Income Tax rates and allowances - www.rossmartin.co.uk

Income Tax rates and allowances (England)

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Different Income Tax rates and allowances may apply for other parts of the UK, see:

Income Tax: personal allowances and reliefs

Year	2024-25	2023-24	2022-23	2021-22	2020-21	2019-20
Personal allowance PA restricted by £1 for every £2 of income over £100k*	12,570	12,570	12,570	12,570	12,500	12,500
Savings allowance: Basic Rate Higher Rate Additional Rate	1,000 500 0	1,000 500 0	1,000 500 0	1,000 500 0	1,000 500 0	1,000 500 0
Property/Trading allowance**	1,000	1,000	1,000	1,000	1,000	1,000
Blind person's allowance	3,070	2,870	2,600	2,520	2,500	2,450
Transferable marriage allowance (for married couples and civil partners)***	1,260	1,260	1,260	1,260	1,250	1,250
Married Couples Allowance (MCA) (born before 6 April 1935) Max Min up to 10% of the appropriate Max/Min	11,080 4,280	10,375 4,010	9,415 3,640	9,125 3,530	9,075 3,510	8,915 3,450
MCA Limit MCA reduced by £1 for every £2 exceeding limit	37,000	34,600	31,400	30,400	30,200	29,600
Rent-a-room Relief See Rent-a-room Relief	7,500	7,500	7,500	7,500	7,500	7,500

*Personal allowance restriction: by £1 for every £2 of an individual's Adjusted net income above £100,000.

**Property/Trading allowance: Up to £1,000 Trading and property allowances are available for each type of income. Restrictions apply.

***Transferable allowance: a spouse or civil partner who is not liable to Income Tax above the basic rate may transfer their 'Marriage Allowance' which is 10% of their personal allowance (£1,260 for 2024-25 and 2023-24) to their spouse/civil partner, provided that the recipient of the transfer is not liable to Income Tax above the basic rate. Taxpayers have four years in which to make the election.

Past years

	2018-19	2017-18	2016-17	2015-16	2014-15
Personal allowance PA restricted by £1 for every £2 of income over £100K	11,850	11,500	11,000	10,600	10,000
Savings allowance: Basic Rate Higher Rate Additional Rate	1,000 500 0	1,000 500 0	1,000 500 0	N/A	N/A
Property/Trading allowance	1,000	1,000	N/A	N/A	N/A
Blind person's allowance	2,390	2,320	2,290	2,290	2,230
Transferable marriage allowance (for married couples and civil partners)**	1,190	1,150	1,100	1,060	N/A
Married Couples Allowance (MCA) (born before 6 April 1935) Max Min up to 10% of the appropriate Max/Min	8,695 3,360	8,445 3,260	8,355 3,220	8,355 3,220	8,165 3,140
MCA Limit MCA reduced by £1 for every £2 exceeding limit	28,900	28,000	27,700	27,700	27,000
Rent-a-room Relief	7,500	7,500	7,500	7,500	7,500

Income Tax rates

Rate	%	2023-24 & 2024-25	2021-22 & 2022-23	2019-20 & 2020-21	2018-19
Savings rate*	0%	£0 - £5,000	£0 - £5,000	£0 - £5,000	£0 - £5,000
Basic	20%	£0-£37,700	£0-£37,700	£0-£37,500	£0-£34,500
Higher	40%	£37,701 to £125,140	£37,701 to £150,000	£37,501 to £150,00	£34,501 to £150,000
Additional	45%	£125,140+	£150,001+	£150,001+	£150,001+

Past years

Rate	%	2017-18	2016-17	2015-16	2014-15
Savings rate*	0%	£0 - £5,000	£0 - £5,000	£0 - £5,000	n/a
Basic	20%	£0 -£33,500	£0 -£32,000	£0 - £31,785	£0 to £31,865
Higher	40%	£33,501 to £150,000	£32,001 to £150,000	£31,786 to £150,000	£31,866 to £150,000
Additional	45%	£150,001 +	£150,001 +	£150,001 +	£150,001 +

*The 0% savings rate is available where an individual's taxable non-savings income is below this limit: a 0% tax rate applies to savings income up to the limit.

Child Benefit claimants

From 7 January 2013 the High Income Child Benefit Tax Charge provisions clawback Child Benefit payments when a claimant or their partner's income exceeds £50,000.

Dividend tax (from 2016-17)

Rates

Basic rate dividends are taxed at 8.75% (7.5% before 6 April 2022).
Higher rate dividends are taxed at 33.75% (32.5% before 6 April 2022).
Additional rate dividends are taxed at 39.35% (38.1% before 6 April 2022).

Tax-free band

The dividend allowance taxes the first £1,000 (2023-24) of dividends at 0%.
For 2024-25, the dividend allowance decreases to £500.
This allowance was:
- £2,000 for 2018-19 to 2022-23.
- £5,000 for 2016-17 and 2017-18.

Tax rate & effective tax rate on dividends

Rate	2022-23 on	2016-17 to 2021-22	2013-14 to 2015-16
Additional tax rate	45%	45%	45%
Dividend rate	39.35%	38.1%	37.5%
Effective rate	n/a	n/a	30.55%
Higher tax rate	40%	40%	40%
Dividend rate	33.75%	32.5%	32.5%
Effective rate	n/a	n/a	25%
Basic rate	8.75%	7.5%	10%*

* Dividend received net of 10% tax credit. The amount received needs to be grossed up for higher rate taxpayers by multiplying by 10/9. The dividend rate is then applied according to your tax band

Special rates for trustees' income

Rate	2024-25	2022-23 and 2023-24	2016-17 to 2021-22	2013-14 to 2015-16
Dividend rate: within the first £1,000*	N/A	8.75%	7.5%	-
Standard rate: on first £1,000 of other income which would otherwise be taxed at the special rate for trustees*	N/A	Up to 20% depending on type of income
Trust rate: all other income	45%	45%	45%	45%
Dividend trust rate	39.35%	39.35%	38.1%	37.5%

*From April 2024 this rate/band is removed.

See Dividend tax

Pensions: higher rate restrictions

Contribution limits

2023-24 &

2024-25

2020-21 to

2022-23

2019-20

2018-19

2016-17

2014-15 to

2015-16

Annual Allowance

£60,000**

£40,000*

£40,000

Tapered Annual Allowance threshold

£260,000

£240,000

£150,000

n/a

*reduced to as low as £4,000 in some circumstances.

**reduced to as low as £10,000 in some circumstances.

See Pensions: tax rules and planning

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