Rates & Allowances

Inheritance Tax		2023-24		2022-23
Nil rate band for individuals*		£325,000		£325,000
Thereafter - lifetime gifts**		20%		20%
- lower rate on death***		36%		36%
- on death		40%		40%
Residence nil rate band****		£175,000		£175,000
* Unused nil rate band can be used by surviving spouse or civil partner. This band is currently frozen until April 2028. ** Increased to 40%, subject to tapering relief, on gifts made between 3 and 7 years pre death. Certain lifetime gifts are exempt. Special rules for business property. *** A lower rate applies where 10% or more of the net estate is left to charity.
**** The inheritance tax main residence nil rate band (MRNRB) came into effect in April 2017. The MRNRB allows for a £175,000 per person transferable allowance for married couples and civil partners when their main residence is passed down to children after their death. The MRNRB is in addition to the £325,000 inheritance tax threshold.
Years before death	0-3	3-4	4-5	5-6	6-7
% of death charge	100%	80%	60%	40%	20%
Main exempt lifetime gifts
Recurring annual gifts out of surplus income				unlimited
Annual gifts out of capital (with one year carry forward if unused)				£3,000
Small gifts (per recipient)				£250
Parental gift on marriage				£5,000
Grandparent or party to marriage				£2,500
Other gifts on marriage (per donor)				£1,000
Business Property Relief
Shares in unquoted companies (including USM/AIM stocks)				100%
Shares in quoted companies
- shareholding up to 50%				none
- shareholding over 50%				50%
Unincorporated business or interest in a business				100%
Land, buildings, plant and machinery used in the deceased’s business/company				50%

National Insurance - Rates and Allowances	2023-24	2022-23
Lower weekly earnings limit, primary Class 1	£123	£123
Upper weekly earnings limit, primary Class 1	£967	£967
Primary weekly earnings threshold	£242	£190 from 6 April 2022 to 5 July 2022 and £242 from 6 July 2022 to 5 April 2023
Secondary weekly earnings threshold	£175	£175
Employees' primary Class 1 rate between primary earnings threshold and upper earnings limit	12%	13.25% - 6/4/22-5/11/22 12.00% - 6/11/22-5/4/23
Employees' primary Class 1 rate above upper earnings limit	2%	3.25% - 6/4/22-5/11/22 2.00% - 6/11/22-5/4/23
Married women's reduced rate between primary earnings threshold and upper earnings limit	5.85%	7.10% - 6/4/22-5/11/22 5.85% - 6/11/22-5/4/23
Married women's rate above upper earnings limit	2%	3.25% - 6/4/22-5/11/22 2.00% - 6/11/22-5/4/23
Employers' secondary Class 1 rate above secondary earnings threshold	13.80%	15.05% - 6/4/22-5/11/22 13.80% - 6/11/22-5/4/23
Class 2 weekly rate	£3.45	£3.15
Class 2 small earnings exception (SPT)	£6,725 per year	£6,725 per year
Class 2 NICs liabilities are reduced to nil on profits between the SPT and lower profits limit
Special Class 2 weekly rate for share fishermen	£4.10	£3.80
Special Class 2 weekly rate for volunteer development workers	£6.15	£6.15
Class 3 voluntary weekly rate	£17.45	£15.85
Class 4 lower profits limit	£12,570 per year	£11,908 per year
Class 4 upper profits limit	£50,270 per year	£50,270 per year
Class 4 rate between lower profits limit and upper profits limit	9%	9.73%
Class 4 rate above upper profits limit	2%	2.73%

  A National Insurance tax free allowance of £5,000 (2022-23: £5,000) is available to offset against employers' Class 1 secondary NICs subject to certain restrictions. The allowance is restricted to employers with employer NIC liabilities of under £100,000. No employers' contributions are payable in respect of weekly earnings up to £967 paid to employees under 21 nor for qualifying apprentices aged under 25. It was announced as part of the Growth Plan 2022 that the 1.25% rise in National Insurance that came into effect on 6 April 2022 will be cancelled from 6 November 2022. The Health and Social Care Levy that was set to be introduced from April 2023 has also been cancelled.

Capital Gains Tax: Individuals and Trustees	2023-24	2022-23
Annual exempt amount
Individuals	£6,000	£12,300
Trusts	£3,000	£6,150
Rates
Standard rate taxpayers	10%	10%
Higher rate taxpayers / Trustees	20%	20%
Business Asset Disposal Relief Rate lifetime limit	£1,000,000	£1,000,000
Business Asset Disposal Relief Rate	10%	10%
Investors' relief lifetime limit	£10,000,000	£10,000,000
Investors' relief rate	10%	10%
* There is an 8% surcharge on the sale of chargeable residential property and carried interest (the share of profits or gains that is paid to asset managers).

Tax Credits	2023-24	2022-23
Basic element – maximum	£2,280	£2,070
Childcare element 70% of eligible costs up to £175 per week for one child, £300 for two or more children.
Child Tax Credits	2023-24	2022-23
Child element per child – maximum	£3,235	£2,935
Family element	£545	£545
If only the child tax credit is claimed, the annual threshold is £18,725 (2022-23: £17,005).

Pension Contributions	2023-24	2022-23
Lifetime allowance	abolished	£1,073,100
Maximum annual allowance*	£60,000	£40,000
Tax on excess	Marginal rate	Marginal rate
Normal minimum pension age for private pensions	55	55 Increasing to 57 from 6 April 2028
Old State pension - per week**	2023-24	2022-23
Single person	£156.20	£141.85
Addition for wife if non-contributor	£93.60	£85.00
New State Pension – per week	2023-24	2022-23
Single person	£203.85	£185.15

  The annual allowance is tapered for taxpayers whose income exceeds £260,000 (2022-23: £240,000). The allowance will reduce by £1 for every £2 that an individual’s income exceeds £260,000 (2022-23: £240,000), down to a minimum of £10,000 (2022-23: £4,000). **Retirees that reached the State Pension age before 6 April 2016, continue to receive the Old State Pension and not the New State Pension.

Bands	2023-24	2022-23
Savings starting rate - 0%*	£1 - £5,000	£1 - £5,000
Basic rate 20%	£1 - £37,700	£1 - £37,700
Higher rate 40%	£37,701 - £125,140	£37,701 - £150,000
Additional rate 45%	Over £125,140	Over £150,000
Scottish rates
Starter rate 19%	£1 - £2,162	£1 - £2,162
Basic rate 20%	£2,163 - £13,118	£2,163 - £13,118
Intermediate rate - 21%	£13,119 - £31,092	£13,119 - £31,092
Higher rate - 42% (2022-23: 41%)	£31,093 - £125,140	£31,093 - £150,000
Additional rate - 47% (2022-23: 46%)	Over £125,140	Over £150,000
Welsh rates
Starter rate 0%*	£1 - £5,000	£1 - £5,000
Basic rate 20%	£1 - £37,700	£1 - £37,700
Higher rate - 40%	£37,701 - £125,140	£37,701 - £150,000
Additional rate - 45%	Over £125,140	Over £150,000

* The savings starting rate does not apply if non-savings income exceeds £5,000.

Dividend allowance	£1,000	£2,000
Dividend ordinary rate	8.75%	8.75%
Dividend upper rate	33.75%	33.75%
Dividend additional rate	39.35%	39.35%
Personal savings allowance
- basic rate taxpayers	£1,000	£1,000
- higher rate taxpayers	£500	£500
Reliefs	2023-24	2022-23
Personal allowance	£12,570	£12,570
Registered blind person's allowance	£2,870	£2,600
Income limit for personal allowance*	£100,000	£100,000

  * The personal allowance is gradually withdrawn by £1 for every £2 of income over £100,000.  

Married couple allowance - tax relief given at 10%
- Born before 6 April 1935	£9,415	£9,125
- Minimum amount*	£3,640	£3,530
- Income limit	£31,400	£30,400
- Marriage allowance*	£1,260	£1,260

  *A tax payer can transfer up to £1,260 (2022-23: £1,260) of their unused personal allowance to a spouse or civil partner who is not a higher rate taxpayer.  

High Income Child Benefit Charge* on income over

£50,000

£50,000

  * The tax charge is levied at the rate of 1% of the full child benefit award for each £100 that income exceeds £50,000, up to a maximum of 100% of the child benefit claimed. Taxpayers can choose whether to continue receiving child benefit and pay the tax charge or may opt out of receiving the child benefit. There is a cap on certain Income Tax reliefs of the greater of £50,000 or 25% of income.

Stamp Duty and Annual Tax on Enveloped Dwellings Shares and securities rate 0.5% The annual tax on Enveloped Dwellings (ATED) is payable by certain non-natural persons that own interests in dwellings valued at more than £500,000. Stamp Duty and Stamp Duty Land Tax (SDLT) Property in England and N. Ireland

Rate	Residential Property
Zero	£0 - £250,000
5%	£250,001 - £925,000
10%	£925,001 - £1,500,000
12%	Over £1,500,000

  The SDLT nil rate band for residential properties increased to £250,000 (from £125,000) on 23 September 2022. This resulted in the removal of the 2% band for properties ranging from £125,000 to £250,000. These changes are temporary and set to revert back to the old rates on 31 March 2025. No SDLT is payable for first-time buyers making a purchase of up to £425,000 (£300,000 up to 22 September 2022). The relief also applies to the first £425,000 (£300,000 up to 22 September 2022) for purchases up to £625,000 (£500,000 up to 22 September 2022). There is no relief available for first-time buyers spending more than £625,000 (£500,000 up to 22 September 2022) on a property. There are a number of requirements that must be met in order to qualify for the relief. These changes are temporary and set to revert back to the old rates on 31 March 2025. There is a 2% surcharge on non-UK residents purchasing residential property. SDLT on non-residential and mixed used properties.

Rate	Non-Residential Property
Zero	£0 - £150,000
2%	£150,001 - £250,000
5%	Over £250,000

The SDLT rates are applied on a graduated basis with the portion of the purchase price within each tier charged at the applicable rate. 15% is applied to residential properties held in a 'corporate envelope' costing over £500,000. Scotland: Land & buildings transaction tax (SLBTT) Property in Scotland

Rate	Residential Property
Zero	£0 - £145,000
2%	£145,001 - £250,000
5%	£250,001 - £325,000
10%	£325,001 - £750,000
12%	Over £750,000

Non-Residential and mixed use properties.

Rate	Non-Residential Property
Zero	£0 - £150,000
1%	£150,001 - £250,000
5 %	Over £250,000

These rates are applied on a graduated basis with the portion of the purchase price within each tier charged at the applicable rate. There is a 6% (4% prior to 16 December 2022) SLBTT supplement for purchases of additional residential properties. There is a First Time Buyers Relief from SLBTT for properties under £175,000 Wales: Land Transaction Tax (WLTT)

Rate	Residential Property
Zero	£0 - £225,000
6%	£225,001 - £400,000
7.5%	£400,001 - £750,000
10%	£750,001 - £1,500,000
12%	Over £1,500,000

There are currently no further measures specifically targeting first-time buyers in Wales. There is a WLTT higher rate supplement of 4% on purchases of additional residential properties. Non-Residential and mixed use properties.

Rate	Non-Residential Property
Zero	£0 - £225,000
1%	£225,001 - £250,000
5%	£250,001 - £1,000,000
6%	Over £1,000,000

These rates are applied on a graduated basis with the portion of the purchase price within each tier charged at the applicable rate.

National Living Wage	2023-24	2022-23
Age 23 & over	£10.42 p.h.	£9.50 p.h.

 

National Minimum Wage	2023-24	2022-23
Aged 21 to 22	£10.18 p.h.	£9.18 p.h.
Aged 18 to 20	£7.49 p.h.	£6.83 p.h.
Aged 16 and 17	£5.28 p.h.	£4.81 p.h.
Apprentice rate	£5.28 p.h.	£4.81 p.h.

Standard rate	20%
Reduced rate	5%
Zero rate	0%
Annual registration limit (from 1 April 2023)	£85,000
Annual deregistration limit (from 1 April 2023)	£83,000
VAT Cash accounting scheme threshold	£1,350,000
VAT Annual accounting scheme threshold	£1,350,000

	FY 2023	FY 2022
Main rate (profits over £250,000 from 1 April 2023)	25%	19%
Small profits rate (profits below £50,000)	19%	-
Marginal relief fraction	3/200	-

  Taxable profits in excess of £250,000 will be taxed at 25%, the main rate. Profits between £50,000 and £250,000 will be subject to a marginal tapering relief which will provide for a gradual increase in the Corporation Tax rate.

Company cars 2023-24​
CO2 emissions	Electric Range (miles)	% of car’s list price taxed	CO2 emissions	Electric Range (miles)	% of car’s list price taxed
(g/km)			(g/km)
0	N/A	2	100 to 104		25
1 to 50	>130	2	105 to 109		26
1 to 50	70-129	5	110 to 114		27
1 to 50	40-69	8	115 to 119		28
1 to 50	30-39	12	120 to 124		29
1 to 50	<30	14	125 to 129		30
51 to 54		15	130 to 134		31
55 to 59		16	135 to 139		32
60 to 64		17	140 to 144		33
65 to 69		18	145 to 149		34
70 to 74		19	150 to 154		35
75 to 79		20	155 to 159		36
80 to 84		21	160 and above		37
85 to 89		22
90 to 94		23
95 to 99		24

  There is a diesel supplement of 4% (2022-23: 4%) for all for all diesel cars that are not certified to the Real Driving Emissions 2 (RDE2) standard. The diesel supplement is removed altogether for diesel cars which are certified to the RDE2 standard. The maximum rate including any diesel supplement remains at 37%. Car fuel benefit £27,800 × ‘appropriate percentage’ (percentage used to calculate the taxable benefit of the car for which the fuel is provided). The charge is proportionately reduced if provision of private fuel ceases part way through the year. The fuel benefit is reduced to nil only if the employee pays for all private fuel.

Cars & Vans - up to 10,000 miles - over 10,000 miles	Rate per mile 2023-24   45p 25p
Motorcycles	24p
Bicycles	20p
These rates represent the maximum tax free mileage allowances for employees using their own vehicles for business. Any excess is taxable. If the employee receives less than the statutory rate, tax relief can be claimed on the difference.

	2023-24	2022-23
Plant and Machinery Main writing down allowance Long life assets, integral fixtures Full expensing - 100% FYA First year allowances – super-deduction First year allowances – special rate	18% 6% 100% - 50%	18% 6% - 130% 50%
R&D tax credits SME scheme R&D expenditure credit Structures and buildings allowance Annual Investment Allowance (AIA)	186% 20% 3% £1,000,000	230% 13% 3% £1,000,000
Cars New and unused, CO2 emissions are 0g/km (or car is electric) Second hand electric car New or second hand, CO2 emissions are 50g/km or less New or second hand, CO2 emissions are over 50g/km

	2023-24	2022-23
ISA limited	£20,000	£20,000
Lifetime ISA	£4,000	£4,000
Junior ISA	£9,000	£9,000
Venture Capital Trusts Income Tax relief of up to 30% on investments up to £200,000.
Enterprise Investment Scheme Income Tax relief of up to 30% on qualifying share subscriptions up to £1,000,000. (Up to £2,000,000 for qualifying investments in knowledge-intensive industries).
Seed Enterprise Investment Scheme Income Tax relief of 50% on maximum investment of £200,000 with rollover of chargeable gains.

Payment Dates	2023-24	2022-23
First interim Income Tax payment	31 January 2024	31 January 2023
Second interim Income Tax payment	31 July 2024	31 July 2023
Final balancing Income Tax payment	31 January 2025	31 January 2023
Capital Gains Tax payment (earlier for taxable sales of UK residential property).	31 January 2025	31 January 2024
Corporation Tax is due 9 months and 1 day after the end of accounting period (or by quarterly instalments if large company).
Issue P60s to employees		31 May 2023
Forms P9D, P11D and P11D(b) – and appropriate copies to employees		06 July 2023
Self Assessment Tax Return – paper version		31 October 2023
Last day to submit 2022-23 tax return online to have unpaid tax of up to £17,000 (depending on income levels) collected through the 2024-25 PAYE code		30 December 2023
Self Assessment Tax Return – online version		31 January 2024