Spring Budget 2024
Income Tax
| Personal allowances | 2024-25 | 2023-24 |
| Personal Allowance (PA) | £12,570 | £12,570 |
| PA restricted by £1 for every £2 of adjusted net income over | £100,000 | £100,000 |
| Transferable tax allowance for married couples and civil partners | £1,260 | £1,260 |
| Blind person’s allowance | £3,070 | £2,870 |
| Married couples’ allowance (at least one born pre-6 April 1935): Maximum (relief given at 10%) Minimum (relief given at 10%) Income limit |
£11,080 £4,280 £37,000 |
£10,375 £4,010 £34,600 |
| Other allowances | 2024-25 | 2023-24 |
| Personal savings allowance: Basic rate taxpayers Higher rate taxpayers Additional rate taxpayers |
£1,000 £500 £0 |
£1,000 £500 £0 |
| Maximum savings starting rate (non-savings income < PA) Reduces by £1 for every £1 of non-savings income > PA |
£5,000 | £5,000 |
| Dividend allowance | £500 | £1,000 |
| Rent-a-room relief amount | £7,500 | £7,500 |
| Trading allowance | £1,000 | £1,000 |
| Property allowance | £1,000 | £1,000 |
| Income Tax bands and rates | 2024-25 | 2023-24 |
| Basic rate band: Savings Non-savings Dividends Gift Aid and pension contributions can extend basic rate band |
£37,700 20% 20% 8.75% |
£37,700 20% 20% 8.75% |
| Higher rate band: Savings Non-savings Dividends |
£37,701-£125,140 40% 40% 33.75% |
£37,701-£125,140 40% 40% 33.75% |
| Additional rate band: Savings Non-savings Dividends |
£125,140+ 45% 45% 39.35% |
£125,140+ 45% 45% 39.35% |
| Rates applicable to trusts: Savings Non-savings Dividends |
45% 45% 39.35% |
45% 45% 39.35% |
| Non-domicile remittance basis charge (RBC) | 2024-25 | 2023-24 |
| De minimis unremitted foreign income and gains | £2,000 | £2,000 |
| UK resident 7 of last 9 tax years RBC | £30,000 | £30,000 |
| UK resident 12 of last 14 tax years RBC | £60,000 | £60,000 |
| UK resident 15 of last 20 tax years | Deemed domiciled | Deemed domiciled |
| Child benefit | 2024-25 | 2023-24 |
| One child (per week) | £25.60 | £24.00 |
| Additional children (per week) | £16.95 | £15.90 |
| Reduced by 1% for every £100 of income over | £50,000 | £50,000 |
| Child benefit fully repayable if income over | £60,000 | £60,000 |
Note:
Different rates apply for devolved Income Tax rates and bands applying in Scotland.
Savings & investments
| ISA | 2024-25 | 2023-24 |
| ISA annual limit (cash and shares combined) | £20,000 | £20,000 |
| Lifetime ISA annual limit | £4,000 | £4,000 |
| Lifetime ISA withdrawal charge | 25% | 25% |
| Help to buy ISA limit per month (closed to new accounts November 2019) | £200 | £200 |
| Junior ISA annual limit | £9,000 | £9,000 |
| Venture capital | 2024-25 | 2023-24 |
| Maximum individual investment: Enterprise Investment Scheme (EIS) EIS, where amounts over £1m invested in ‘knowledge-intensive’ companies Seed EIS (SEIS) Venture Capital Trust (VCT) |
£1,000,000 £2,000,000 £200,000 £200,000 |
£1,000,000 £2,000,000 £200,000 £200,000 |
| Maximum Income Tax reduction: EIS SEIS VCT |
30% 50% 30% |
30% 50% 30% |
| Pensions | 2024-25 | 2023-24 |
| Lifetime allowance | N/A
(removed from 6 April 2024) |
£1,073,100
Lifetime allowance charge removed from 6 April 2023 |
| Annual allowance maximum | £60,000 | £60,000 |
| Annual allowance minimum | £10,000 | £10,000 |
| Maximum gross tax-relieved contributions with no relevant earnings | £3,600 | £3,600 |
| Money purchase annual allowance | £10,000 | £10,000 |
Capital Cains Tax
| Exemptions | 2024-25 | 2023-24 |
| Annual exemption for individuals | £3,000 | £6,000 |
| Annual exemption for trusts generally | £1,500 | £3,000 |
| Chattels max gain 5/3rds x proceeds less exempt amount of: | £6,000 | £6,000 |
| Rates | 2024-25 | 2023-24 |
| Individuals: Basic rate Above basic rate Additional surcharge applicable to residential property gains Additional surcharge applicable to carried interest gains |
10% 20% 4% 8% |
10% 20% 8% 8% |
| Trusts Additional surcharge applicable to residential property gains |
20% 4% |
20% 8% |
| Companies | See Corporation Tax | |
| Reliefs | 2024-25 | 2023-24 |
| Business Asset Disposal Relief: qualifying lifetime limit | £1,000,000 | £1,000,000 |
| Investors’ Relief: qualifying lifetime limit | £10,000,000 | £10,000,000 |
| Both reliefs result in CGT at 10% on qualifying gains | ||
Inheritance Tax
| IHT exemptions and nil rates | 2024-25 | 2023-24 |
| Nil rate band | £325,000 | £325,000 |
| Residence nil rate band maximum
Tapered for estates exceeding |
£175,000
£2,000,000 |
£175,000
£2,000,000 |
| Maximum at nil rate including maximum nil rate band transfers from spouse/civil partner | £1,000,000 | £1,000,000 |
| Rates | 2024-25 | 2023-24 |
| Chargeable lifetime transfers | 20% | 20% |
| Transfers on, or within seven years of, death (excess over nil rate band) | 40% | 40% |
| Transfers on death, where 10% or more left to charity | 36% | 36% |
| Taper relief on IHT payable for gifts made within seven years of death | 0 – <3 years 3 – <4 years 4 – <5 years 5 – <6years 6 – <7 years More than 7 years |
0% 20% 40% 60% 80% Exempt |
| Exemptions and reliefs | 2024-25 | 2023-24 |
| Gifts to UK domiciled spouse (or non-dom with domicile election) | Unlimited | Unlimited |
| Gifts to non-domiciled spouse (additional to nil rate band) | £325,000 | £325,000 |
| Annual exemption (per donor): can be carried forward one year | £3,000 | £3,000 |
| Small gifts exemption (per donee) | £250 | £250 |
| Wedding gift from parent | £5,000 | £5,000 |
| Wedding gift from grandparent | £2,500 | £2,500 |
| Wedding gift from others | £1,000 | £1,000 |
| Regular gifts out of income | Unlimited | Unlimited |
| Gifts to charities | Unlimited | Unlimited |
| Business Property Relief
Controlling interest in listed company |
50% relief |
50% relief |
| Agricultural Property Relief (applicable to agricultural value) | 100% relief generally
50% relief in some cases |
100% relief generally
50% relief in some cases |
VAT
| VAT | 2024-25 | 2023-24 |
| Registration threshold (taxable turnover, i.e. excl. exempt) | £90,000 | £85,000 |
| Deregistration threshold | £88,000 | £83,000 |
| Rates: Standard Reduced Zero |
20% 5% 0% |
20% 5% 0% |
| Fractions: Standard Reduced |
1 / 6 1 / 21 |
1 / 6 1 / 21 |
| Cash accounting & annual accounting: Taxable turnover upper limit for joining Taxable turnover exit threshold |
£1,350,000 £1,600,000 |
£1,350,000 £1,600,000 |
| Flat rate scheme: Taxable turnover upper limit for joining Anniversary test: leave if total income (incl. exempt) greater than stay if total income in next 12 months will be less than |
£150,000 £230,000 £191,500 |
£150,000 £230,000 £191,500 |
| Flat rate scheme Limited Cost Trader (LCT): LCT applies if spend on relevant goods in the quarter is: Less than total income (incl. exempt) x OR, less than LCT rate (reduce by 1% first 12 months of registration) |
2% £250 16.5% |
2% £250 16.5% |
| Partial exemption de-minimis: recover VAT if input VAT attributable to exempt supplies is: on average less than and, as a proportion of total input VAT is no more than |
£625 per month 50% |
£625 per month 50% |
Stamp Duties & ATED
| Stamp Duty | 2024-25 | 2023-24 |
| Newly issued shares | 0% | 0% |
| Stocks and marketable securities with consideration over £1,000 | 0.5% | 0.5% |
| Stamp Duty Land Tax: residential property | 2024-25 | 2023-24 |
| First-time buyers where cost of property < £625,000:
£0 – £425,000 £425,000 – £625,000 If the cost is more than £625,000 then the normal rates apply. |
0%
5%
|
0%
5%
|
| £0 – £250,000 | 0% | 0% |
| £250,001 – £925,000 | 5% | 5% |
| £925,001 – £1,500,000 | 10% | 10% |
| £1,500,001 + | 12% | 12% |
| Supplement for second home/buy-to-let and companies Not applicable if consideration less than |
3% £40,000 |
3% £40,000 |
| Higher rate for non-natural person with non-qualifying activity (applies to companies, partnerships with a company partner and collective investment schemes) |
15% if >£500,000 | 15% if >£500,000 |
| Surcharge for non-UK residents | 2% | 2% |
| Stamp Duty Land Tax: non-residential or mixed property | 2024-25 | 2023-24 |
| £0 – £150,000 | 0% | 0% |
| £150,001 – £250,000 | 2% | 2% |
| £250,001 + | 5% | 5% |
| Qualifying purchases in Freeport tax sites and Investment Zones are eligible for full relief from SDLT. | ||
| Annual Tax on Enveloped Dwellings | 2024-25 | 2023-24 |
| Applies if market value on valuation date exceeds | £500,000 | £500,000 |
| Valuation dates | 1 April 2022 | 1 April 2022 |
| Annual charge if taxable value is £500,001 – £1,000,000 | £4,400 | £4,150 |
| £1,000,001 – £2,000,000 | £9,000 | £8,450 |
| £2,000,001 – £5,000,000 | £30,550 | £28,650 |
| £5,000,001 – £10,000,000 | £71,500 | £67,050 |
| £10,000,001 – £20,000,000 | £143,550 | £134,550 |
| £20,000,001 + | £287,500 | £269,450 |
Note:
Different rates for devolved Land and Buildings Transactions Tax rates and bands apply in Scotland & devolved Land Transaction Tax in Wales.
Corporation Tax
| Corporation Tax | 2024-25 | 2023-24 |
| Small profits rate (profits < lower limit below) | 19% | 19% |
| Main rate (profits > upper limit below) | 25% | 25% |
| Marginal relief lower limit
Marginal relief upper limit Reduced for short accounting periods and associated companies |
£50,000
£250,000
|
£50,000
£250,000
|
| Marginal relief standard fraction | 3/200 | 3/200 |
| Effective marginal rate | 26.5% | 26.5% |
| s.455 tax on loans to participators | 33.75% | 33.75% |
| Patent box and R&D | 2024-25 | 2023-24 |
| Patent box effective rate | 10% | 10% |
| Research and Development (R&D) capital expenditure relief | 100% | 100% |
| R&D total enhanced deduction for SMEs | N/A | 186% |
| R&D tax credit rate on the surrendable loss for SMEs.
Payable tax credit in a year exceeding £20,000 is restricted to £20,000 + 3x total PAYE Income Tax and NICs liability. |
N/A | 10% |
| R&D large company above the line credit (Research and development expenditure credit (RDEC)) | N/A | 20% |
| R&D merged scheme from 1 April 2024, above the line credit
Notional tax rate for loss-making companies |
20%
19% |
N/A
N/A |
| R&D intensive SME payable credit
(Where qualifying R&D expenditure is >40% (>30% from 1 April 2024) of total expenditure) |
14.5% | 14.5% |
| Other reliefs | 2024-25 | 2023-24 |
| Film tax relief | 25% or 34% | 25% or 34% |
| High-end TV tax relief | 25% or 34% | 25% or 34% |
| Video games tax relief | 25% or 34% | 25% or 34% |
| Animation tax relief | 25% or 39% | 25% or 39% |
| Children’s TV tax relief | 25% or 39% | 25% or 39% |
| Note: From 1 January 2024 the Audio-Visual Expenditure Credit (AVEC) and Video Games Expenditure Credit (VGEC) were implemented. The VGEC has a rate of 34%. Under the AVEC, film and high-end TV will be eligible for a rate of 34% and animation and children’s TV will be eligible for a rate of 39%. | ||
| Cultural reliefs | ||
| Museums and galleries exhibition tax relief | 45% or 50% | 45% or 50% |
| Theatre tax relief | 45% or 50% | 45% or 50% |
| Orchestra tax relief | 50% | 50% |
National Insurance Contributions
Class 1 (employers & employees)
Thresholds
| 2024-25 | 2023-24 | |||||
| Weekly | Monthly | Yearly | Weekly | Monthly | Yearly | |
| Lower earnings limit | £123 | £533 | £6,396 | £123 | £533 | £6,396 |
| Primary threshold | £242 | £1,048 | £12,570 | £242 | £1,048 | £12,570 |
| Upper earnings limit | £967 | £4,189 | £50,270 | £967 | £4,189 | £50,270 |
| Secondary threshold | £175 | £758 | £9,100 | £175 | £758 | £9,100 |
| Freeport upper secondary threshold | £481 | £2,083 | £25,000 | £481 | £2,083 | £25,000 |
| Upper secondary threshold (under 21) | £967 | £4,189 | £50,270 | £967 | £4,189 | £50,270 |
| Apprentice (under 25) upper secondary threshold | £967 | £4,189 | £50,270 | £967 | £4,189 | £50,270 |
| Veterans’ upper secondary threshold | £967 | £4,189 | £50,270 | £967 | £4,189 | £50,270 |
| Investment Zone upper secondary threshold | £481 | £2,083 | £25,000 | £481 | £2,083 | £25,000 |
Employment Allowance
| 2024-25 | 2023-24 | |
| Employment Allowance | £5,000 | £5,000 |
| The Employers’ National Insurance Contributions (NICs) allowance is an allowance given to small and medium-sized employers (SMEs) to offset against their annual Employers’ National Insurance liabilities.
|
||
Rates
| 2024-25 | 2023-24 | |
| Employees’ main rate (primary threshold to upper earnings limit)
6 April 2023 to 5 January 2024 6 January 2024 to 5 April 2024 6 April 2023 to 5 April 2024 (annual: directors) |
8% |
12% 10% 11.5% |
| Employees’ lower rate (above upper earnings limit) | 2% | 2% |
| Employers’ rate* | 13.8% | 13.8% |
| Married women’s reduced rate between primary threshold and upper earnings limit
6 April 2023 to 5 January 2024 6 January 2024 to 5 April 2024 |
1.85% |
5.85% 3.85% |
| Married women’s rate above upper earnings limit | 2% | 2% |
*No employer’s NIC on employees under 21, apprentices under 25, Freeport
and Investment Zone employees and veterans in the first year, up to relevant
upper secondary thresholds.
| Classes 1A and 1B (employers)
|
2024-25 | 2023-24 |
| Class 1A | 13.8% | 13.8% |
| Class 1B | 13.8% | 13.8% |
| Classes 2 and 4 (self-employed) | 2024-25 | 2023-24 |
| Class 2 | ||
| Flat rate per week* | £3.45 | £3.45 |
| Share fishermen per week | £4.10 | £4.10 |
| Volunteer development workers per week | £6.15 | £6.15 |
| Small profits threshold | £6,725 | £6,725 |
| Lower profits threshold* | N/A | £12,570 |
| Class 4 | ||
| Profit limits (lower to upper) | £12,570 to £50,270 | £12,570 to £50,270 |
| Rate | 6% | 9% |
| On profits over £50,270 | 2% | 2% |
*Compulsory Class 2 contributions are abolished for 2024-25.
Class 3 (voluntary)
| 2024-25 | 2023-24 | |
| Flat rate per week | £17.45 | £17.45 |
Interest
| Official rate of interest | 2024-25 | 2023-24 |
| Actual and average rate | 2..25% | 2.25% |
Interest on late and early payments
On main taxes, excluding quarterly instalment payments for Corporation Tax:
| From | Late payment | Repayment |
| 22 August 2023 | 7.75% | 4.25% |
| 11 July 2023 | 7.50% | 4.00% |
| 31 May 2023 | 7.00% | 3.50% |
| 13 April 2023 | 6.75% | 3.25% |
| 21 February 2023 | 6.50% | 3.00% |
Rates applying to earlier periods can be found on HMRC’s website. (link) HMRC interest rates for late and early payments – GOV.UK (www.gov.uk)
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