loss, you may need to pay Class 2 NICS on a voluntary basis to maintain your state benefit entitlement. |
£6,725 peryear |
|
|
Special Class 2 weekly rate – for fishermen This NIC will effectively be abolished from 6 April 2024, saving a self employed individual £213.20 per annum. Please note, if your profits fall less that £6,725 or you make a loss, you may need to pay Class 2 NICS on a voluntary basis to maintain your state benefit entitlement. Please see next box for exclusion. |
£3.80 |
|
|
Special Class 2 weekly rate for volunteer development workers This NIC will effectively be abolished from 6 April 2024, saving a self-employed individual £319.80 per annum. Please see, if your profits fall less than £6,725 or you make a loss, you may need to pay Class 2 NICS on a voluntary basis to maintain your state benefit entitlement. |
£6.15 |
|
|
Class 3 voluntary weekly rate |
£17.45 |
£15.85 |
|
Class 4 lower Profits limit |
£12,570 per year |
£12,570 per year |
|
Class 4 upper Profits limit |
£50,270 per year |
£50,270 per year |
|
Class 4 rate between lower profits limit and upper profits limit |
6.00% |
9.00% |
|
Class 4 rate above upper profits limit |
2.00% |
2.00% |
A NI tax free allowance of £5,000 for 2024/25 (2023/24 – £5,000) is available to offset against employers’ Class 1 secondary NICs subject to certain
restrictions.
No employers’ contributions are payable in respect of weekly earnings up to £967 paid to employees under 21 nor for qualifying apprentices aged under 25.
|
2024-25 |
2023-24 |
|
|
Annual exempt amount |
||
|
Individuals |
£3,000 |
£6,000 |
|
Trusts |
£1,500 |
£3,000 |
|
Rates |
||
|
Standard rate taxpayers |
10% |
10% |
|
Higher rate taxpayers / Trustees |
20% |
20% |
|
Limit for gains subject to Business Assets Disposal Relief |
£1,000,000 |
£,1,000,000 |
|
Business Assets Disposal Relief rate |
10% |
10% |
|
Investors’ relief lifetime limit |
£10,000,000 |
£10,000,000 |
|
Investors’ relief rate |
10% |
10% |
* There is an 8% surcharge on the sale of chargeable residential property and carried interest (the share of profits or gains that is paid to asset managers). Please note this 8% surcharge will reduce to 4% for higher rate taxpayers from 6 April 2024 – therefore 24% will apply instead of 28%. The 18% remains for basic taxpayers.).
|
2024-25 |
2023-24 |
|
|
Basic element – maximum |
£2,435 |
£2,280 |
|
Childcare element 70% of eligible costs up to £175 per week for one child, £300 for two or more children. |
||
|
Child Tax Credits |
2024-25 |
2023-24 |
|
Child element per child – maximum |
£3,455 |
£3,235 |
|
Family element |
£545 |
£545 |
|
From 6 April 2024, if only the child tax credit is claimed, the threshold is £19,995 p.a. |
||
|
Pension Contributions* |
2024-25 |
2023-24 |
|
Lifetime allowance |
Abolished w/e 6 April 2023 |
Abolished w/e 6 April 2023 |
|
Maximum annual contribution |
£60,000 |
£60,000 |
|
Tax on excess |
Marginal rate |
Marginal rate |
|
Normal minimum pension age |
55 |
55 |
|
|
||
|
Old State pension – per week** |
2024-25 |
2023-24 |
|
Single person |
£169.50 |
£156.20 |
|
Addition for wife if non-contributor |
£93.60 |
£93.60 |
|
|
||
|
2024-25 |
2023-24 |
|
|
Single person |
£221.20 |
£203.85 |
*The annual allowance is tapered for taxpayers whose income exceeds £200,000. The allowance is reduced by £1 for every £2 that an individual’s income exceeds £200,000, down to a minimum of £10,000 for individuals with an income of £260.000 or more.
**Retirees that reached the State Pension age before 6 April 2016, will continue to receive the old state pension and not the new state pension.
|
Bands |
2024-25 |
2023-24 |
|
Savings starting rate – 0%* |
£0 – £5,000 |
£0 – £5,000 |
|
Basic rate 20%** |
£0-£37,700 |
£0-£37,700 |
|
Higher rate 40% |
£37,701– £125,140 |
£37,701– £125,140 |
|
Additional rate 45% |
Over £125,140 |
Over £125,140 |
|
|
||
|
Scottish rates |
2024-25 |
2023-24 |
|
Starter rate 19% on taxable income |
£12,571 – £14,876 |
£12,571* – £14,732 |
|
Basic rate 20% |
£14,877 – £26,561 |
£14,733 – £25,688 |
|
Intermediate rate – 21% |
£26,562 – £43,662 |
£25,689 – £43,662 |
|
Higher rate – 42% |
£43,663 – £75,000 |
£43,663 – £125,140 |
|
Advanced – 45% |
£75,001 – £125,140 |
N/A |
|
Top rate – 47% |
N/A |
Above £125,140** |
|
Top rate – 48% |
Above £125,140 |
N/A |
*Assumes individuals are in receipt of the standard Personal Allowance.
**Those earning more than £100,000 will see their Personal Allowance reduced by £1 for every £2 earned over £100,000
|
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% |
|
Personal savings allowance |
2024-25 |
2023-24 |
|
– basic rate taxpayers |
£1,000 |
£1,000 |
|
– higher rate taxpayers |
£500 |
£500 |
|
Reliefs |
2024-25 |
2023-24 |
|
Personal allowance |
£12,570 |
£12,570 |
|
Registered blind person’s allowance |
£2,870 |
£2,520 |
|
Income limit for personal allowance* |
£100,000 |
£100,000 |
* The personal allowance is gradually withdrawn by £1 for every £2 of income over £100,000.
|
Married couple allowance – tax relief given at 10% |
2024-25 |
2023-24 |
|
– Born before 6 April 1935 |
£11,080 |
£10,375 |
|
– Minimum amount* |
£4,280 |
£4,010 |
|
– Income limit |
£37,000 |
£34,600 |
|
– Marriage allowance* |
£1,260 |
£1,260 |
* Since 2021/22 a taxpayer can transfer up to £1260 of their unused personal allowance to a spouse or civil partner who is not a higher rate taxpayer.
|
High Income Child Benefit Charge* |
2024-25 |
2023-24 |
|
on income over |
£60,000 |
£50,000 |
* From 6 April 2024, the tax charge is levied at the rate of 1% of the full child benefit award for each £100 that income exceeds £60,000, up to a maximum of 100% of the child benefit claimed. The child benefit is withdrawn in full once an individual’s income exceeds £80,000.
Taxpayers can choose whether to continue receiving child benefit and pay the tax charge or may opt out of receiving the child benefit.
Stamp Duty and Annual Tax on Enveloped Dwellings
Shares and securities rate 0.5%
The annual tax on Enveloped Dwellings (ATED) is payable by certain non-natural persons that own interests in dwellings valued at more than £500,000.
Stamp Duty and Stamp Duty Land Tax (SDLT)
Property in England, Wales and N. Ireland
|
Residential Property |
|
|
Zero |
£0 – £250,000 |
|
5% |
£250,001 – £925,000 |
|
10% |
£925,001 – £1,500,000 |
|
12% |
Over £1,500,000 |
SDLT on non-residential and mixed-use properties.
|
Rate |
Non-Residential Property |
|
Zero |
£0 – £150,000 |
|
2% |
£150,001 – £250,000 |
|
5% |
Over £250,000 |
These rates are applied on a graduated basis with the portion of the purchase price within each tier charged at the applicable rate.
15% is applied to residential properties held in a ‘corporate envelope’ costing over £500,000.
There is a higher rate of SDLT that applies to purchases of additional residential property such as buy to let and second homes. The rate is 3% higher than the current SDLT rates and applies to the purchase of additional residential properties valued at £40,000 and above.
Scotland: Land & buildings transaction tax (SLBTT)
Property in Scotland
|
Residential Property |
|
|
Zero* |
£0 – £145,000 |
|
2% |
£145,001 – £250,000 |
|
5% |
£250,001 – £325,000 |
|
10% |
£325,001 – £750,000 |
|
12% |
Over £750,000 |
Non-Residential and mixed-use properties.
|
Rate |
Non-Residential Property |
|
Zero |
£0 – £150,000 |
|
1% |
£150,001 – £250,000 |
|
5% |
Over £250,000 |
Wales – Land Transaction Tax (LTT)
Property in Wales
|
Rate |
Residential Property |
|
Zero |
£0 – £225,000 |
|
6% |
£225,001 – £400,000 |
|
7.5% |
£400,001 – £750,000 |
|
10% |
£750,001 – £1,500,000 |
|
12% |
Over £1,500,000 |
Non-Residential and mixed-use properties.
|
Rate |
Non-Residential Property |
|
Zero |
£0 – £225,000 |
|
1% |
£225,001 – £250,000 |
|
5% |
£250,001 – £1,000,000 |
|
6% |
Over £1,000,000 |
These rates are applied on a graduated basis with the portion of the purchase price within each tier charged at the applicable rate.
There are currently no further measures specifically targeting first-time buyers in Wales.
There is a WLTT higher rate supplement of 3% on purchases of additional residential properties costing £40,000 or more.
The National Minimum Wage and Living Wage
|
National Living Wage |
2024-25 |
2023-24 |
|
Age 23 & over |
£11.44 p.h. |
£10.42 p.h. |
|
National Minimum Wage |
2024-25 |
2023-24 |
|
Aged 23+ |
£10.42 p.h. |
|
|
Aged 21 and over |
£11.44 p.h. |
|
|
Aged 21 to 22 |
£10.18 p.h. |
|
|
Aged 18 to 20 |
£8.60 p.h. |
£7.49 p.h. |
|
Aged 16 and 17 |
£6.40 p.h. |
£5.28 p.h. |
|
Apprentice rate |
£6.40 p.h. |
£5.28 p.h. |
|
Rates and Limits |
2024-25 |
2023-24 |
|
Standard rate |
20% |
20% |
|
Reduced rate |
5% |
5% |
|
Zero rate |
0% |
0% |
|
Annual registration limit (from 1 April 2024) |
£90,000 |
£85,000 |
|
Annual deregistration limit (from 1 April 2024) |
£88,000 |
£83,000 |
|
VAT Cash accounting scheme threshold |
£1,350,000 |
£1,350,000 |
|
VAT Annual accounting scheme threshold |
£1,350,000 |
£1,350,000 |
|
2024-25 |
2023-24 |
|
|
Small profits rate (0 – 50,000) |
19% |
19% |
|
Marginal rate (50,001 – 250,000) |
26.5% |
26.5% |
|
Main rate (Over 250,000) |
25% |
25% |
Marginal relief fraction (3/200)
Corporation tax rates are set for each Financial Year. A Financial Year runs from 1 April to the following 31 March.
If the accounting period of a company straddles the 31 March, the profits are apportioned on a time basis to each Financial Year.
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.
For each tax year add 4% for diesel cars up to a maximum of 37%. Cars that meet the Real Driving Emissions Step 2 (RDE2) standard are exempt.
|
Company Car Tax BIK Rates – Cars registered from 6th April 2020 |
||||
|
% of |
2024/25 |
2023/24 |
2022/23 |
2021/22 |
|
1 |
N/A |
N/A |
N/A |
0-50 |
|
2 |
0-50 |
0-50 |
0-50 |
N/A |
|
3 |
N/A |
N/A |
N/A |
N/A |
|
4 |
N/A |
N/A |
N/A |
1-50 |
|
5 |
1-50 |
1-50 |
1-50 |
N/A |
|
6 |
N/A |
N/A |
N/A |
N/A |
|
7 |
N/A |
N/A |
N/A |
1-50 |
|
8 |
1-50 |
1-50 |
1-50 |
N/A |
|
10 |
N/A |
N/A |
N/A |
N/A |
|
11 |
N/A |
N/A |
N/A |
1-50 |
|
12 |
1-50 |
1-50 |
1-50 |
N/A |
|
13 |
N/A |
N/A |
N/A |
1-50 |
|
14 |
1-50 |
1-50 |
1-50 |
51-54 |
|
15 |
51-54 |
51-54 |
55-54 |
55-59 |
|
16 |
55-59 |
55-59 |
55-59 |
60-64 |
|
17 |
60-64 |
60-64 |
60-64 |
65-69 |
|
18 |
65-69 |
65-69 |
65-69 |
70-74 |
|
19 |
70-74 |
70-74 |
70-74 |
75-79 |
|
20 |
75-79 |
75-79 |
75-79 |
80-84 |
|
21 |
80-84 |
80-84 |
80-84 |
85-89 |
|
22 |
85-89 |
85-89 |
85-89 |
90-94 |
|
23 |
90-94 |
90-94 |
90-94 |
95-99 |
|
24 |
95-99 |
95-99 |
95-99 |
100-104 |
|
25 |
100-104 |
100-104 |
100-104 |
105-109 |
|
26 |
105-109 |
105-109 |
105-109 |
110-114 |
|
27 |
110-114 |
110-114 |
110-114 |
115-119 |
|
28 |
115-119 |
115-119 |
115-119 |
120-124 |
|
29 |
120-124 |
120-124 |
120-124 |
125-129 |
|
30 |
125-129 |
125-129 |
125-129 |
130-134 |
|
31 |
130-134 |
130-134 |
130-134 |
135-139 |
|
32 |
135-139 |
135-139 |
135-139 |
140-144 |
|
33 |
140-144 |
140-144 |
140-144 |
145-149 |
|
34 |
145-149 |
145-149 |
145-149 |
150-154 |
|
35 |
150-154 |
150-154 |
150-154 |
155-159 |
|
36 |
155-159 |
155-159 |
155-159 |
160-164 |
|
37 |
160+ |
160+ |
160+ |
160+ |
For each tax year add 4% for diesel cars up to a maximum of 37%. Cars that meet the Real Driving Emissions Step 2 (RDE2) standard are exempt.
|
Cars & vans |
Rate per mile 2024-25 |
|
– up to 10,000 miles |
45p |
|
– over 10,000 miles |
25p |
|
Motorcycles |
24p |
|
Bicycles |
20p |
These rates represent the maximum tax free mileage allowances for employees using their own vehicles for business. Any excess is taxable. If the employee receives less than the statutory rate, tax relief can be claimed on the difference.
|
2024-25 |
2023-24 |
|
|
– Main writing down allowance |
18% |
18% |
|
– Long life assets, integral fixtures |
6% |
6% |
|
– First year allowances (certain environmentally efficient products) |
100% FYA Or 50% FYA for special rate expenditure |
100% FYA Or 50% FYA for special rate |
The Annual investment Allowance of £1,000,000 continues.
|
Cars |
2024-25 |
2023-24 |
|
-CO2 emissions |
||
|
0 g/km or below |
100% FYA |
100% FYA |
|
1 – 50 g/km |
18% WDA – Main pool |
18% WDA – Main pool |
|
Above 50 |
6% WDA – Special pool |
6% WDA – Special pool |
|
Tax Favoured Investments |
2024-25 |
2023-24 |
|
ISA limit |
£20,000 |
£20,000 |
|
Lifetime ISA |
£4,000 |
£4,000 |
|
Junior ISA |
£9,000 |
£9,000 |
|
Venture Capital Trusts Income Tax relief of up to 30% on investments up to £200,000. |
||
|
Enterprise Investment Scheme Income Tax relief of up to 30% on investments up to £1 million £2 million if at least £1 million of that is invested in knowledge-intensive companies |
||
|
Seed Enterprise Investment Scheme Income Tax relief of 50% on maximum investment of £200,000. |
||
|
Social Investment Tax Relief Income Tax relief at 30% of the amount invested plus Capital Gains Tax relief. Maximum investment of £1,000,000. |
||
