Tax Rates 2023/24

Personal Tax allowance

The personal allowance is the amount earnt before income tax becomes due.

The personal allowance is £12,570 for those earning less that £100,000.

If you earn between £100,000 and £125,000, the allowance reduces by £1 for every £2 earnt above £100,000 until it reaches 0

If earnings are over £125,000, you will not have any personal allowance.

Income tax rates

This is the rate of tax on earnt income, which may include income from employment, self-employment, pensions and rental income.

Band	Income level	Tax Rate
Personal Allowance	£12,570	0%
Basic Rate	£12,571 to £50,270	20%
Higher Rate	£50,271 to £125,140	40%
Additional Rate	Over £125,140	45%

Savings Allowances

The savings allowance allows you to earn interest on savings without paying tax. The amount of interest tax free depends on your income band level. Interest earnt over this will be taxed at your income tax rate.

Note savings in ISA's are exempt from tax and should not be included.

Income Band	Allowance
​Starting rate (income less than £17,570)	£5,000
Basic rate	£1,000
Higher rate	£500
Additional rate	£0

Student Loans

Plan	Threshold for repayment	Repayment rate
Plan 1	£22,015	9%
Plan 2	£27,295	9%
Postgraduate loan	£21,000	6%
Plan 4	£25,375	9%

Corporation tax rate

Corporation tax is the tax rate companies pay on all profits after allowances. This has increased this period for businesses with profits over £50,000.

Band	Limits	Tax rate
Small Profits Rate	Up to £50,000	19%
Marginal Releif	Between £50,000 and £250,000	Marginal relief at 3/200 (26.5%)
Main Rate	Over £250,000	25%

Dividend tax rates

There is a £2,000 tax free allowance for dividends, after which tax will be charged at the following rates depending on your income tax band.

Note dividends from a stocks and shares ISA are tax free and should not be included.

Tax Band	Tax rate
Basic rate	8.75%
Higher rate	33.75%
Additional rate	39.35%

Capital Gains tax

The Annual exempt amount is £6,000, after which tax is charged at the following rates depending on tax bracket. Note that the disposal of rental properties has a different rate to other gains.

Tax Bracket	Tax rate
Basic rate	10%
Higher rate	20%
Basic rate (Property)	18%
Higher rate (Property)	28%
Gains qualifying for entrepreneurs' releif	10%

Allowances

Marriage allowance - £1,260

Married Couples Allowance - £10,375

Blind person's allowance - £2,870

Pension contribution maximum allowance - £60,000

VAT

The threshold for VAT registration is £85,000 in any 12month period.