Learn about Current Tax Rates

Value-Added Tax (VAT)

	From 1/4/24	From 1/4/23
Standard Rate	20%	20%
Reduced Rate	5%	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.

Standard Rate	20%
Reduced Rate	5%
Annual Registration Limit from 1/4/17 (1/4/16 to 31/3/17 - £83,000)	£85,000
Annual Deregistration Limit from 1/4/17 (1/4/16 to 31/3/17 - £81,000)	£83,000

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 2023	100%
Corportation Tax FYA on new, unused long-life assets, integral features of buildings, etc. from 1 April 2023	50%
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 Allowance	3%

Selected Rates

Weekly Benefit	2024/25	2023/24
New State Pension	£221.20	£203.85
Old State Pension	£169.50	£156.20
Statutory Pay Rates – Average Weekly Earnings £123 or over
Sick Pay	£116.75	£109.40
Maternity and Adoption Pay	£184.03	£172.48
Shared Parental Pay	£184.03	£172.48
Paternity Pay	£184.03	£172.48

Weekly Benefit	2017/18	2018/19
Basic Retirement Pension Single Person Married Couple	£122.30 £195.60	£119.30 £190.80
New State Pension	£159.55	£155.65
Statutory Pay Rates – Average Weekly Earnings £113 (£112) or over
Statutory Sick Pay	£89.35	£88.45
Statutory Maternity and Adoption Pay First Six Weeks Next 33 Weeks	90% of Weekly Earnings £140.98*	90% of Weekly Earnings £139.58*
Statutory Paternity Pay Two Weeks	£140.98*	£139.58*

*Or 90% of weekly earnings if lower.

National Living Wage and National Minimum Wage

Age	NLW	18-20	16-17	Apprentices
From 1 April 2024	£11.44	£8.60	£6.40	£6.40

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

Corporation Tax

Year to 31/03/24 and 31/03/25	Profits Band £	Rate %
Small Profits Rate	0 - 50,000	19
Marginal Rate	50,001 - 250,000	26.5
Main Rate	Over 250,000	25
Marginal Relief Fraction	3/200

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

Year to 31/3/2018		Year to 31/3/17
Profits Band	Rate	Profits Band	Rate
£	%	£	%
All Profits	19	All Profits	20

Pension Premiums

	2024/25	2023/24
Lifetime Allowance (LA) Limit	No LA Charge	No 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.

Residential Band £	Rate %	Non-Residential Band £	Rate %
0 – 250,000	0	0 - 150,000	0
250,001 – 925,000	5	150,001 – 250,000	2
925,001 – 1,500,000	10	Over 250,000	5
Over 1,500,000	12

First-Time Buyer relief may apply to residential purchases up to £625,000.*

*The residential property rules are scheduled to change from 1 April 2025

Income Tax Rates

Rates and Bands (other than savings and dividend income)

2024/25		2023/24
Band £	Rate %	Band £	Rate %
0 – 37,700	20	0 – 37,700	20
37,701 - 125,140	40	37,701 - 125,140	40
Over 125,140	45	Over 125,140	45

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

Savings Income	2024/25 and 2023/24
Savings allowance basic rate	£1,000
Savings allowance higher rate	£500

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

Dividend Income	2024/25	2023/22
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%

2017/18

2016/17

Band £

Rate %

Band £

Rate %

0 – 5,000

0 – 33,500†

33,501† - 150,000

More Than 150,000

20**

40***

45****

0 – 5,000

0 – 32,000

32,001 – 150,000

More Than 150,000

20**

40***

45****

Income Tax Reliefs

	2024/25	2023/24
Personal Allowance	£12,570	£12,570
Personal Allowance Income Limit	£100,000	£100,000
Marriage Allowance	£1,260	£1,260
Married Couple’s Allowance	£11,080	£10,375
- Minimum Amount	£4,280	£4,010
- Income Limit	£37,000	£34,600
Blind Person’s Allowance	£3,070	£2,870

	2017/18	2016/17
Personal Allowance (Reduce personal allowance by £1 for every £2 of adjusted net income over £100,000)	£11,500**	£11,000**
**£1,150 (£1,100) may be transferable between certain spouses where neither pay tax above the basic rate.
Married Couple’s Allowance (Relief at 10%)* (Either partner 75 or over and born before 6th April, 1935) Minimum Amount	£8,445 £3,260	£8,355 £3,220
*Age Allowance Income Limit (Reduce age allowance by £1 for every £2 of adjusted net income over £28,000 (£27,700).)	£28,000	£27,700
Blind Person’s Allowance	£2,320	£2,290

	2017/18	2016/17
Personal Allowance (Reduce personal allowance by £1 for every £2 of adjusted net income over £100,000)	£11,500**	£11,000**
**£1,150 (£1,100) may be transferable between certain spouses where neither pay tax above the basic rate.
Married Couple’s Allowance (Relief at 10%)* (Either partner 75 or over and born before 6th April, 1935) Minimum Amount	£8,445 £3,260	£8,355 £3,220
*Age Allowance Income Limit (Reduce age allowance by £1 for every £2 of adjusted net income over £28,000 (£27,700).)	£28,000	£27,700
Blind Person’s Allowance	£2,320	£2,290

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

Individuals	2024/25	2023/22
Exemption	£3,000	£6,000
Standard Rate	10%	10%
Higher / Additional Rate	20%	20%
Trusts
Exemption	£1,500	£3,000
Rate	20%	20%

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

	2024/25	2023/24
Overall Investment Limit	£20,000	£20,000
Junior Account Investment Limit	£9,000	£9,000

	2017/18	2016/17
Overall Investment Limit	£20,000	£15,240
Junior Account Limit	£4,128	£4,080

	2017/18	2016/17
Overall Investment Limit	£20,000	£15,240
Junior Account Limit	£4,128	£4,080

National Insurance

2024/25 Class 1 (Employed) Rates

Employee		Employer
Earnings per Week	%	Earnings per Week	%
Up to £242	Nil	Up to £175	Nil
£242.01 - £967	8	Over £175	13.8
Over £967	2

Employee		Employer**
Earnings per Week	%	Earnings per Week**	%
Up to £157	Nil*	Up to £157	Nil
£157.01 - £866	12	More Than £157	13.8**
More Than £866	2

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.

Class 1A (Employers)	13.8% on Employee Taxable Benefits
Class 1B (Employers)	13.8% on PAYE Settlement Agreements
Class 2 (Self-Employed)	Nil (£3.45 Per Week Where Those With Profits Below £6,725 Wish to Make a Voluntary Contribution)
Class 3 (Voluntary)	Flat Rate per Week is £17.45
Class 4 (Self-Employed)	6% on Profits Between £12,570 and £50,270 plus 2% on Profits Over £50,270

Class 1A (Employers)	13.8% on Employee Taxable Benefits
Class 1B (Employers)	13.8% on PAYE Settlement Agreements
Class 2 (Self-Employed)	Flat Rate per Week of £2.85 Small Profits Threshold is £6,025 p.a.
Class 3 (Voluntary)	Flat Rate per Week is £14.25
Class 4 (Self-Employed)	9% on Profits between £8,164 and £45,000 plus 2% on Profits of More Than £45,000

Inheritance Tax

Death Rate	Lifetime Rate	Chargeable Transfers 2024/25 and 2023/24
Nil	Nil	£0 - £325,000 (Nil Rate Band)
40%	20%	Over £325,000

Death Rate	Lifetime Rate	Chargeable Transfers 2017/18 and 2016/17
Nil	Nil	£0 - £325,000 (Nil Rate Band)
40%	20%	More Than £325,000

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

Car, Van and Fuel Benefits

2024/25
CO2 Emissions (gm/km)	% of List Price Taxed
0	2
1 - 50
Electric Range
- 130 or More	2
- 70 - 129	5
- 40 - 69	8
- 30 - 39	12
- Under 30	14
51 - 54	15
For Every Extra 5	+1
160 and Above	37

CO2 Emissions (gm/km) (Round down to nearest 5gm/km)	% of Car’s List Price Taxed
0 – 50*	9
51 - 75*	13
76 - 94*	17
95	18
100	19
105	20
110	21
115	22
120	23
125	24
130	25
135	26
140	27
145	28
150	29
155	30
160	31
165	32
170	33
175	34
180	35
185	36
190 and above	37

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.