This is our 2023-24 year-end and new tax year checklist and toolkit for private clients. It can be used in conjunction with our checklists for directors, employers and self-employed individuals. 

A guide for subscribers. 

What's New?

Tax Year 2023-24: rates & allowances

Notable changes from 6 April 2023: 

Income Tax

  • The additional rate threshold was reduced from £150,000 to £125,140.
  • The dividend allowance reduced from £2,000 to £1,000. 
  • The individual annual investor limit for Seed Enterprise Investment Scheme (SEIS) relief of £100,000 doubled to £200,000. 
  • Social Investment Tax Relief (SITR) expired on 6 April 2023. 
  • Pensions: 
    • The lifetime allowance charge is abolished.
    • For those without lifetime allowance protections, the tax-free lump sum will be limited to 25% of the previous lifetime allowance limit: £268,275.
    • The annual allowance increased to £60,000.
    • The tapered annual allowance and money purchase annual allowance is increased to £10,000.

Capital Gains Tax (CGT)

  • The annual exempt amount was reduced from £12,300 to £6,000. 
  • The trust annual exempt amount remains at 50%. This reduced to £3,000.

National Insurance (NI)

  • From 6 January 2024, the main rate of employee Class 1 NICs is reduced by 2%, from 12% to 10%. A blended 11.5% rate applies to directors. 

Welsh Income Tax

As announced at the 2022 Welsh budget, for 2023-24:

  • The Welsh Rates of Income Tax rate remain at 10%.
  • This retains parity between the rates of Income Tax in Wales and England/Northern Ireland for the 2023-24 tax year, with rates being 20%, 40% and 45%. 

See Welsh Income Tax

Scottish Income Tax 

From 6 April 2023:

  • The Higher rate of Income Tax increased from 41% to 42%.
  • The Top rate of Income Tax increased from 46% to 47%.
  • In line with the rest of the UK, the Top rate threshold decreased to £125,140.

See Scottish Income Tax

Gift Aid

From 15 March 2023:

  • Gift Aid donations only qualify for tax relief where they are made to UK charities and Community Amateur Sports Clubs (CASCs).
  • This stops EU and EEA charities and CASCs that HMRC has not previously accepted as qualifying for charitable relief from claiming UK tax reliefs now that the UK has exited the EU.
  • EU and EEA charities that HMRC has previously accepted as qualifying for relief will have a transitional period until 5 April 2024. 

See Gift Aid: How it works

Capital Gains Tax (CGT): transfer of assets between spouses and civil partners in the process of separating

From 6 April 2023: 

  • Under Finance (No.2) Act 2023, separating spouses or civil partners are given up to three years after the tax year in which they cease to live together to make no gain/no loss transfers.
  • No gain/no loss treatment will be extended further where assets are transferred between separating spouses or civil partners as part of a formal divorce agreement. In such cases, the transfer will be at no gain/no loss for CGT purposes regardless of when it occurs.
  • A spouse or civil partner who moves out of the former matrimonial home, but retains an interest in it, will be given an option to claim Private Residence Relief (PRR) for the period after moving out, when it is sold to a third party.
  • Individuals who have transferred their interest in the marital home to their ex-spouse or civil partner and in return are entitled to receive a proportion of the eventual sale proceeds when it is sold will be able to apply PRR to those proceeds, when received, in the same proportion that applied, or would have applied, when they transferred their original interest in the home to their ex-spouse or civil partner. 

See Divorce & Separation: Toolkit

Capital Gains Tax (CGT): LLPs and Scottish partnerships disposing of joint interests in land

From 6 April 2023:

  • Under Finance (No.2) Act 2023, Rollover Relief for exchanges of joint interests in land will be available for Limited Liability Partnerships and Scottish Partnerships as it would be if the land was held by the individual partners.

See Rollover Relief: Exchanges of joint interests in land

Inheritance Tax (IHT): bands

  • The Inheritance Tax nil-rate bands are frozen until April 2028.
    • The standard nil-rate band remains at £325,000.
    • The residence nil-rate band remains at £175,000.
    • The residence nil-rate band taper continues to start at £2 million. 

See IHT: Transferable Nil-Rate BandIHT: Main Residence Nil-Rate Band (RNRB), and IHT rates and allowances

Stamp Duty Land Tax (SDLT)

From 1 April 2023:

  • No changes to SDLT rates & allowances.

See SDLT: At a glance, Stamp Duty Land Tax, rates & allowances