Income Tax
| Bands | 2024-25 | 2023-24 |
| Savings starting rate – 0%* | £1 – £5,000 | £1 – £5,000 |
| Basic rate 20% | £1 – £37,700 | £1 – £37,700 |
| Higher rate 40% | £37,701 – £125,140 | £37,701 – £125,140 |
| Additional rate 45% | Over £125,140 | Over £125,140 |
| Scottish rates | ||
| Starter rate 19% | £1 – £2,306 | £1 – £2,162 |
| Basic rate 20% | £2,307 – £13,991 | £2,163 – £13,118 |
| Intermediate rate – 21% | £13,992 – £31,092 | £13,119 – £31,092 |
| Higher rate – 42% | £31,093 – £62,430 | £31,093 – £125,140 |
| Advanced rate – 45% | £62, 431 – £125,140 | – |
| Additional rate – 48% (2023-24: 47%) | Over £125,140 | Over £125,140 |
| Welsh rates | ||
| Starter rate 0%* | £1 – £5,000 | £1 – £5,000 |
| Basic rate 20% | £1 – £37,700 | £1 – £37,700 |
| Higher rate – 40% | £37,701 – £125,140 | £37,701 – £125,140 |
| Additional rate – 45% | Over £125,140 | Over £125,140 |
* The savings starting rate does not apply if non-savings income exceeds £5,000.
Income tax in Scotland and Wales is payable on non-savings and non-dividend income.
| Dividend allowance | £500 | £1,000 |
| Dividend ordinary rate | 8.75% | 8.75% |
| Dividend upper rate | 33.75% | 33.75% |
| Dividend additional rate | 39.35% | 39.35% |
| Personal savings allowance | ||
| – basic rate taxpayers | £1,000 | £1,000 |
| – higher rate taxpayers | £500 | £500 |
| Reliefs | 2024-25 | 2023-24 |
| Personal allowance | £12,570 | £12,570 |
| Registered blind person’s allowance | £3,070 | £2,870 |
| Income limit for personal allowance* | £100,000 | £100,000 |
* The personal allowance is gradually withdrawn by £1 for every £2 of income over £100,000.
| Married couple allowance – tax relief given at 10% | ||
| – Born before 6 April 1935 | £11,080 | £10,375 |
| – Minimum amount* | £4,280 | £4,010 |
| – Income limit | £37,000 | £34,600 |
| – Marriage allowance* | £1,260 | £1,260 |
*A tax payer can transfer up to £1,260 (2023-24: £1,260) of their unused personal allowance to a spouse or civil partner who is not a higher rate taxpayer.
| High Income Child Benefit Charge* on income over | £60,000 | £50,000 |
* A tax charge of 1% is levied for each £200 (2023-24: £100) that income exceeds £60,000 (2023-24: £50,000) to a maximum of 100%.
There is a cap on certain Income Tax reliefs of the greater of £50,000 or 25% of income.
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