Tax Help

If you are looking for a quick answer regarding tax rates, limits and allowances for the current tax year 2023/2024 please check below tables, however the tables are not a substitute for a proper conversation with an accountant.

The general information provided on this page is not a complete and exhaustive guide to the UK Tax System. Therefore it should not in any way be taken as advice on your personal circumstances. Please book an appointment with one of our tax or accounting professionals for specific advice regarding your situation.

Income tax allowances
and bands

Please note it is taxable income which applies in this assessment, including earnings, pensions in payment, cash interest, fixed interest income, dividends and rent. ISA income is not included.

Income tax – main personal allowances

  
      ALLOWANCE
      2023/24
    
      Personal Allowance
      £12,570
    
      Transferable tax allowance for married couples/civil partners
      £1,260
    
      Personal Savings Allowance (PSA)
      £1,000 for Basic rate taxpayers
    
      £500 for Higher rate taxpayers
    
      Not available for Additional rate taxpayers
    
      Dividend Allowance
      £1,000

ALLOWANCE	2023/24
Personal Allowance	£12,570
Transferable tax allowance for married couples/civil partners	£1,260
Personal Savings Allowance (PSA)	£1,000 for Basic rate taxpayers
	£500 for Higher rate taxpayers
	Not available for Additional rate taxpayers
Dividend Allowance	£1,000

A Married Couple’s allowance (born pre 6/4/35) or Blind Person’s allowance may also apply.

The transferrable tax allowance only applies where neither individual is a higher or additional rate tax payer. The maximum tax reduction available is £252.

The personal allowance reduces by £1 for every £2 of income above £100,000. The personal allowance is lost if taxable income exceeds £125,140 (2023/24).

Income tax – bands (after any personal allowance) UK excluding Scottish Earned or Pension Income

  
    
      Rate
      Tax Band
      Income Tax rate
      Divident Tax rate
    

      Starting Rate for Savings
      £0 – £5,000
      10%
      N/A
    

      Basic Rate
      £0 – £37,700
      20%
      8.75%
    

      Higher Rate
      £37,701 – £125,140
      40%
      33.75%
    

      Additional Rate
      £125,141+
      45%
      39.35%
    

Rate	Tax Band	Income Tax rate	Divident Tax rate
Starting Rate for Savings	£0 – £5,000	10%	N/A
Basic Rate	£0 – £37,700	20%	8.75%
Higher Rate	£37,701 – £125,140	40%	33.75%
Additional Rate	£125,141+	45%	39.35%

Higher rate threshold (standard personal allowance + basic rate band) is £50,270.

Non-savings income uses up the starting rate for savings.

2023/24 Capital gains tax rates
(non-business assets)

  
      CAPITAL GAINS
      TAX RATE
    
      Gains which when added to taxable income fall in the UK basic rate tax band 10%
      10%
    
      Transferable tax allowance for married couples/civil partners
      20%

CAPITAL GAINS	TAX RATE
Gains which when added to taxable income fall in the UK basic rate tax band 10%	10%
Transferable tax allowance for married couples/civil partners	20%

Capital gains on residential property which is not a main residence will be taxed at 18% and 28% instead of 10% and 20%.

Entrepreneurs’ Relief
(Business assets)

Business assets are generally a share (or interest) in the company or firm you work for. Entrepreneurs’ Relief is subject to meeting certain criteria.

Visit HMRC WEbsite

Inheritance tax (IHT)

  
      VALUE OF ESTATE
      TAX RATE
    
      £1 – £325,000 (known as IHT threshold or nil rate band)
      0%
    
      Over £325,000
      40%

VALUE OF ESTATE	TAX RATE
£1 – £325,000 (known as IHT threshold or nil rate band)	0%
Over £325,000	40%

  
      TAX YEAR
      RESIDENCE NIL RATE BAND
    
      2018/19
      £125,000
    
      2019/20
      £150,000
    
      2020/21
      £175,000
    
      2021/22
      £175,000
    
      2023/24
      £175,000

TAX YEAR	RESIDENCE NIL RATE BAND
2018/19	£125,000
2019/20	£150,000
2020/21	£175,000
2021/22	£175,000
2023/24	£175,000

PLEASE VISIT THE HMRC WEBSITE FOR MORE INFORMATION

National Insurance contributions

Class 1 employed (2023/24)

  
      Earnings per week
      Employee Rate
    
      £0 to £242
      Nil
    
      £243 to £967
      12%
    
      £967 and over
      2%

Earnings per week	Employee Rate
£0 to £242	Nil
£243 to £967	12%
£967 and over	2%

  
      Earnings per week
      Employee Rate
    
      £0 to £242
      Nil
    
      £243 and over
      13.8%

Earnings per week	Employee Rate
£0 to £242	Nil
£243 and over	13.8%

National Insurance applies to most earned income or benefits in kind. National Insurance rates may be different for certain employees, e.g. if employee is over the State Pension age. No National Insurance paid by employers up to £967 for employees under 21 or apprentices under 25.

Self-employed and voluntary

  
      Type of National Insurance contribution
      Tax rate 2023/24
    
      Class 2 self-employed
      £3.45 per week
    
      Class 2 small profits threshold
      £6,725 per annum
    
      Class 3 voluntary
      £17.45 per week
    
      Class 4 lower profits limit
      £12,570 per annum
    
      Class 4 upper profits limit
      £50,270 per year

Tax Help

Income tax allowances
and bands

Income tax – main personal allowances

Income tax – bands (after any personal allowance) UK excluding Scottish Earned or Pension Income

2023/24 Capital gains tax rates
(non-business assets)

Entrepreneurs’ Relief
(Business assets)

Inheritance tax (IHT)

National Insurance contributions

Class 1 employed (2023/24)

Self-employed and voluntary

Working Hours

Get in Touch

Type of National Insurance contribution	Tax rate 2023/24
Class 2 self-employed	£3.45 per week
Class 2 small profits threshold	£6,725 per annum
Class 3 voluntary	£17.45 per week
Class 4 lower profits limit	£12,570 per annum
Class 4 upper profits limit	£50,270 per year

Tax Help

Income tax allowances and bands

Income tax – main personal allowances

Income tax – bands (after any personal allowance) UK excluding Scottish Earned or Pension Income

2023/24 Capital gains tax rates (non-business assets)

Entrepreneurs’ Relief(Business assets)

Inheritance tax (IHT)

National Insurance contributions

Class 1 employed (2023/24)

Self-employed and voluntary

Working Hours

Get in Touch

Income tax allowances
and bands

2023/24 Capital gains tax rates
(non-business assets)

Entrepreneurs’ Relief
(Business assets)