Learn about Current Tax Rates
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.
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
*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.
Different rates apply for ring-fenced (broadly oil industry) profit
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
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):
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:
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:
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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