Income Tax rates and allowances (England)
Click here for National Insurance rates
Different Income Tax rates and allowances may apply for other parts of the UK, see:
Income Tax: personal allowances and reliefs
Year |
2024-25 |
2023-24 |
2022-23 |
2021-22 |
2020-21 |
2019-20 |
Personal allowance PA restricted by £1 for every £2 of income over £100k* |
12,570 |
12,570 |
12,570 |
12,570 |
12,500 |
12,500 |
Savings allowance: Basic Rate Higher Rate Additional Rate |
1,000 500 0 |
1,000 500 0 |
1,000 500 0 |
1,000 500 0 |
1,000 500 0 |
1,000 500 0 |
Property/Trading allowance** |
1,000 |
1,000 |
1,000 |
1,000 |
1,000 |
1,000 |
Blind person's allowance |
3,070 |
2,870 |
2,600 |
2,520 |
2,500 |
2,450 |
Transferable marriage allowance |
1,260 |
1,260 |
1,260 |
1,260 |
1,250 |
1,250 |
Married Couples Allowance (MCA) (born before 6 April 1935) Max Min up to 10% of the appropriate Max/Min |
11,080 4,280 |
10,375 4,010 |
9,415 3,640 |
9,125 3,530 |
9,075 3,510 |
8,915 3,450 |
MCA Limit MCA reduced by £1 for every £2 exceeding limit |
37,000 |
34,600 |
31,400 |
30,400 |
30,200 |
29,600 |
Rent-a-room Relief |
7,500 |
7,500 |
7,500 |
7,500 |
7,500 |
7,500 |
*Personal allowance restriction: by £1 for every £2 of an individual's Adjusted net income above £100,000.
**Property/Trading allowance: Up to £1,000 Trading and property allowances are available for each type of income. Restrictions apply.
***Transferable allowance: a spouse or civil partner who is not liable to Income Tax above the basic rate may transfer their 'Marriage Allowance' which is 10% of their personal allowance (£1,260 for 2024-25 and 2023-24) to their spouse/civil partner, provided that the recipient of the transfer is not liable to Income Tax above the basic rate. Taxpayers have four years in which to make the election.
Past years
2018-19 |
2017-18 |
2016-17 |
2015-16 |
2014-15 |
|
Personal allowance PA restricted by £1 for every £2 of income over £100K |
11,850 | 11,500 | 11,000 | 10,600 | 10,000 |
Savings allowance: Basic Rate Higher Rate Additional Rate |
1,000 500 0 |
1,000 500 0 |
1,000 500 0 |
N/A | N/A |
Property/Trading allowance | 1,000 | 1,000 | N/A | N/A | N/A |
Blind person's allowance |
2,390 | 2,320 | 2,290 | 2,290 | 2,230 |
Transferable marriage allowance (for married couples and civil partners)** |
1,190 | 1,150 | 1,100 | 1,060 | N/A |
Married Couples Allowance (MCA) (born before 6 April 1935) Max Min up to 10% of the appropriate Max/Min |
8,695 3,360 |
8,445 3,260 |
8,355 3,220 |
8,355 3,220 |
8,165 3,140 |
MCA Limit MCA reduced by £1 for every £2 exceeding limit |
28,900 | 28,000 | 27,700 | 27,700 | 27,000 |
Rent-a-room Relief |
7,500 | 7,500 | 7,500 | 7,500 | 7,500 |
Income Tax rates
Rate |
% |
2023-24 & 2024-25 |
2021-22 & 2022-23 |
2019-20 & 2020-21 |
2018-19 |
Savings rate* |
0% |
£0 - £5,000 |
£0 - £5,000 |
£0 - £5,000 |
£0 - £5,000 |
Basic |
20% |
£0-£37,700 |
£0-£37,700 |
£0-£37,500 |
£0-£34,500 |
Higher |
40% |
£37,701 to |
£37,701 to |
£37,501 to |
£34,501 |
Additional |
45% |
£125,140+ |
£150,001+ |
£150,001+ |
£150,001+ |
Past years
Rate |
% |
2017-18 |
2016-17 |
2015-16 |
2014-15 |
Savings rate* |
0% |
£0 - £5,000 |
£0 - £5,000 |
£0 - £5,000 |
n/a |
Basic |
20% |
£0 -£33,500 |
£0 -£32,000 |
£0 - £31,785 |
£0 to £31,865 |
Higher |
40% |
£33,501 to £150,000 |
£32,001 to £150,000 |
£31,786 to £150,000 |
£31,866 to £150,000 |
Additional |
45% |
£150,001+ |
£150,001+ |
£150,001+ |
£150,001+ |
*The 0% savings rate is available where an individual's taxable non-savings income is below this limit: a 0% tax rate applies to savings income up to the limit.
Child Benefit claimants
From 7 January 2013 the High Income Child Benefit Tax Charge provisions clawback Child Benefit payments when a claimant or their partner's income exceeds £50,000 (£60,000 from 6 April 2024).
Dividend tax (from 2016-17)
Rates
- Basic rate dividends are taxed at 8.75% (7.5% before 6 April 2022).
- Higher rate dividends are taxed at 33.75% (32.5% before 6 April 2022).
- Additional rate dividends are taxed at 39.35% (38.1% before 6 April 2022).
Tax-free band
- The dividend allowance taxes the first £1,000 (2023-24) of dividends at 0%.
- For 2024-25, the dividend allowance decreased to £500.
- This allowance was:
- £2,000 for 2018-19 to 2022-23.
- £5,000 for 2016-17 and 2017-18.
Tax rate & effective tax rate on dividends
Rate |
2022-23 on |
2016-17 to 2021-22 |
2013-14 to 2015-16 |
Additional tax rate |
45% |
45% |
45% |
Dividend rate |
39.35% |
38.1% |
37.5% |
Effective rate |
n/a |
n/a |
30.55% |
Higher tax rate |
40% |
40% |
40% |
Dividend rate |
33.75% |
32.5% |
32.5% |
Effective rate |
n/a |
n/a |
25% |
Basic rate |
8.75% |
7.5% |
10%* |
* Dividend received net of 10% tax credit. The amount received needs to be grossed up for higher rate taxpayers by multiplying by 10/9. The dividend rate is then applied according to your tax band
Special rates for trustees' income
Rate |
2024-25 |
2022-23 and 2023-24 |
2016-17 to 2021-22 |
2013-14 to 2015-16 |
Dividend rate: within the first £1,000* |
N/A |
8.75% |
7.5% |
- |
Standard rate: on first £1,000 of other income which would otherwise be taxed at the special rate for trustees* | N/A | Up to 20% depending on type of income | ||
Trust rate: all other income |
45% |
45% |
45% |
45% |
Dividend trust rate |
39.35% |
39.35% |
38.1% |
37.5% |
*From April 2024 this rate/band is removed.
See Dividend tax
Pensions: higher rate restrictions
Contribution limits |
2023-24 & 2024-25 |
2020-21 to 2022-23 |
2019-20 |
2018-19 |
2016-17 |
2014-15 to 2015-16 |
Annual Allowance |
£60,000** |
£40,000* |
£40,000 |
£40,000 |
£40,000 |
£40,000 |
Tapered Annual Allowance threshold |
£260,000 |
£240,000 |
£150,000 |
£150,000 |
£150,000 |
n/a |
*reduced to as low as £4,000 in some circumstances.
**reduced to as low as £10,000 in some circumstances.
See Pensions: tax rules and planning
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