Income Tax rates and allowances (England)

Click here for National Insurance rates

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

£40,000

£40,000

£40,000

Tapered Annual Allowance threshold

£260,000

£240,000

£150,000

£150,000

£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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