Personal tax rates
Find here UK Income Tax rates and Personal Allowances.
Personal tax rates for UK taxpayers: if you have income arising in the UK, you may be subject to these tax rates on tax payable in the UK
Find here the UK Income Tax rates and Personal Allowances, including: tax free Personal Allowance, Income Tax Rates, Capital Gains Tax (CGT).
Please note that the rates shown on this pages only apply to residents of England, Wales and Northern Ireland, and to all non-residents. The rates shown on this page do not apply to residents of Scotland.
Find here the UK Income Tax rates and Personal Allowances, including: tax free Personal Allowance, Income Tax Rates, Capital Gains Tax (CGT).
Starting Rate for Savings
- You may get up to £5,000 of interest tax-free. This is your Starting Rate for Savings.
- The more you earn from other income (for example your wages or pension), the less your starting rate for savings will be.
- You are not eligible for the starting rate for savings if your other income is £17,570 (£17,500 for 2023-24) or more.
- Your starting rate for savings is a maximum of £5,000. Every £1 of other income above your Personal Allowance reduces your starting rate for savings by £1.
Personal Savings Allowance
You may also get up to £1,000 of interest tax-free depending on which Income Tax band you are in. This is your Personal Savings Allowance.
| Personal Savings Allowance | 2023-24 | 2024-25 |
|---|---|---|
| Basic rate | £1,000 | £1,000 |
| Higher rate | £500 | £500 |
| Additional rate | £0 | £0 |
Personal Allowance (tax-free)
The standard Personal Allowance is the amount of income on which you do not have to pay tax.
| Personal Allowance | 2023-24 | 2024-25 |
|---|---|---|
| Personal Allowance (if applicable) | £12,570 | £12,570 |
| Transferable Tax Allowance (Marriage Allowance) | £1,260 | £1,260 |
Income Tax Rates
If the Personal Allowance is applicable:
| Income Tax Rates | 2023-24 | 2024-25 |
|---|---|---|
| Personal Allowance (0%) | From £0 to £12,570 | From £0 to £12,570 |
| Basic rate band (20%) | From £12,571 to £50,270 | From £12,571 to £50,270 |
| Higher rate band (40%) | From £50,271 to £125,140 | From £50,271 to £125,140 |
| Additional rate band (45%) | Above £125,140 | Above £125,140 |
- For those with income over £100,000 the Personal Allowance is reduced by £1 for every £2 that the taxable income is in excess of £100,000. So that, for income in excess of £125,140 no Personal Allowance is available.
If the Personal Allowance is NOT applicable:
| Income Tax Rates | 2023-24 | 2024-25 |
|---|---|---|
| Basic rate band (20%) | From £0 to £37,700 | From £0 to £37,700 |
| Higher rate band (40%) | From £37,701 to £125,140 | From £37,701 to £125,140 |
| Additional rate band (45%) | Above £125,140 | Above £125,140 |
Other items
| Income Tax Rates | 2023-24 | 2024-25 |
|---|---|---|
| Dividend allowance | £1,000 | £500 |
| Dividend ordinary rate (if your Income Tax band is the Basic rate) | 8.75% | 8.75% |
| Dividend higher rate (if your Income Tax band is the Higher rate) | 33.75% | 33.75% |
| Dividend additional rate (if your Income Tax band is the Additional rate) | 39.35% | 39.35% |
| Rent a Room Relief | £7,500 | £7,500 |
| Property Income Allowance | £1,000 | £1,000 |
- Where an individual’s non-savings income exceeds the Starting Rate for Savings limit, the Starting Rate for Savings is reduced by £1 for every £1 of other income over the Personal Allowance.
- The rate of Income Tax applicable to Trusts is 45% (dividend income 39.35%).
Capital Gains Tax (CGT)
Capital Gains Tax is a tax payable on the disposal of an asset that has increased in value.
| Capital Gains Tax (CGT) | 2023-24 | 2024-25 |
|---|---|---|
| Individuals Annual Exemption | £6,000 | £3,000 |
| Gains from residential property | 18% / 28% | 18% / 24% |
| All other gains | 10% / 20% | 10% / 20% |
- The amount of the gain taxable at the lower rate is equal to the unused amount of the basic rate band for Income Tax.
- Special rules apply on disposals of leasehold interests of less than 50 years.
- The gain arising during a period when the property was the taxpayer’s Principal Private Residence is exempt and the last nine months of ownership are deemed to be an additional period of Principal Private Residence.
- If a Principal Private Residence has at some time been a let property, then the gain arising in the period when the property was let may be reduced by the Lettings Relief capped at £40,000. Lettings Relief will only apply where the owner is sharing occupancy of the home with the tenant(s) under the same roof.
- From 27th October 2021, all disposals of residential property must be reported and the tax paid within 60 days (previously 30 days) of the completion of the transaction, unless the owner is UK resident and either the property has been the Principal Private Residence throughout the period of ownership or a loss has been made on disposal.
- Non-residents pay CGT only on the disposal of UK land and buildings.
Stamp Duty Land Tax (SDLT)
- Special rates apply to purchases in Scotland and Wales. The following apply to England and Northern Ireland only.
- Special rules apply to purpose built student accommodation and to rooms in care homes.
- Special rates (not included here) apply to the purchase of a new lease.
Residential property
| Purchase of the first or main property by an individual | SDLT rate |
|---|---|
| Up to £250,000 | 0% |
| Excess over £250,001 up to £925,000 | 5% |
| Excess over £925,001 up to £1,500,000 | 10% |
| Excess over £1,500,001 | 12% |
- All purchases of second or additional properties are subject to a surcharge of 3%.
- From 1st April 2021, all purchases of residential property by a non-resident are subject to a surcharge of 2%.
- A reduction in SDLT is applicable to first-time buyers.
| Purchase of a second or additional property subject to ATED | SDLT rate |
|---|---|
| The rate applies to the whole of the consideration where the purchaser is not an individual and the consideration exceeds £500,000 | 15% |
- For residential properties to which ATED applies the rate of SDLT is 15% on the whole value.
- Company purchases of residential properties for more than £500,000 are subject to SDLT at 15%. However, if the company is to use the property in a rental business, the reduced rates apply.
The following table applies to:
- Non-residential freehold property (including some purpose-built student accommodation)
- Leasehold property (applies to lease premiums or transfer value)
| Purchase price or value of rent | SDLT rate |
|---|---|
| Up to £150,000 | 0% |
| The next £100,000 (the portion from £150,001 to £250,000) | 2% |
| The remaining amount (the portion above £250,000) | 5% |
Inheritance Tax (IHT)
Inheritance Tax is a tax on the estate (the property, money and possessions) of someone who has died.
| Inheritance Tax (IHT) | 2023-24 | 2024-25 |
|---|---|---|
| £0% rate band | £325,000 | £325,000 |
| Residence £0% rate band | £175,000 | £175,000 |
| Lifetime transfers in excess of £325,000 | 20% | 20% |
| Rate of tax on the excess over the £0% rate band | 40% | 40% |
- Chargeable transfers are aggregated. Lifetime transfers in excess of £325,000 are taxed at 20%. On death the rate on the excess of an estate over £325,000 is 40%. A tapered rate is applied to transfers made between three and seven years before death.
- The first £325,000 is called the £Nil rate band.
- Between husband and wife, the surviving spouse may use any part of the £Nil Rate Band that was not used on the first death. Transfers between husband and wife who are both UK domiciled or both non-UK domiciled are exempt.
- The £0% rate band is increased to accommodate the transfer of the family home to a descendant, with restrictions on estates worth over £2,000,000.
- Small gifts out of income may be exempt.
- Inheritance Tax applies to certain trusts and is payable at a (very) reduced rate every tenth year and on exit.
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