2024-25 Tax Rates & Allowances

Income Tax 2024-25

Personal allowances

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Personal allowance (PA)

£12,570

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PA restricted by £1 for every £2 of adjusted net income over

£100,000

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Transferable tax allowance for certain married couples

£1,260

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Blind person's allowance

£3,070

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Married couples' allowance (at least one born pre 6 Apr 1935):
Maximum (relief given at 10%) £11,080
Minimum (relief given at 10%) £4,280

Other allowances

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Personal savings allowance:
Basic rate taxpayers £1,000
Higher rate taxpayers £500
Additional rate taxpayers £0

 Maximum savings starting rate (non-savings income < PA)
Reduces by £1 for every £1 of non-savings income > PA   £5,000
 

Dividend allowance 

£500

Rent-a-room relief amount

£7,500

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Trading allowance 

£1,000

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Property allowance 

£1,000

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Income Tax bands and rates 2024-25

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Basic Rate

Basic rate band: £37,700 20%
Savings 20%
Non-savings 20%
Dividends 8.75%
Gift Aid and pension contributions can extend basic rate band.

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Higher Rate
Higher rate band: £37,701-£125,140 
Savings 40%
Non-savings 40%
Dividends 33.75%

Additional Rate

Additional rate band: £125,140 +
Savings 45%
Non-savings 45%
Dividends 39.35%

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Child benefit

One child (per week) £25.60

Additional children (per week)  £16.95

Reduced by 1% for every £200 of income over £60,000

Child benefit fully repayable if income over £80,000

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Corporation Tax 2024-25

Corporation Tax

Small profits rate (profits <£50,000)  19%

Main rate (profits >£250,000)  25%

Marginal relief lower limit  £50,000

Marginal relief upper limit  £250,000

Reduced for short accounting periods and associated companies

Effective marginal rate  26.5%

s.455 tax on loans to participators  33.75%

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Capital allowances

Annual Investment Allowance (100%) up to £1,000,000

Plant and machinery general pool Writing Down Allowance (WDA)  18%

Integral features and certain long-life assets WDA  6%

Small pool WDA where balance <£1,000   100% 

Full expensing (main rate assets)  100%

Full expensing (special rate assets)  50%

First Year Allowance for electric charge-points  100% 

First Year Allowance for new zero-emission goods vehicles 100%

First Year Allowance for new plant and machinery used in Freeports 100% 

Structures and Buildings Allowance (SBA)  3% 

Enhanced SBA for Freeports 10%

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Capital allowances: cars

New and unused with CO2 emissions of 0g/km  100%

New or second-hand with CO2 emissions of up to 50g/km  18%

New or second-hand with CO2 emissions above 50g/km  6%

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Capital Gains Tax (CGT) 2024-25

Annual exemption for individuals  £3,000

Annual exemption for trusts generally  £1,500

Rates Individuals: 
Basic rate to 29 October 2024 10%

Basic rate from 30 October 2024 18%
Above basic rate to 29 October 2024 20%

Above basic rate from 30 October 2024 24%

Basic rate residential property gains 18%

Higher rate residential property gains 24%

Additional surcharge applicable to residential property gains  4% (to 29.10.24 only)

Trusts to 29 October 2024  20%

Trusts from 30 October 2024 24%
Companies  8%

Business Asset Disposal Relief: qualifying lifetime limit  £1,000,000

Investors' Relief: qualifying lifetime limit  to 29 October 2024 £10,000,000

Investors' Relief: qualifying lifetime limit from 30 October 2024 £1,000,000

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Inheritance Tax 2024-25

Nil rate band  £325,000

Residence nil rate band  £175,000

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VAT (Value Added Tax) 2024-25

Registration threshold (taxable turnover, i.e. excl. exempt)  £90,000

Deregistration threshold  £88,000

Rates:
Standard  20%
Reduced  5%
Zero  0%

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Cash accounting & annual accounting:
Taxable turnover upper limit for joining £1,350,000
Taxable turnover upper limit for leaving £1,600,000

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Flat rate scheme:
Taxable turnover upper limit for joining £150,000

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National Insurance Contributions (NIC's) 2024-25

Class1 (Employers & Employee's)

Lower earnings limit 

Weekly  £123 

Monthly  £533 

Yearly  £6,396 

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Primary threshold 

Weekly  £242

Monthly  £1,048

Yearly  £12,570

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Upper earnings limit

Weekly  £967

Monthly  £4,189

Yearly  £50,270

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Secondary threshold 

Weekly  £175 

Monthly  £758 

Yearly  £9,100 

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Upper secondary threshold (under 21)

Weekly  £967 

Monthly  £4,189 

Yearly  £50,270 

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Apprentice (under 25) upper secondary threshold 

Weekly  £967 

Monthly  £4,189 

Yearly  £50,270 

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Rates

Employees' main rate (primary threshold to upper earnings limit)  8%

​Employees' lower rate (above upper earnings limit) 2%

Employers' rate 13.8%

​Married women’s reduced rate between primary threshold and upper earnings limit 1.85%

Married women's rate above upper earnings limit 2%

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Classes 1A and 1B (employers)

Class 1A  13.8%

Class 1B  13.8%

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Classes 2 and 4 (self-employed)

Class 2  

Flat rate per week  £3.45

Small profits threshold  £6,725

Lower profits limit  £0

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Class 4  

Profit threshold  £12,570 to £50,270

Rate  6%

On profits over £50,270  2.%

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Class 3 (voluntary) 

Flat rate per week  £17.45

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Employment Allowance

£5,000

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