A summary of key tax rates and allowances for 2023-24 and 2022-23.
Income Tax
Personal allowances |
2023-24 |
2022-23 |
Personal allowance (PA) |
£12,570 |
£12,570 |
PA restricted by £1 for every £2 of adjusted net income over |
£100,000 |
£100,000 |
Transferable tax allowance for married couples and civil partners |
£1,260 |
£1,260 |
Blind person's allowance |
£2,870 |
£2,600 |
Married couples' allowance (at least one born pre-6 April 1935): |
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Other allowances |
2023-24 |
2022-23 |
Personal savings allowance: |
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Maximum savings starting rate (non-savings income < PA) |
£5,000 |
£5,000 |
Dividend allowance |
£1,000 |
£2,000 |
Rent-a-room relief amount |
£7,500 |
£7,500 |
Trading allowance |
£1,000 |
£1,000 |
Property allowance |
£1,000 |
£1,000 |
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Income Tax bands and rates |
2023-24 |
2022-23 |
Basic rate band: |
£37,700 |
£37,700 |
Higher rate band: |
£37,701-£125,140 |
£37,701-£150,000 |
Additional rate band: |
£125,140+ |
£150,000+ |
Rates applicable to trusts: |
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Non-domicile remittance basis charge (RBC) |
2023-24 |
2022-23 |
De minimis unremitted foreign income and gains |
£2,000 |
£2,000 |
UK resident 7 of last 9 tax years RBC |
£30,000 |
£30,000 |
UK resident 12 of last 14 tax years RBC |
£60,000 |
£60,000 |
UK resident 15 of last 20 tax years |
Deemed domiciled |
Deemed domiciled |
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Child benefit |
2023-24 |
2022-23 |
One child (per week) |
£24.00 |
£21.80 |
Additional children (per week) |
£15.90 |
£14.45 |
Reduced by 1% for every £100 of income over |
£50,000 |
£50,000 |
Child benefit fully repayable if income over |
£60,000 |
£60,000 |
Note: for devolved Income Tax rates and bands applying in Scotland, see: Scottish Income Tax Rates
Savings & investments
ISA |
2023-24 |
2022-23 |
ISA annual limit (cash and shares combined) |
£20,000 |
£20,000 |
Lifetime ISA annual limit |
£4,000 |
£4,000 |
Lifetime ISA withdrawal charge |
25% |
25% |
Help to buy ISA limit per month (closed to new accounts November 2019) |
£200 |
£200 |
Junior ISA annual limit |
£9,000 |
£9,000 |
Venture capital |
2023-24 |
2022-23 |
Maximum individual investment: |
£1,000,000 |
£1,000,000 |
Maximum Income Tax reduction: |
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|
Pensions |
2023-24 |
2022-23 |
Lifetime allowance |
£1,073,100 (removed from 6 April 2024) Lifetime allowance charge removed from 6 April 2023 |
£1,073,100 |
Annual allowance maximum |
£60,000 |
£40,000 |
Annual allowance minimum |
£10,000 |
£4,000 |
Maximum gross tax-relieved contributions with no relevant earnings |
£3,600 |
£3,600 |
Money purchase annual allowance |
£10,000 |
£4,000 |
CGT
Exemptions |
2023-24 |
2022-23 |
Annual exemption for individuals |
£6,000 |
£12,300 |
Annual exemption for trusts generally |
£3,000 |
£6,150 |
Chattels max gain 5/3rds x proceeds less exempt amount of... |
£6,000 |
£6,000 |
Rates |
2023-24 |
2022-23 |
Individuals: |
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Trusts |
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Companies |
See Corporation Tax |
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Reliefs |
2023-24 |
2022-23 |
Business Asset Disposal Relief: qualifying lifetime limit |
£1,000,000 |
£1,000,000 |
Investors' Relief: qualifying lifetime limit |
£10,000,000 |
£10,000,000 |
Both reliefs result in CGT at 10% on qualifying gains |
IHT
Exemptions and nil rates |
2023-24 |
2022-23 |
Nil rate band |
£325,000 |
£325,000 |
Residence nil rate band maximum Tapered for estates exceeding |
£175,000 £2,000,000 |
£175,000 £2,000,000 |
Maximum at nil rate including maximum nil rate band transfers from spouse/civil parter |
£1,000,000 |
£1,000,000 |
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Rates |
2023-24 |
2022-23 |
Chargeable lifetime transfers |
20% |
20% |
Transfers on, or within seven years of, death (excess over nil rate band) |
40% |
40% |
Transfers on death, where 10% or more left to charity |
36% |
36% |
Taper relief on IHT payable for gifts made within seven years of death |
0 - <3 years |
0% |
Exemptions and reliefs |
2023-24 |
2022-23 |
Gifts to UK domiciled spouse (or non-dom with domicile election) |
Unlimited |
Unlimited |
Gifts to non-domiciled spouse (additional to nil rate band) |
£325,000 |
£325,000 |
Annual exemption (per donor): can be carried forward one year |
£3,000 |
£3,000 |
Small gifts exemption (per donee) |
£250 |
£250 |
Wedding gift from parent |
£5,000 |
£5,000 |
Wedding gift from grandparent |
£2,500 |
£2,500 |
Wedding gift from others |
£1,000 |
£1,000 |
Regular gifts out of income |
Unlimited |
Unlimited |
Gifts to charities |
Unlimited |
Unlimited |
Business Property Relief: Controlling interest in listed company |
50% relief |
50% relief |
Agricultural Property Relief (applicable to agricultural value) |
100% relief generally 50% relief in some cases |
100% relief generally 50% relief in some cases |
VAT
VAT |
2023-24 |
2022-23 |
Registration threshold (taxable turnover, i.e. excl. exempt) |
£85,000 |
£85,000 |
Deregistration threshold |
£83,000 |
£83,000 |
Rates: |
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Fractions: |
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Cash accounting & annual accounting: |
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Flat rate scheme: |
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Flat rate scheme Limited Cost Trader (LCT): LCT applies if spend on relevant goods in the quarter is: |
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Partial exemption de-minimis: recover VAT if input VAT attributable to exempt supplies is: |
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Stamp Duties & ATED
Stamp Duty |
2023-24 |
2022-23 |
Newly issued shares |
0% |
0% |
Stocks and marketable securities with consideration over £1,000 |
0.5% |
0.5% |
Stamp Duty Land Tax: residential property |
2023-24 |
2022-23 |
First time buyers where cost of property < £625,000 (£500,000 before 23 September 2022): £0 - £425,000 (£300,000 before 23 September 2022) £425,000 - £625,000 (£300,000 - £500,000 before 23 September 2022) If the cost is more than £625,000 then the normal rates apply. |
5% |
0% 5%
|
£0 - £250,000 (£125,000 before 23 September 2022) |
0% |
0% |
£125,001 - £250,000 |
N/A |
2% |
£250,001 - £925,000 |
5% |
5% |
£925,001 - £1,500,000 |
10% |
10% |
£1,500,001 + |
12% |
12% |
Supplement for second home/buy-to-let and companies Not applicable if consideration less than |
3% £40,000 |
3% £40,000 |
Higher rate for non-natural person with non-qualifying activity (applies to companies, partnerships with a company partner and collective investment schemes) |
15% if >£500,000 |
15% if >£500,000 |
Surcharge for non-UK residents |
2% |
2% |
Stamp Duty Land Tax: non-residential or mixed property |
2023-24 |
2022-23 |
£0 - £150,000 | 0% | 0% |
£150,001 - £250,000 | 2% | 2% |
£250,001 + | 5% | 5% |
Qualifying purchases in Freeport tax sites are eligible for full relief from SDLT. |
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Annual Tax on Enveloped Dwellings |
2023-24 |
2022-23 |
Applies if market value on valuation date exceeds |
£500,000 |
£500,000 |
Valuation dates |
1 April 2022 |
1 April 2017 |
Annual charge if taxable value is £500,001 - £1,000,000 |
£4,150 |
£3,800 |
£1,000,001 - £2,000,000 |
£8,450 |
£7,700 |
£2,000,001 - £5,000,000 |
£28,650 |
£26,050 |
£5,000,001 - £10,000,000 |
£67,050 |
£60,900 |
£10,000,001 - £20,000,000 |
£134,550 |
£122,250 |
£20,000,001 + |
£269,450 |
£244,750 |
Note:
- For devolved Land and Buildings Transactions Tax rates and bands applying in Scotland, see: Scottish LBTT Rates
- For devolved Land Transaction Tax rates and bands applying in Wales, see: Welsh LTT Rates
Corporation Tax
Corporation Tax |
2023-24 |
2022-23 |
General rate |
N/A |
19% |
Small profits rate (profits <£50,000) |
19% |
N/A |
Main rate (profits >£250,000) |
25% |
N/A |
Marginal relief lower limit Marginal relief upper limit Reduced for short accounting periods and associated companies |
£50,000 £250,000
|
N/A N/A
|
Marginal relief standard fraction |
3/200 |
N/A |
Effective marginal rate |
26.5% |
N/A |
s.455 tax on loans to participators |
33.75% |
33.75% |
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Patent box and R&D |
2023-24 |
2022-23 |
Patent box effective rate |
10% |
10% |
Research and Development (R&D) capital expenditure relief |
100% |
100% |
R&D total enhanced deduction for SMEs |
186% |
230% |
R&D tax credit rate on the surrendable loss for SMEs. Payable tax credit in a year exceeding £20,000 is restricted to £20,000 + 3x total PAYE Income Tax and NICs liability. |
10% |
14.5% |
R&D large company above the line credit (Research and development expenditure credit (RDEC)) |
20% |
13% |
R&D intensive SME payable credit (Where qualifying R&D expenditure is >40% of total expenditure) |
14.5% | N/A |
Film/high-end TV/video games tax credit Increases from 25% to 34% on 1 January 2024 |
25% / 34%
|
25%
|
Animation and children’s tax relief Increases from 25% to 39% on 1 January 2024 |
25% / 39%
|
25%
|
Capital Allowances
Capital allowances |
2023-24 |
2022-23 |
Annual Investment Allowance (100%) up to |
£1,000,000 |
£1,000,000 |
Super deduction (companies only) |
N/A |
130% |
Special rate allowance (companies only) |
N/A |
50% |
Plant and machinery general pool Writing Down Allowance (WDA) |
18% |
18% |
Special rate WDA (e.g. integral features and certain long-life assets) |
6% |
6% |
Full expensing (main rate assets) |
100% |
N/A |
Full expensing (special rate assets) |
50% |
N/A |
Small pool WDA where balance <£1,000 |
100% |
100% |
First Year Allowance for electric charge-points |
100% |
100% |
First Year Allowance for new zero-emission goods vehicles |
100% |
100% |
First Year Allowance for new plant and machinery used in Freeports |
100% |
100% |
Structures and Buildings Allowance (SBA) |
3% |
3% |
Enhanced SBA for Freeports |
10% |
10% |
Capital allowance: cars |
2023-24 |
2022-23 |
New and unused with CO2 emissions of 0g/km |
100% |
100% |
New or second-hand with CO2 emissions of up to 50g/km |
18% |
18% |
New or second-hand with CO2 emissions above 50g/km |
6% |
6% |
Include cars used by sole traders or partnerships with private use in a single asset pool |
National Insurance
Class 1 (employers & employees)
Thresholds
2023-24 |
2022-23 |
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Weekly |
Monthly |
Yearly |
Weekly |
Monthly |
Yearly |
|
Lower earnings limit |
£123 |
£533 |
£6,396 |
£123 |
£533 |
£6,396 |
Primary threshold 6 April 2023 to 5 April 2024 6 April 2022 to 5 July 2022 6 July 2022 to 5 April 2023 6 April 2022 to 5 April 2023 (annual: directors) |
£242
|
£1,048
|
£12,570
|
£242 £229 |
£1,048 £992 |
£12,570 £11,908 |
Upper earnings limit |
£967 |
£4,189 |
£50,270 |
£967 |
£4,189 |
£50,270 |
Secondary threshold |
£175 |
£758 |
£9,100 |
£175 |
£758 |
£9,100 |
Freeport upper secondary threshold |
£481 |
£2,083 |
£25,000 |
£481 |
£2,083 |
£25,000 |
Upper secondary threshold (under 21) |
£967 |
£4,189 |
£50,270 |
£967 |
£4,189 |
£50,270 |
Apprentice (under 25) upper secondary threshold |
£967 |
£4,189 |
£50,270 |
£967 |
£4,189 |
£50,270 |
Veterans' upper secondary threshold |
£967 |
£4,189 |
£50,270 |
£967 |
£4,189 |
£50,270 |
Rates
2023-24 |
2022-23 |
|
Employees' main rate (primary threshold to upper earnings limit) 6 April 2023 to 5 January 2024 6 January 2024 to 5 April 2024 6 April 2023 to 5 April 2024 (annual: directors) 6 April 2022 to 5 November 2022 6 November 2022 to 5 April 2023 6 April 2022 to 5 April 2023 (annual: directors) |
12% 10% 11.5%
|
13.25% 12% 12.73% |
Employees' lower rate (above upper earnings limit) 6 April 2023 to 5 April 2024 6 April 2022 to 5 November 2022 6 November 2022 to 5 April 2023 6 April 2022 to 5 April 2023 (annual: directors) |
2%
|
3.25% 2% 2.73% |
Employers' rate* 6 April 2023 to 5 April 2024 6 April 2022 to 5 November 2022 6 November 2022 to 5 April 2023 6 April 2022 to 5 April 2023 (annual: directors) |
13.8%
|
15.05% 13.8% 14.53% |
Married women’s reduced rate between primary threshold and upper earnings limit 6 April 2023 to 5 January 2024 6 January 2024 to 5 April 2024 6 April 2022 to 5 November 2022 6 November 2022 to 5 April 2023 |
5.85% 3.85% |
7.1% 5.85% |
Married women’s rate above upper earnings limit 6 April 2023 to 5 April 2024 6 April 2022 to 5 November 2022 6 November 2022 to 5 April 2023 |
2% |
3.25% 2% |
*No employer's NIC on employees under 21, apprentices under 25, Freeport employees and veterans in the first year, up to relevant upper secondary thresholds.
Classes 1A and 1B (employers)
|
2023-24 |
2022-23 |
Class 1A |
13.8% |
14.53% |
Class 1B |
13.8% |
14.53% |
Where Class 1A National Insurance is payable on termination awards and sporting testimonial payments in 2022-23, this is paid at:
- 15.05% on payments made between 6 April 2022 and 5 November 2022.
- 13.8% on payments made between 6 November 2022 and 5 April 2023.
Classes 2 and 4 (self-employed)
2023-24 |
2022-23 |
|
Class 2 |
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Flat rate per week |
£3.45 |
£3.15 |
Share fishermen per week |
£4.10 |
£3.80 |
Volunteer development workers per week |
£6.15 |
£6.15 |
Small profits threshold |
£6,725 |
£6,725 |
Lower profits limit* |
£12,570 |
£11,908 |
Class 4 |
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Profit threshold |
£12,570 to £50,270 |
£11,908 to £50,270 |
Rate |
9% |
9.73% |
On profits over £50,270 |
2% |
2.73% |
*From 2022-23, where profits fall between the small profits threshold and lower profits limit, the earner is treated as having paid notional Class 2 contributions at a zero rate.
Class 3 (voluntary)
2023-24 |
2022-23 |
|
Flat rate per week |
£17.45 |
£15.85 |
Interest
Official rate of interest
2023-24 |
2022-23 |
|
Actual and average rate |
2.25% |
2.00% |
Interest on late and early payments
On main taxes, excluding quarterly instalment payments for Corporation Tax:
From |
Late payment |
Repayment |
22 August 2023 |
7.75% |
4.25% |
11 July 2023 |
7.50% |
4.00% |
31 May 2023 |
7.00% |
3.50% |
13 April 2023 |
6.75% |
3.25% |
21 February 2023 |
6.50% |
3.00% |
6 January 2023 |
6.00% |
2.50% |
23 November 2022 |
5.50% |
2.00% |
11 October 2022 |
4.75% |
1.25% |
23 August 2022 |
4.25% |
0.75% |
5 July 2022 |
3.75% |
0.50% |
24 May 2022 |
3.50% |
0.50% |
5 April 2022 |
3.25% |
0.50% |
Rates applying to earlier periods can be found on HMRC's website.
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