Learn about Current Tax Rates

Value-Added Tax (VAT)

 From 1/4/24From 1/4/23
Standard Rate20%20%
Reduced Rate5%5%
Annual Registration Limit £90,000£85,000
Annual Deregistration Limit£88,000£83,000

Disclaimer: Rates are for guidance only. No responsibility for loss occasioned by any person acting / refraining from action as a result of this information can be accepted by the authors or firm.

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Capital Allowances

First Year Allowance (FYA) on certain plant, machinery and cars of 0g/km (for cars purchased before 1 April 2025)100%
Corportation Tax FYA ('Full Expensing') on certain new, unused plant and machinery from 1 April 2023100%
Corportation Tax FYA on new, unused long-life assets, integral features of buildings, etc. from 1 April 202350%
Annual Investment Allowance £1,000,000 excluding cars 

Writing Down Allowance

Long-life assets, integral features of buildings, cars over 50g/km

Other plant and machinery

 

6%

 

18%

Structures and Buildings Allowance3%

Selected Rates

*Or 90% of weekly earnings if lower.

National Living Wage and National Minimum Wage

Applies to apprentices under 19 or 19 and over in the first year of apprenticeship. NLW applies to those aged 21 and over.

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Corporation Tax

Different rates apply for ring-fenced (broadly oil industry) profit

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Pension Premiums

 2024/252023/24
Lifetime Allowance (LA) LimitNo LA ChargeNo LA Charge
Annual Allowance Limit£60,000£60,000
Money Purchase Annual Allowance£10,000£10,000

Employers will obtain tax relief on employer contributions if they are paid and made ‘wholly and exclusively’.

Stamp Duty and Stamp Duty Land Tax

Land and Buildings in England and N. Ireland

Residential rates may be increased by 3% where further residential properties are acquired.

Income Tax Rates

Rates and Bands (other than savings and dividend income)

Income tax rates in Scotland and Wales on income other than savings and dividend income have been devolved.

A starting rate of 0% may be available unless taxable non-savings income exceeds £5,000.

Income Tax Reliefs

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Tax Relief for Individuals

2024/25 and 2023/24

Enterprise Investment Scheme (EIS)

Relief on investments in certain unquoted trading companies up to £1m per annum (£2m for knowledge intensive companies):

  • Income tax relief at 30%
  • Capital gains exemption on disposal

Unlimited amounts of capital gains from the disposal of other assets may be able to be deferred by making an EIS investment.

Seed Enterprise Investment Scheme (SEIS)

Relief on investments in certain unquoted trading companies up to £200,000* per annum:

  • Income tax relief at 50%
  • Capital gains exemption on disposal

Capital gains from the disposal of other assets may be exempt up to £100,000* per annum by making an SEIS investment.

Venture Capital Trusts (VCTs)

Relief on investments in certain quoted companies up to £200,000 per annum:

  • Income tax relief at 30%
  • Capital gains exemption on disposal

Dividend received from VCTs may be exempt from income tax.

*Limits subject to Parliamentary approval.

Capital Gains Tax

Higher rates (18/24% for 2024/25 and 18/28% for 2023/24) may apply to the disposal of certain residential property.

Business Asset Disposal Relief

The first £1m of qualifying gains are charged at 10%.

Individual Savings Accounts

National Insurance

2024/25 Class 1 (Employed) Rates

Entitlement to contribution-based benefits for employees retained for earnings between £123 and £242 per week. The employer rate is 0% for certain military veterans, employees under 21 and apprentices under 25 on earnings up to £967 per week.

Inheritance Tax

A further nil rate band of £175,000 may be available in relation to current or former residences.

Car, Van and Fuel Benefits

For fully diesel cars generally add a 4% supplement (unless the car is registered on or after 1 September 2017 and meets the Euro 6d emissions standard) but the maximum is still 37%. For emissions of 75g/km or more the CO2 figure does not end in a 5 or 0 round down to the nearest 5 or 0. 

 2024/25
Cars Fuel Benefit£27,800
Van Benefit£3,960
Van Fuel Benefit£757

Disclaimer - for information of users

This publication is published for the information of clients. It provides only an overview of the regulations in force at the date of publication and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this publication can be accepted by the authors or the firm.

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