Tax brackets 2024 – our guide to the 24/25 tax year tax rates

Tax brackets for the 2024/25 tax year are updated below, following the Budget on 6 March 2024.

For the 2024/25 tax year, once again many rates remained unchanged, however there were some key changes, including significant reductions again in Capital Gains Tax.

Below are the key tax brackets and tax rates that apply for the tax year 2024/25:

Tax brackets for 2024/25 tax year 

Income Tax Rates

Income tax rates and bands

2024/25 2024/25 
£0 – 37,70020%£0 – 37,70020%
£37,701 – 125,14040%£37,501 – 150,00040%
Over £125,14045%Over £150,00045%

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

2024/25 and 2023/24
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

Dividend allowance£1,000£1,000
Dividend ordinary rate8.75%8.75%
Dividend upper rate33.75%33.75%
Dividend additional rate39.35%39.35%

Tax brackets 2024/25 for Income Tax Reliefs

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%)£11,080£10,375
Either partner born before 6 April 1935
Minimum amount£4,280£4,010
Income limit£37,000£34,600
Blind persons allowance£3,070£2,870

Car, Van and Fuel Benefit

CO2 emissions g/km% of list price taxed
1 – 50
Electric Range – 130 or more2
Electric Range – 70 – 1295
Electric Range – 40 – 698
Electric Range – 30 – 3912
Electric Range – under 3014
51 – 5415
For every extra 5+1
160 and above37

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.

Car fuel benefit£27,800
Van benefit£3,960
Van fuel benefit£757

National Insurance tax brackets 2024/25

Class 1 (employed) rates

For employees

Up to £2420%
£240.01 – £9678%
Over £9672%

For employers

Up to £1750%
Over £17013.8%

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 benefits13.8%
Class 1B (employers)On PAYE Settlement Agreements13.8%
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



Stamp Duty Land Tax – tax brackets 2024/25 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 valueSDLT rate
Up to £250,000Zero
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 valueSDLT rate
£0 – £150,000Zero
£150,001 to £250,0002%
Over £250,0005%

Capital Gains Tax

Capital Gains Tax2024/252023/24
Standard rate10%10%
Higher/additional rate20%20%

Higher rates (18/24%) often apply to the disposal of certain residential property and carried interest. The 24% rate is a reduction from the previous years 28% rate

Business Asset Disposal Relief 

The first £1m of qualifying gains are charged at 10%.

Inheritance Tax Brackets

Death rateLifetime rateChargeable transfers 2024/25 and 2023/24
NilNil£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 BandPercentage Rate
Small profits Rate£0 – £50,00019%
Marginal Rate£50,001 – £250,00026.5%
Main RateOver £250,00025%
Marginal Relief Fraction3/200

Capital Allowances

Corporation Tax First Years Allowance (FYA) Full expensing on certain new unused P&M from 01.04.2023100%
First Year Allowance (FYA) on certain plant, machinery and cars of 0g/km100%
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/km6%
Other plant and machinery18%
Structures and Buildings Allowance3%


Lifetime Allowance Limit1,073,100£1,073,100
Annual Allowance Limit£60,000£60,000
Money Purchase Annual Allowance£10,000£10,000

Value Added Tax

From 06.04.24From 06.04.23
Standard rate20%20%
Reduced rate5%*5%
Annual Registration Limit£90,000£85,000
Annual Deregistration Limit£88,000£83,000

Selected Rates

Weekly benefit2024/252023/24
Basic State Pension£221.20£203.85
Old State Pension£169.50£156.20
Statutory pay standard rates2024/252023/24
Lower earnings Limit£123 or over£123 or over
Sick Pay£116.75£109.40

National Living Wage and National Minimum Wage

AgeNLW (21 and over)18 – 2016 – 17Apprentices
From 1 April 2022£11.44£8.60£6.40£6.40

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 2024/25

April 2024

  • 05/04/24: The 2023/24 tax year ends
  • 06/04/24: The 2024/25 tax year begins

July 2024

  • 31/06/24: The second Payment on Account (POA) re Income Tax 2022/23
  • 05/06/24: The deadline for Self Assessment registration re notifying chargeability of Income Tax/Capital Gains Tax for the 2023/24 tax year

October 2024

  • 19/10/24: The deadline for postal payments re CIS, Class 1 B NICs and PAYE to HMRC
  • 22/10/24: The deadline for electronic remittance re CIS, Class 1 B NICs and PAYE to HMRC
  • 31/10/24: The deadline for HMRC to receive postal submission re Self Assessment tax returns for tax year ended 05/04/24

December 2023

  • 31/12/2024: The due date for limited companies to file company accounts with Companies House 31 March 2024 year end

January 2025

  • 14/01/2025: The income tax due date for CT61 period to 31/12/24
  • 31 /01/2025: The deadline for filing Self Assessment tax returns for the tax year ended 05/04/2024 and 2023/25 CGT
  • 31/01/2025: The balancing payment of tax due for 2022/23 and the first Payment on Account for Income Tax for 2024/25

April 2025

  • 05/04/25: The 2024/25 tax year ends
  • 06/04/25: The 2025/26 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 06 March 2024. 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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