Tax Rates 2024/25
Spring Statement

Income Tax

Allowances 2024/25 2023/24
Personal Allowance (PA)* £12,570 £12,570
Marriage Allowance† 1,260 1,260
Blind Person's Allowance 3,070 2,870
Rent a room relief** 7,500 7,500
Trading income** 1,000 1,000
Property income** 1,000 1,000

*PA is withdrawn at £1 for every £2 by which ‘adjusted income’ exceeds £100,000. There is no allowance given above £125,140.

†The part of the PA that is transferable to a spouse or civil partner who is not a higher or additional rate taxpayer.

** If gross income exceeds this, the limit may be deducted instead of actual expenses.

Rate bands 2024/25 2023/24
Basic Rate Band (BRB) £37,700 £37,700
Higher Rate Band (HRB) 37,701 – 125,140 37,701 – 125,140
Additional rate over 125,140 over 125,140
Personal Savings Allowance (PSA)
– Basic rate taxpayer 1,000 1,000
– Higher rate taxpayer 500 500
Dividend Allowance (DA) 500 1,000

BRB and additional rate threshold are increased by personal pension contributions (up to permitted limit) and Gift Aid donations.

Tax rates 2024/25 2023/24
Rates differ for General/Savings/Dividend income
  G S D G S D
Basic rate % 20 20 8.75 20 20 8.75
Higher rate % 40 40 33.75 40 40 33.75
Additional rate % 45 45 39.35 45 45 39.35

General income (salary, pensions, business profits, rent) usually uses personal allowance, basic rate and higher rate bands before savings income (mainly interest). Scottish taxpayers are taxed at different rates on general income (see below).

To the extent that savings income falls in the first £5,000 of the basic rate band, it is taxed at nil rather than 20%.

The PSA taxes interest at nil, where it would otherwise be taxable at 20% or 40%.

Dividends are normally taxed as the ‘top slice’ of income. The DA taxes the first £500 (2023/24 £1,000) of dividend income at nil, rather than the rate that would otherwise apply.

Income tax – Scotland   2024/25 2023/24
Starter rate 19%(19%) £2,306 £2,162
Basic rate 20%(20%) 2,307 – 13,991 2,163 – 13,118
Intermediate rate 21%(21%) 13,992 – 31,092 13,119 – 31,092
Higher rate 42%(42%) 31,093 – 62,430 31,093 – 125,140
Advanced rate 45%(N/A) 62,431 – 125,140 N/A
Top rate 48%(47%) over 125,140 125,140

Savings and dividend income are taxed at normal UK rates.

High Income Child Benefit Charge (HICBC)

1% of child benefit for each £200 (2023/24: £100) of adjusted net income between £60,000 and £80,000 (2023/24: £50,000 and £60,000).

Remittance basis charge 2024/25 2023/24
For non-UK domiciled individuals who have been
UK resident in at least:
   
7 of the preceding 9 tax years £30,000 £30,000
12 of the preceding 14 tax years 60,000 60,000
15 of the preceding 20 tax years Deemed to be UK domiciled