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Our Tax Rate Centre includes a summary of the most important tax rates and allowances for the tax year 2024/2025.
It is not intended to cover every aspect of this year's tax figures and is designed to act as overview only. No liability is accepted for any action taken or refrained from in consequence of its contents. Advice should always be sought from a professional.
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| Band & Rates | 2024 / 2025 | 2023 / 2024 |
|---|---|---|
| Basic Rate - income up to | £37,700 | £37,700 |
| Main Basic Rate | 20% | 20% |
| Savings Basic Rate | 20% | 20% |
| Default Basic Rate | 20% | 20% |
| Starting rate for savings income | 0% | 0% |
| Starting Rate limit (saving income) | £5,000 | £5,000 |
| Dividend ordinary rate – for dividends otherwise taxable at the basic rate | 8.75% | 8.75% |
| Higher Rate - income over | £37,700 | £37,700 |
| Main Higher Rate | 40% | 40% |
| Savings Higher Rate | 40% | 40% |
| Default Higher Rate | 40% | 40% |
| Dividend upper rate – for dividends otherwise taxable at the higher rate | 33.75% | 33.75% |
| Additional Rate - income over | £125,140 | £125,140 |
| Main Additional Rate | 45% | 45% |
| Savings Additional Rate | 45% | 45% |
| Default Additional Rate | 45% | 45% |
| Dividend additional rate – for dividends otherwise taxable at the additional rate | 39.35% | 39.35% |
| Trustee's Income | ||
| Standard rate on first £1,000 of income which would otherwise be taxable at the special rates for trustees | Up to 20%, depends on the type of income | Up to 20%, depends on the type of income |
| Trust Rate | 45% | 45% |
| Dividend Trust Rate | 39.35% | 39.35% |
| Income Tax Allowances | 2024 / 2025 | 2023 / 2024 |
|---|---|---|
| Personal Allowance | £12,570 | £12,570 |
| Income limit for Personal Allowance | £100,000 | £100,000 |
| Income limit for married couples’ allowance | £37,000 | £34,600 |
| Maximum Married couple’s allowance for those born before 6 April 1935 | £11,080 | £10,375 |
| Minimum Married couple’s allowance for those born before 6 April 1935 | £4,280 | £4,010 |
| Blind persons allowance | £3,070 | £2,870 |
| Rent a room relief allowance | £7,500 | £7,500 |
| Transferrable Marriage Allowance | £1,260 | £1,260 |
| Dividend Allowance | £500 | £1,000 |
| Personal savings allowance for basic rate taxpayer | £1,000 | £1,000 |
| Personal savings allowance for higher rate taxpayer | £500 | £500 |
| National Minimum Wage (Category of worker) | Hourly Rate |
|---|---|
| Aged 21 and above (national living wage rate | £11.44 |
| Aged 18 to 20 inclusive | £8.60 |
| Under 18 (but above compulsory school leaving age) | £6.40 |
| Apprentices aged under 19 | £6.40 |
| Student Loan Recovery (Rate of threshold) | Figures to use 2024/2025 |
|---|---|
| Employee earnings threshold for Plan1 1 | £24,990 per year |
| £2,082.50 per month | |
| £480.58 per week | |
| Employee earnings threshold for Plan2 2 | £27,295 per year |
| £2,274.58 per month | |
| £524.90 per week | |
| Employee earnings threshold for Plan 4 | £27,660 per year |
| £2,305 per month | |
| £531.92 per week | |
| Student loan deductions | 9% |
| Employee earnings threshold for Postgraduate Loan | £21,000 per year |
| £1,750 per month | |
| £403.84 per week | |
| Postgraduate loan deductions | 6% |
| Class 1 NICs: Employee and Employer rates and thresholds per annum | 2024 / 2025 | 2023 / 2024 |
|---|---|---|
| Lower Earnings Limit (LEL) | £6,396 | £6,396 |
| Primary Threshold (PT) | £12,570 | £12,570 |
| Secondary Threshold (ST) | £9,100 | £9,100 |
| Freeport Upper Secondary Threshold | £25,000 | £25,000 |
| Upper Earnings (UEL) | £50,270 | £50,270 |
| Upper Secondary Threshold for U21’s | £50,270 | £50,270 |
| Apprentice Upper Secondary Threshold (AUST) for under 25s | £50,270 | £50,270 |
| Employment Allowance (per employer) | £5,000 | £5,000 |
| Employee's (Primary) Class 1 NIC Rates | ||
| Below LEL | N/A | N/A |
| LEL - PT | 0% | 0% |
| PT - UEL | 8% | 13.25% / 12% |
| Above UEL | 2% | 3.25% / 2% |
| Employer's (Secondary) Class 1 NIC Rates | ||
| Above Secondary Threshold | 13.80% | 13.80% |
| Above AUST | 13.80% | 13.80% |
| Class 2 NICs: Self-employed rates and thresholds per week | 2024 / 2025 | 2023 / 2024 |
|---|---|---|
| Small Profits Threshold (SPT) | £6,725 | £6,725 |
| Annual profits | ||
| Below SPT | £3.45 (Voluntary) | £3.15 (Voluntary) |
| Above SPT | £0 | £3.15 |
| Special Class 2 rate for share fishermen | £0 | £4.10 |
| Special Class 2 rate for volunteer development workers | £0 | £6.15 |
| Class 3 NICs: Other rates and thresholds per week | 2024 / 2025 | 2023 / 2024 |
|---|---|---|
| Voluntary contributions | £17.45 | £17.45 |
| Class 4 NICs: Self-employed rates and thresholds per year | 2024 / 2025 | 2023 / 2024 |
|---|---|---|
| Lower Profits Limit (LPL) | £12,570 | £12,570 |
| Upper Profits Limit (UPL) | £50,270 | £50,270 |
| Below LPL | 0% | 0% |
| LPL to UPL | 6% | 9% |
| Above UPL | 2% | 2% |
Car Benefits
The taxable benefit is calculated as a percentage of the list price of the car, on the day before it was first registered, plus certain accessories. This percentage depends upon the rate at which the car emits carbon dioxide (CO2), and the fuel type.
| Income Tax Allowances | 2024 / 2025 | 2023 / 2024 |
|---|---|---|
| Car fuel benefit charge multiplier | £27,800 | £27,800 |
| Van fuel benefit charge | £757 | £757 |
| Van benefit charge | £3,960 | £3,960 |
Pension
The basic and new State Pensions was uprated in line with CPI inflation in 2023/24. The pension rates for 2024/25 will be:
• For those who reach State Pension age on or after April 6: £221.20 up from £203.85
• The basic state pension: £169.50 per week up from £156.20
| Basic state pension | 20234/ 2025 | 2023 / 2024 |
|---|---|---|
| Single person per year | £8,814.00 | £8,122.40 |
| Spouses/civil partners per year | £5,280.60 | £4,867.20 |
| Maximum age for tax relief | 74 | 74 |
| Minimum age for taking benefits | 55 | 55 |
| Lifetime allowance charge – lump sum paid | % | 55% |
| Lifetime allowance | n/a | |
| Annual allowance | £60,000 | £60,000 |
| Maximum tax-free lump sum | 25% | 25% |
| Money Purchase Annual Allowance | £10,000 | £10,000 |
| Threshold Income Limit | £200,000 | £200,000 |
| Tapered Annual Allowance (applies when an individual has ‘adjusted income’ over this amount provided the ‘threshold income’ test is met) | £260,000 | £260,000 |
| Lumpsum allowance | £268,275 | 0 |
| Lumpsum and death benefit allowanace | £1,073,100 | |
| Group | 2024 / 2025 | 2023 / 2024 |
|---|---|---|
| Main rates for individuals | 10% / 20% | 10% / 20% |
| Rates for individuals (for gains on residential property not eligible for Private Residence Relief) | 18 % / 24% | 18 % / 28% |
| Rates for on gains on ( carried interest) | 18 % / 28% | 18 % / 28% |
| Main rate for trustees and personal representatives | 20% | 20% |
| Rate for trustees and personal representatives (for gains on residential property not eligible for Private Residence Relief) | 24% | 28% |
| Rate for personal representatives for gains on carried interest | 28% | 28% |
| Annual exempt amount (AEA) for individuals and personal representatives | £3,000 | £6,000 |
| AEA for most trustees | 1,500 | £3,000 |
| Rate on gains subject to business Asset Disposal Relief | 10% | 10% |
| Rate on gains subject to investors’ relief | 10% | 10% |
| Business Asset Disposal Relief (previously known as Entrepreneurs’ relief): lifetime limit on gains for entrepreneurs | £1,000,000 | £1,000,000 |
| Investors’ relief: separate lifetime limit on gains for external investors | £10,000,000 | £10,000,000 |
| Financial Year 2022 to 2022 | Financial Year 2023 to 2023 | Financial Year 2024 to 2024 | |
|---|---|---|---|
| Plant and machinery: main rate expenditure | 18% | 18% | 18% |
| Plant and machinery: special rate expenditure | 6% | 6% | 6% |
| Structures and Buildings Allowances(SBA) | 3% | 3% | 3% |
| Structures and Buildings Allowances(SBA)-Investment zone | 10% | 10% | 10% |
| Annual Investment Allowance | £1million | £1million | £1million |
| First Year Allowance | 100% | 100% | 100% |
| Full Expensing: Main rate expenditures | 0% | 0% | 100% |
| Full Expensing: Special rate expenditure | 0% | 0% | 50% |
| R&D tax credits SME scheme | 230% | 230% | 230% |
| R&D SME payable credit | 14.50% | 14.50% | 14.50% |
| R&D Expenditure Credit | 13% | 13% | 13% |
| Patent Box | 10% | 10% | 10% |
| Film tax relief | 25% | 25% | 25% |
| High-end TV tax relief | 25% | 25% | 25% |
| Videogames tax relief | 25% | 25% | 25% |
| Open ended investment companies and authorised unit trusts | 20% | 20% | 20% |
| Main rate- for profits above £250,000 | 19% | 25% | 25% |
| Small profit rate- Companies with profits of £50,000 or less. | 19% | 19% | 19% |
| Small profit limit | £50,000 | £50,000 | |
| Marginal rate limit | £250,000 | £250,000 | |
| Marginal relief fraction | 3/200 | 3/200 |
| VAT Rates | April 2024/2025 | April 2023/2024 |
|---|---|---|
| Standard Rate | 20% | 20% |
| VAT Fraction | 1/6 | 1/6 |
| Reduced Rate | 5% | 5% |
| Zero Rate | 0% | 0% |
| Temporary reduced rate for hospitality and tourism sector | 20% | 20% |
| Taxable Turnover Limits | Amounts | |
| Registration - from 1April 2024 | £90,000 | £85,000 |
| Deregistration - from 1 Aperil 2024 | £88,000 | £83,000 |
| To join Cash accounting scheme - up to | £1,350,000 | £1,350,000 |
| To leave Cash accounting scheme - more than | £1,600,000 | £1,600,000 |
| To join Optional flat rate scheme - up to | £150,000 | £150,000 |
| To leave Optional flat rate scheme - more than | £230,000 | £230,000 |
| To join Annual accounting scheme - up to | £1,350,000 | £1,350,000 |
| To leave Annual accounting scheme - more than | £1,600,000 | £1,600,000 |
| Detail | 2024/2025 | 2023/2024 |
|---|---|---|
| Standard threshold | £325,000 | £325,000 |
| Residence nil rate band limit | £175,000 | £175,000 |
| Taper threshold for residence nil-rate band | £2,000,000 | £2,000,000 |
| Rate of tax on balance: | ||
| Chargeable lifetime transfers | 20% | 20% |
| Transfers on, or within 7 years of, death | 40% | 40% |
| Reduced Rate | 36% | 36% |
All lifetime transfers not covered by exemptions and made within seven years of death will be added back into the estate for the purpose of calculating the tax payable. Tax attributable to such transfers is then reduced:
| Years before death | 0 - 3 | 3-4 | 4-5 | 5-6 | 6-7 |
|---|---|---|---|---|---|
| Tax paid | 40% | 32% | 24% | 16% | 8% |
Main Reliefs
| Business Property | % |
|---|---|
| Business or interest therein | 100% |
| Qualifying shareholdings in unquoted* companies | 100% |
| Shares controlling more than 50% of the voting rights in a listed company | Land, buildings or machinery owned by the deceased and used in a business they were a partner in or controlled | Land, buildings or machinery used in the business and held in a trust that it has the right to benefit from | 50% |
| Agricultural property | 50% or 100% |
* Unquoted companies include those listed on AIM
| Property Value | Rate on or after 17 March 2016 (on portion of value above threshold) |
|---|---|
| 0 to £150,000 | 0% |
| £150,000 to £250,000 | 2% |
| Over £250,000 | 5% |
| Net Present value (NPV) of the Lease | Rate on or after 17 March 2016 (on portion of value above threshold) |
| 0 to £150,000 | 0% |
| £150,000 to £5 million | 1% |
| £5 million + | 2% |
| Property Value | Rate (on portion of value above threshold) | Rate (on portion of value above threshold) if purchase is of an additional residential property | Rate (on portion of value above threshold) on or after 1st April 2021 if purchase is of residential property by certain non-UK residents | Rate (on portion of value above threshold) if purchase is of an additional residential property and by a certain non-UK resident |
|---|---|---|---|---|
| 0 to £250,000 | 0% | 3% | 2% | 5% |
| £250,000 to £925,000 | 5% | 8% | 7% | 10% |
| £925,000 to £1.5m | 10% | 13% | 12% | 15% |
| Over £1.5 million | 12% | 15% | 14% | 17% |
| Property Value | Rate (on portion of value above threshold) | Rate (on portion of value above threshold) if purchase is of an additional residential property | Rate (on portion of value above threshold) on or after 1st April 2021 if purchase is of residential property by certain non-UK residents | Rate (on portion of value above threshold) if purchase is of an additional residential property and by a certain non-UK resident |
|---|---|---|---|---|