Tax and NIC rates and bands
We set out the rates, bands, thresholds and allowances for different taxes and National Insurance contributions.
Content on this page:
Income tax
Allowances
| Allowances |
2022/23 |
2023/24 |
2024/25 |
| Personal allowance |
£ |
£ |
£ |
| individuals |
12,570 |
12,570 |
12,570 |
| Transferable tax allowance |
|
|
|
| for married couples and civil partners |
1,260 |
1,260 |
1,260 |
| Married couple's allowance |
|
|
|
| for those born before 6 April 1935, maximum amount |
9,415 |
10,375 |
11,080 |
| for those born before 6 April 1935, minimum amount |
3,640 |
4,010 |
4,280 |
| Blind person's allowance |
2,600 |
2,870 |
3,070 |
| Income limit for personal allowance |
100,000 |
100,000 |
100,000 |
| Income limit for married couple’s allowance1 |
31,400 |
34,600 |
37,000 |
| Dividend allowance2 |
2,000 |
1,000 |
500 |
| Personal savings allowance3 |
|
|
|
| Basic rate taxpayers |
1,000 |
1,000 |
1,000 |
| Higher rate taxpayers |
500 |
500 |
500 |
1 The married couple’s allowance is reduced, where the taxpayer’s income in the tax year is above the income limit, by £1 for every £2 above the limit until the level of the minimum married couple’s allowance is reached.
2 Any individual who receives dividend income is entitled to a dividend allowance. This is a nil rate band of tax, which means an individual pays no income tax on their dividend income up to the amount of the allowance. It does not reduce the amount of taxable income.
3 Basic rate and higher rate taxpayers (but not additional rate taxpayers) who receive savings income are entitled to a personal savings allowance. This is a nil rate band of tax, which means that basic rate and higher rate taxpayers pay no income tax on £1,000 or £500 of savings income respectively. The personal savings allowance does not reduce the amount of taxable income.
Taxable rates and bands
Income is charged to tax according to the rates and bands in the table(s) below after deducting any allowances (such as the personal allowance and blind person’s allowance) to which the person is entitled.
From April 2016, if you live in Scotland and are a Scottish taxpayer, Scottish rates and bands apply to your non-savings, non-dividend income.
From April 2019, if you live in Wales and are a Welsh taxpayer, Welsh rates and bands apply to your non-savings, non-dividend income.
Below we set out the UK income tax rates first, then Scottish and Welsh rates in separate tables.
UK income tax
|
2022/23 |
2023/24 |
2024/25 |
|||
| Rate | Band | Rate | Band | Rate | Band |
| Starting rate for savings 0% | Up to £5,000 | Starting rate for savings 0% | Up to £5,000 | Starting rate for savings 0% | Up to £5,000 |
| Basic rate 20% | Up to £37,700 | Basic rate 20% | Up to £37,700 | Basic rate 20% | Up to £37,700 |
| Higher rate 40% | £37,701 to £150,000 | Higher rate 40% | £37,701 to £125,140 | Higher rate 40% | £37,701 to £125,140 |
| Additional rate 45% | Over £150,000 | Additional rate 45% | Over £125,140 | Additional rate 45% | Over £125,140 |
Scottish income tax
|
2022/23 |
2023/24 |
2024/25 |
|||
| Rate | Band | Rate | Band | Rate | Band |
| Starter rate 19% | Up to £2,162 | Starter rate 19% | Up to £2,162 | Starter rate 19% | Up to £2,306 |
| Basic rate 20% | £2,163 to £13,118 | Basic rate 20% | £2,163 to £13,118 | Basic rate 20% | £2,307 to £13,991 |
| Intermediate rate 21% | £13,119 to £31,092 | Intermediate rate 21% | £13,119 to £31,092 | Intermediate rate 21% | £13,992 to £31,092 |
| Higher rate 41% | £31,093 to £150,000 | Higher rate 42% | £31,093 to £125,140 | Higher rate 42% | £31,093 to £62,430 |
| Top rate 46% | Over £150,000 | Top rate 47% | Over £125,140 | Advanced rate 45% | £62,431 to £125,140 |
| Top rate 48% | Over £125,140 | ||||
Welsh income tax
|
2022/23 |
2023/24 |
2024/25 |
|||
| Rate | Band | Rate | Band | Rate | Band |
| Basic rate 20% | Up to £37,700 | Basic rate 20% | Up to £37,700 | Basic rate 20% | Up to £37,700 |
| Higher rate 40% | £37,701 to £150,000 | Higher rate 40% | £37,701 to £125,140 | Higher rate 40% | £37,701 to £125,140 |
| Additional rate 45% | Over £150,000 | Additional rate 45% | Over £125,140 | Additional rate 45% | Over £125,140 |
Dividends
|
2022/23 |
2023/24 |
2024/25 |
|||
| Rate | Band | Rate | Band | Rate | Band |
| 8.75% |
Up to £37,700 |
8.75% |
Up to £37,700 |
8.75% |
Up to £37,700 |
| 33.75% |
£37,701 to £150,000 |
33.75% |
£37,701 to £125,140 |
33.75% |
£37,701 to £125,140 |
| 39.35% |
Over £150,000 |
39.35% |
Over £125,140 |
39.35% |
Over £125,140 |
See also Tax on dividends.
National Insurance contributions (NIC)
Class 1 primary NIC (employee)
Thresholds
|
2022/23 |
2023/24 |
2024/25 |
|
|
£ per week |
£ per week |
£ per week |
|
| Lower earnings limit |
123 |
123 |
123 |
| Primary threshold |
190 (6 April – 5 July) 242 (6 July – 5 April) |
242 |
242 |
| Upper earnings limit |
967 |
967 |
967 |
Rates
|
2022/23 |
2023/24 |
2024/25 |
|
| Employee primary Class 1 rate between primary threshold and upper earnings limit |
13.25% (6 April – 5 November) 12% (6 November – 5 April) |
12% (6 April – 5 January) 10% (6 January – 5 April) |
8% |
| Employee primary Class 1 rate above upper earnings limit |
3.25% (6 April – 5 November) 2% (6 November – 5 April) |
2% |
2% |
| Married women's reduced rate between primary threshold and upper earnings limit |
7.1% (6 April – November) 5.85% (6 November - 5 April) |
5.85% (6 April – 5 January) 3.85% (6 January – 5 April) |
1.85% |
| Married women's rate above upper earnings limit |
3.25% (6 April – 5 November) 2% (6 November – 5 April) |
2% |
2% |
For 2022/23, from 6 April 2022 until 5 November 2022, the Class 1 primary rates included an extra 1.25% prior to the planned introduction of the health and social care levy. However, the health and social care levy was abolished and never took effect.
During 2022/23, the earnings level at which you start to pay National Insurance contributions increased. For employees, the increase took effect on 6 July 2022.
In 2023/24, the main rate of employee Class 1 National Insurance contributions was reduced from 12% to 10%, with effect from 6 January 2024. The rate reduced again to 8%, with effect from the start of the new tax year, 6 April 2024.
See NIC for employees.
Class 1 secondary NIC (employers)
Thresholds
|
|
2022/23 |
2023/24 |
2024/25 |
|
|
£ per week |
£ per week |
£ per week |
| Secondary threshold |
175 |
175 |
175 |
Rates
|
2022/23 |
2023/24 |
2024/25 |
|
| Employer secondary Class 1 rate above secondary threshold |
15.05% (6 April – 5 November) 13.8% (6 November – 5 April) |
13.8% |
13.8% |
For 2022/23, from 6 April until 5 November 2022, the Class 1 secondary NIC rate included an extra 1.25% prior to the planned introduction of the health and social care levy. However, the health and social care levy was abolished and never took effect.
Class 2 NIC (self-employed)
|
2022/23 |
2023/24 |
2024/25 | |
|
£ |
£ |
£ |
|
| Class 2 rate per week |
3.15 |
3.45 |
3.45 (voluntary) |
| Class 2 small earnings exception/small profits threshold per year |
6,725 |
6,725 |
6,725 |
| Class 2 lower profits limit per year |
11,908 |
12,570 |
Not applicable |
| Special Class 2 rate for share fishermen per week |
3.80 |
4.10 |
4.10 |
| Special Class 2 rate for volunteer development workers per week |
6.15 |
6.15 |
6.15 |
For 2022/23 and 2023/24, you only pay Class 2 NIC if your profits are more than the lower profits limit. If you have profits between the small profits threshold and the lower profits limit, you will not have to pay Class 2 NIC, but you will be treated as though you have paid it, for the purpose of entitlement to contributory benefits.
For 2024/25 onwards, Class 2 NIC is no longer due, but if you have profits above the small profits threshold you will be treated as though you have paid it for the purpose of entitlement to contributory benefits. If you have profits below the small profits threshold you can continue to pay Class 2 NIC voluntarily to maintain your entitlement to contributory state benefits.
See NIC for the self-employed.
Class 3 NIC (voluntary)
|
2022/23 |
2023/24 |
2024/25 |
|
|
£ per week |
£ per week |
£ per week |
|
| Class 3 rate |
15.85 |
17.45 |
17.45 |
For more information, see our pages on National Insurance.
Class 4 NIC (self-employed)
Thresholds
|
2022/23 |
2023/24 |
2024/25 |
|
|
£ per year |
£ per year |
£ per year |
|
| Class 4 lower profits limit |
11,908 |
12,570 |
12,570 |
| Class 4 upper profits limit |
50,270 |
50,270 |
50,270 |
Rates
|
2022/23 |
2023/24 |
2024/25 |
|
| Class 4 rate between lower profits limit and upper profits limit |
9.73% |
9% |
6% |
| Class 4 rate above upper profits limit |
2.73% |
2% |
2% |
For 2022/23 the Class 4 NIC rates included an extra 1.25% prior to the planned introduction of the health and social care levy. However, the health and social care levy was abolished and never took effect.
See NIC for the self-employed.
Capital gains tax
Rates
|
2022/23 |
2023/24 |
2024/25 |
|
| Standard rate 1 |
10% / 18% |
10% / 18% |
10% / 18% |
| Rate for higher and additional taxpayers |
20% / 28% |
20% / 28% |
20% / 24% |
| Business Asset Disposal Relief rate |
10% |
10% |
10% |
1 Capital gains tax rates of 10% and 20% for disposals on or after 6 April 2016 do not apply to transactions involving residential property. Capital gains tax rates for these transactions are 18% and 28% for years up to and including 2023/24. From 6 April 2024, the rates for residential property are 18% and 24%.
Exemptions
|
2022/23 |
2023/24 |
2024/25 |
|
|
£ |
£ |
£ |
|
| Annual exemption |
12,300 |
6,000 |
3,000 |
| Business Asset Disposal Relief lifetime limit |
1m |
1m |
1m |
See our pages on Capital gains tax.
Inheritance tax
| Chargeable lifetime transfers (after exemptions) | 2022/23 | 2023/24 | 2024/25 |
| Nil rate band – 0% | Up to £325,000 | Up to £325,000 | Up to £325,000 |
| 20% | Over £325,000 | Over £325,000 | Over £325,000 |
| On death (net estate) | |||
| Nil band rate – 0% | Up to £325,000 | Up to £325,000 | Up to £325,000 |
| Residence nil rate band 1 – 0% | Up to £175,000 | Up to £175,000 | Up to £175,000 |
| 40% 2 | Over £325,000 or £500,000 (325,000 + 175,000) | Over £325,000 or £500,000 (325,000 + 175,000) | Over £325,000 or £500,000 (325,000 + 175,000) |
1 The residence nil rate band will be available on the death of an individual if they pass on a property which has been their residence at some point to a direct descendant.
2 There is a reduced rate of 36% for estates that leave 10% or more to charity.
See our page on Inheritance tax.
Other rates
You can view income tax rates and allowances for prior years on GOV.UK
Rates and thresholds for employers: 2024 to 2025: These are the rates and thresholds that employers use when they operate your payroll. They include statutory sick pay and parental pay rates as well as student loan and minimum wage rates.
For other rates and allowances, including in respect of child benefit and tax credits, see Rates and allowances: HM Revenue and Customs (this collection brings together the main rates of tax and duty, interest rates, exchange rates and allowances published by HMRC).
For a list of pension and benefit rates, see GOV.UK.
The auto-enrolment thresholds in 2024/25 can be found on GOV.UK.
