Income Tax – England and Northern Ireland
Income Tax – England and Northern Ireland
| Rates Of Tax | 2023/2024 | 2024/2025 |
|---|---|---|
| Starting rate for savings (Restricted to savings income only and not available if taxable non-savings income exceeds starting rate band.) | 0% | 0% |
| Basic rate | 20% | 20% |
| Higher rate | 40% | 40% |
| Additional rate | 45% | 45% |
| Dividends: | ||
| For basic rate taxpayers | 8.75% | 8.75% |
| For higher rate taxpayers | 33.75% | 33.75% |
| For additional rate taxpayers | 39.35% | 39.35% |
| Starting-rate limit (for savings income) | £5,000 | £5,000 |
| Threshold of taxable income above which higher rate applies | £37,700 | £37,700 |
| Threshold of taxable income above which additional rate applies | £125,140 | £125,140 |
| Threshold above which child benefit charge applies (1% of benefit for every £200 of income over): | £50,000 | £60,000 |
| Trusts | ||
| De minimis amount for trusts (split between trusts created by the same Settlor - subject to a minimum of 1/5th) |
N/A | £500 |
| Standard rate band (split between trust created by the same Settlor, subject to a minimum of 1/5th of the full amount) |
£1,000 | N/A |
| Rate applicable to trusts: - Dividends | 39.35% | 39.35% |
| Other income | 45% | 45% |
| Personal Allowances | ||
| Personal Allowance | £12,570 | £12,570 |
| Income limit for Personal Allowance | £100,000 | £100,000 |
| Personal Savings Allowance: | ||
| For basic rate taxpayers | £1,000 | £1,000 |
| For higher rate taxpayers | £500 | £500 |
| For additional rate taxpayers | NIL | NIL |
| Dividend Allowance (at 0%) | £1,000 | £500 |
| Marriage Tax Allowance (for spouse/civil partners born on or after 6 April 1935) | Up to £1,260 | Up to £1,260 |
| Married Couple's Allowance (maximum) at 10% † | £10,375 | £11,080 |
| Married Couple's Allowance (minimum) at 10% † | £4,010 | £4,280 |
| Income limit for age-related allowances *(applies to married couples allowance only) | £34,600* | £37,000* |
| § The Personal Allowance reduces by £1 for every £2 of income above the income limit irrespective of age.
† Where at least one spouse/civil partner was born before 6 April 1935.
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| Enterprise Investment Scheme relief limit on £1,000,000 max | 30% | 30% |
| Seed Enterprise Investment relief limit on £200,000 | 50% | 50% |
| Venture Capital Trust relief limit on £200,000 max | 30% | 30% |