Income Tax Rates and Allowances for 2024/25 (UK)

The new tax year started on April 6th, 2024. Here's a breakdown of income tax rates and allowances for residents across the UK:

Income Tax Rates

England, Northern Ireland & Wales:

Scotland:

Personal Allowances (Applies to all UK):

• The standard personal allowance for 2024/25 is £12,570. This amount decreases for those with adjusted net income exceeding £100,000.

• Marriage Allowance: Individuals can transfer 10% of their personal allowance to their spouse/civil partner (up to £1,260 for 2024/25).

• Married Couple's Allowance: Available for couples where at least one partner was born before April 6th, 1935. The allowance starts at £11,080 and reduces for income exceeding £37,000 (minimum allowance is £4,280).

Other Allowances (Applies to all UK):

• Dividend Allowance: All individuals receive a £500 allowance for dividends in 2024/25.

• Savings Allowance:

  • Basic rate taxpayers: £1,000

  • Higher rate taxpayers: £500

  • Additional rate taxpayers: £0

• Savings Starting Rate Band: Savings income up to £5,000 is taxed at 0%.

Capital Gains Tax (Applies to all UK):

• Annual exempt amount: £3,000

• Capital gains tax rate:

  • Up to basic rate band (£37,700): 10%

  • Above basic rate band: 20%

• Higher rates apply to residential property gains (18% and 24%).

Remember: This is a general overview. It's always best to consult with a tax advisor for personalised advice based on your specific circumstances.