Tax brackets 2023 – our guide to the 23/24 tax year tax rates
Tax brackets for the 2023/24 tax year are updated below, following the Budget on 15 March 2023.
For the 2023/24 tax year, once again many rates remained unchanged, however there were some key changes, including significant reductions in Capital Gains Tax whilst the Pension Annual Allowance is increased to £60,000 and the Money Purchase Annual Allowance (MPAA) rises from £4,000 to £10,000.
Below are the key tax brackets and tax rates that apply for the tax year 2023/24:
Tax brackets for 2023/24 tax year
Income Tax Rates
Income tax rates and bands
| 2023/24 | 2022/23 | ||
| Band | Rate | Band | Rate |
| £0 – 37,700 | 20% | £0 – 37,700 | 20% |
| £37,701 – 125,140 | 40% | £37,501 – 150,000 | 40% |
| Over £125,140 | 45% | Over £150,000 | 45% |
Please note: In Scotland and Wales, income tax rates on income other than savings and dividend income have been devolved.
The income tax Personal Allowance, remains at £12,570 per year (on which no tax is paid).
Savings Income tax allowances
| 2023/24 and 2022/23 | |
| Savings allowance basic rate | £1,000 |
| Savings allowance higher rate | £500 |
Additional-rate taxpayers receive no allowance.
Please note: A starting rate of 0% may be available unless taxable non-savings income exceeds £5,000.
Dividend Income tax brackets
| 2023/24 | 2022/24 | |
| Dividend allowance | £1,000 | £2,000 |
| Dividend ordinary rate | 8.75% | 8.75% |
| Dividend upper rate | 33.75% | 33.75% |
| Dividend additional rate | 39.35% | 39.35% |
Tax brackets 2023/24 for Income Tax Reliefs
| 2023/24 | 2022/23 | |
| Personal allowance | £12,570 | £12,570 |
| Personal allowance income limit | £100,000 | £100,000 |
| Marriage allowance Transferable between certain spouses where neither pay tax above the basic rate | £1,260 | £1,260 |
| Married couple’s allowance (relief given at 10%) | £10,375 | £9,415 |
| Either partner born before 6 April 1935 | ||
| Minimum amount | £4,010 | £3,640 |
| Income limit | £35,600 | £31,400 |
| Blind persons allowance | £2,870 | £2,600 |
Car, Van and Fuel Benefit
| 2024/24 | |
| CO2 emissions g/km | % of list price taxed |
| 0 | 2 |
| 1 – 50 | |
| Electric Range – 130 or more | 2 |
| Electric Range – 70 – 129 | 5 |
| Electric Range – 40 – 69 | 8 |
| Electric Range – 30 – 39 | 12 |
| Electric Range – under 30 | 14 |
| 51 – 54 | 15 |
| For every extra 5 | +1 |
| 160 and above | 37 |
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 if the CO2 figure does not end in a 5 or 0 round down to the nearest 5 or 0.
| 2022/23 | |
| Car fuel benefit | £27,800 |
| Van benefit | £3,860 |
| Van fuel benefit | £757 |
National Insurance tax brackets 2023/24
Class 1 (employed) rates
For employees
| Employees | |
| Up to £242 | 0% |
| £240.01 – £967 | 12% |
| Over £967 | 2% |
For employers
| Employers | |
| Up to £175 | 0% |
| Over £170 | 13.8% |
Please note: Entitlement to contribution-based benefits for employees retained for earnings between £123 and £242 per week. The employer rate is 0% for employees under 21 and apprentices under 25 on earnings up to £967 per week.
| Class 1A (employers) | On employee taxable benefits | 13.8% |
| Class 1B (employers) | On PAYE Settlement Agreements | 13.8% |
| Class 2 (Self-employed) | Zero on profits between £6,725 and £12,570 plus £3.45 per week where profits over £12,570 | |
| Class 3 (voluntary) | Flat rate per week | £17.45 |
| Class 4 (self-employed) | On profits between £12,570 – £50,270 Excess over £50,270 | 9% 2% |
Stamp Duty Land Tax – tax brackets 2023/24 tax year
Please note: Land and buildings in England and N. Ireland. Residential rates increase by 3% when further residential properties are acquired.
| Residential Stamp Duty rates | |
| Property or lease premium or transfer value | SDLT rate |
| Up to £250,000 | Zero |
| The next £675,000 (the portion from £250,001 to £925,000) | 2% |
| The next £675,000 (the portion from £250,001 to £925,000) | 5% |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 10% |
| The remaining amount (the portion above £1.5 million) | 12% |
First-time Buyer relief may be applicable to residential purchases up to £500k
| Non-residential Stamp Duty rates | |
| Property or lease premium or transfer value | SDLT rate |
| £0 – £150,000 | Zero |
| £150,001 to £250,000 | 2% |
| Over £250,000 | 5% |
Capital Gains Tax
| Capital Gains Tax | 2023/24 | 2023/23 |
| Individuals | ||
| Exemption | £6,000 | £12,300 |
| Standard rate | 10% | 10% |
| Higher/additional rate | 20% | 20% |
| Trusts | ||
| Exemption | £3,00 | £6,150 |
| Rate | 20% | 20% |
Higher rates (18/28%) often apply to the disposal of certain residential property and carried interest.
Business Asset Disposal Relief
The first £1m of qualifying gains are charged at 10%.
Inheritance Tax Brackets
| Death rate | Lifetime rate | Chargeable transfers 2023/24 and 2022/23 |
| Nil | Nil | £0 – £325,000 (nil rate band) |
| 40% | 20% | Over £325,000 |
A further nil rate band of £175,000 may be available in relation to current or former residences.
Corporation Tax Brackets
| Year to 31.3.24 | Profits Band | Percentage Rate |
| Small profits Rate | £0 – £50,000 | 19% |
| Marginal Rate | £50,001 – £250,000 | 26.5% |
| Main Rate | Over £250,000 | 25% |
| Marginal Relief Fraction | 3/200 |
Capital Allowances
| Corporation Tax First Years Allowance (FYA) Full expensing on certain new unused P&M from 01.04.2023 | 100% |
| First Year Allowance (FYA) on certain plant, machinery and cars of 0g/km | 100% |
| Corporation tax FYA on long-life assets, integral features of buildings, etc. (from 01.04.2023) | 50% |
| Annual Investment Allowance (AIA) | £1,000,000 – excludes cars |
Writing Down Allowance
| Long-life assets, integral features of buildings, cars over 50g/km | 6% |
| Other plant and machinery | 18% |
| Structures and Buildings Allowance | 3% |
Pensions
| 2023/24 | 2022/23 | |
| Lifetime Allowance Limit | 1,073,100 | £1,073,100 |
| Annual Allowance Limit | £60,000 | £40,000 |
| Money Purchase Annual Allowance | £10,000 | £4,000 |
Value Added Tax
| From 01.04.23 | From 01.04.22 | |
| Standard rate | 20% | 20% |
| Reduced rate | 5%* | 5% |
| Annual Registration Limit | £85,000 | £85,000 |
| Annual Deregistration Limit | £83,000 | £83,000 |
Selected Rates
| Weekly benefit | 2023/24 | 2022/23 |
| Basic State Pension | £203.85 | £185.15 |
| Old State Pension | £156.20 | £141.85 |
| Statutory pay standard rates | 2023/24 | 2023/24 |
| Lower earnings Limit | £123 or over | £123 or over |
| Sick Pay | £109.40 | £99.35 |
| Maternity/Adoption Pay | £172.48 | £156.66 |
| Shared Parental Pay | £172.48 | £156.66 |
| Paternity Pay | £172.48 | £156.66 |
National Living Wage and National Minimum Wage
| Age | NLW | 21 – 22 | 18 – 20 | 16 – 17 | Apprentices |
| From 1 April 2022 | £10.42 | £10.18 | £67.49 | £5.28 | £5.28 |
Applies to apprentices under 19, or 19 and over in the first year of apprenticeship. NLW applies to those aged 23 and over
Key Tax Dates and Deadlines 2023/24
April 2023
- 05/04/23: The 2023/24 tax year ends
- 06/04/23: The 2023/24 tax year begins
July 2023
- 31/06/23: The second Payment on Account (POA) re Income Tax 2022/23
- 05/06/23: The deadline for Self Assessment registration re notifying chargeability of Income Tax/Capital Gains Tax for the 2022/23 tax year
October 2023
- 19/10/23: The deadline for postal payments re CIS, Class 1 B NICs and PAYE to HMRC
- 22/10/23: The deadline for electronic remittance re CIS, Class 1 B NICs and PAYE to HMRC
- 31/10/23: The deadline for HMRC to receive postal submission re Self Assessment tax returns for tax year ended 05/04/23
December 2023
- 31/12/2023: The due date for limited companies to file company accounts with Companies House 31 March 2023 year end
January 2024
- 14/01/2024: The income tax due date for CT61 period to 31/12/23
- 31 /01/2024: The deadline for filing Self Assessment tax returns for the tax year ended 05/04/2023 and 2023/24 CGT
- 31/01/2024: The balancing payment of tax due for 2022/23 and the first Payment on Account for Income Tax for 2023/24
April 2024
- 05/04/24: The 2023/24 tax year ends
- 06/04/24: The 2024/25 tax year begins
*Please note:
For residential properties sold on or after 27 October 2021, Capital Gains Tax needs to be reported to HMRC and paid within 60 days of completion of a sale. Previously, for the period on or after 6 April 2020, this was within 30 days of completion.
Please note: all rates quoted are for guidance only and are believed to be correct as of 20 March 2023. These rates may be subject to change without notice.
No responsibility for loss occasioned by any person acting/refraining from action because of this information can be accepted.
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