Tax Tables 2023/24

INCOME TAX

Main personal allowances and reliefs

Personal allowance* £12,570

Marriage/civil partners’ transferable allowance £1,260

Married couple’s/civil partners’ allowance at 10%†

(if at least one born before 6/4/35) – maximum £10,375 – minimum £4,010

Blind person’s allowance £2,870

Rent-a-room relief £7,500

Property allowance and trading allowance (each) £1,000

*Personal allowance reduced by £1 for every £2 of adjusted net income over £100,000

†Married couple’s/civil partners’ allowance reduced by £1 for every £2 of adjusted net income over £34,600 until minimum reached

UK taxpayers excluding Scottish taxpayers’ non-dividend, non-savings income

20% basic rate on taxable income up to £37,700

40% higher rate on next slice of income over £37,700

45% additional rate on income over £125,140

All UK taxpayers

Starting rate at 0% on band of savings income up to** £5,000

Personal savings allowance at 0%:

• Basic rate £1,000

• Higher rate £500

• Additional rate £0

Dividend allowance at 0%:

• All individuals £1,000

Tax rates on dividend income:

• Basic rate 8.75%

• Higher rate 33.75%

• Additional rate 39.35%

Trusts: Standard rate band generally £1,000

Rate applicable to trusts:

• Dividends 39.35%

• Other income 45%

**Not available if taxable non-savings income exceeds the starting rate band

High Income Child Benefit Charge

1% of benefit per £100 of adjusted net income between £50,000–£60,000

REGISTERED PENSIONS

Lifetime allowance* £1,073,100

Money purchase annual allowance £10,000

Annual allowance** £60,000

Annual allowance charge on excess is at applicable tax rate(s) on earnings

Pension commencement lump sum up to 25% of lifetime allowance for 23/24

*Lifetime allowance charge removed from April 2023

**Reduced by £1 for every £2 of adjusted income over £260,000 to a minimum of £10,000, subject to threshold income being over £200,000

STATE PENSIONS

New state pension £10,600.20 (annual) £203.85 (weekly)

Basic state pension – single person* £8,122.40 (annual) £156.20 (weekly)

Basic state pension – spouse/civil partner* £4,867.20 (annual) £93.60 (weekly)

*State pension age reached before 6/4/16

TAX INCENTIVISED INVESTMENTS

Total Individual Savings Account (ISA) limit, excluding Junior ISAs (JISAs) £20,000

Lifetime ISA £4,000

JISA and Child Trust Fund £9,000

Venture Capital Trust (VCT) at 30% £200,000

Enterprise Investment Scheme (EIS) at 30%* £2,000,000

EIS eligible for CGT deferral relief No limit

Seed EIS (SEIS) at 50% £200,000

SEIS CGT reinvestment relief 50%

*Above £1,000,000 investment must be in knowledge-intensive companies

NATIONAL INSURANCE CONTRIBUTIONS

Class 1

NICs rate 12% (employee) 13.8% (employer)

No NICs for employees generally on the first £242 pw (employee) £175 pw (employer)

No NICs for younger employees* on the first £242 pw (employee) £967 pw (employer)

NICs rate charged up to £967 pw (employee) No limit (employer)

2% NICs on earnings over £967 pw (employee) N/A (employer)

*No employer NICs on the first £967pw for employees generally under 21 years, apprentices under 25 years and veterans in first 12 months of civilian employment. No employer NICs on the first £481pw for employees at freeports and investment zones in Great Britain in the first three years of employment

Employment allowance £5,000

Per business – not available if sole employee is a director or employer’s NICs for 22/23 are £100,000 or more

Limits and thresholds

• Lower earnings limit £123 (weekly) £533 (monthly) £6,396 (annual)

• Primary threshold £242 (weekly) £1,048 (monthly) £12,570 (annual)

• Secondary threshold £175 (weekly) £758 (monthly) £9,100 (annual)

• Upper earnings limit (and upper secondary thresholds) £967 (weekly) £4,189 (monthly) £50,270 (annual)

Class 1A Employer On most employees’ and directors’ taxable benefits 13.8%

Class 2 Self-employed

• Flat rate per week £3.45 (£179.40 pa)

• Small profits threshold £6,725

• Lower earnings limit £12,570

Class 4 Self-employed

• On annual profits of £12,570 to £50,270: 9%

• Over £50,270: 2%

Class 3 Voluntary flat rate per week £17.45 (£907.40 pa)

CAPITAL GAINS TAX

Annual exemption:

• Individuals, estates, etc £6,000

• Trusts generally £3,000

Tax rate:

• Below UK higher rate band 10%

• Within UK higher and additional rate bands 20%

• Trusts and estates 20%

Surcharge for residential property and carried interest 8%

Business Asset Disposal Relief 10% on lifetime limit of £1,000,000 for trading businesses and companies (minimum 5% participation) held for at least 2 years.

INHERITANCE TAX

Nil-rate band* £325,000

Residence nil-rate band*† £175,000

Rate of tax on excess 40%

Rate if at least 10% of net estate left to charity 36%

Lifetime transfers to and from certain trusts 20%

Overseas domiciled spouse/civil partner exemption £325,000

*Up to 100% of the unused proportion of a deceased spouse’s/civil partner’s nil-rate band and/or residence nil-rate band can be claimed on the survivor’s death

†Estates over £2,000,000: the value of the residence nil-rate band is reduced by 50% of the excess over £2,000,000

100% relief: businesses, unlisted/AIM companies, some farmland/buildings

50% relief: certain other business assets

Annual exempt gifts of: £3,000 per donor £250 per donee

Tapered tax charge on lifetime gifts between 3 and 7 years of death

Years 0–3 full 40% rate, then 8% less for each year until 0% at 7 or more years.

STAMP DUTIES AND PROPERTY TRANSACTION TAXES

Stamp Duty and SDRT: Stocks and marketable securities 0.5%

Additional residential and all corporate residential properties

£40,000 or more – add 3% to SDLT rates, 6% to LBTT rates and 4% to most LTT rates

England & N Ireland – Stamp Duty Land Tax (SDLT) on slices of value

Residential property

• Up to £250,000 (0%)

• £250,001-£925,000 (5%)

• £925,000-£1,500,000 (10%)

• Over £1,500,000 (12%)

Commercial Property†

• Up to £150,000 (0%)

• £150,001-£250,000 (2%)

• Over £250,000 (5%)

  First time buyers: 0% on first £425,000 for properties up to £625,000

  Non-resident purchasers: 2% surcharge on properties £40,000 or more

  Residential properties bought by companies etc over £500,000: 15% of total consideration, subject to certain exemptions

  †0% for freeport and investment zone qualifying property in England only

Disclaimer: This document provides information and is only intended to provide an overview of the current law in this area and does not constitute financial advice, tax advice or legal advice, or provide any recommendations.

This information regarding taxation represents a summary of our understanding of the law at the date of its last review (March 2023). Tax limits, benefits, allowances and rules are often subject to change and may change in future. Individuals should check that tax limits, allowances and rules have not changed. The value of benefits depends on individual circumstances.

Different options may have different effects for tax purposes, different implications for pension provision and different impacts on other assets and financial planning.