Income Tax bands of taxable income (£ per year)
| Tax year 2023 to 2024 | Tax year 2024 to 2025 |
Basic rate | £1 to £37,700 | £1 to £37,700 |
Higher rate | £37,701 to £150,000 | £37,701 to £125,140 |
Additional rate | Over £150,000 | Over £125,140 |
Income tax rates
| Tax year 2023 to 2024 | Tax year 2024 to 2025 |
Basic Rate | 20% | 20% |
Higher Rate | 40% | 40% |
Additional rate | 45% | 45% |
These figures apply to non-dividend income, including income from savings, employment, property or pensions. From 2017 to 2018, the main rates were separated into the main rates, the savings rates and the default rates.
Savings rates
| Tax year 2023 to 2024 | Tax year 2024 to 2025 |
Starting rate for savings | 0% | 0% |
Savings basic rate | 20% | 20% |
Savings higher rate | 40% | 40% |
Savings additional rate | 45% | 45% |
These figures apply to savings income.
Dividend rates
| Tax year 2023 to 2024 | Tax year 2024 to 2025 |
Basic rate | 8.75% | 8.75% |
Higher rate | 33.75% | 33.75% |
Additional rate | 39.35% | 39.35% |
These figures apply to dividend income received above the tax-free dividend allowance.
Default rates
| Tax year 2023 to 2024 | Tax year 2024 to 2025 |
Basic rate | 20% | 20% |
Higher rate | 40% | 40% |
Additional rate | 45% | 45% |
These figures apply to non-savings and non-dividend income of any taxpayer that is not subject to either the main rates or the Scottish rates of Income Tax.
Starting rates for savings income
| Tax year 2023 to 2024 | Tax year 2024 to 2025 |
Starting rate for savings | 0% | 0% |
Starting rate limit for savings | £5,000 | £5,000 |
Special rates for trustees’ income
| Tax year 2023 to 2024 | Tax year 2024 to 2025 |
Standard rate on first £1,000 of income which would otherwise be taxable at the special rates for trustees | Up to 20%, depends on the type of income | Up to 20%, depends on the type of income |
Trust rate | 45% | 45% |
Dividend trust rate | 39.35% | 39.35% |
Income Tax allowances
Personal Allowance
| Tax year 2023 to 2024 | Tax year 2024 to 2025 |
Personal Allowance | £12,570 | £12,570 |
Income limit for Personal Allowance | £100,000 | £100,000 |
Income limit for Married Couple’s Allowance | £34,600 | £37,000 |
The Personal Allowance reduces where the income is above £100,000 — by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of date of birth.
The income limit for Married Couple’s Allowance is an age-related allowance. It is reduced by £1 for every £2 of income over this limit.
Marriage Allowance
| Tax year 2023 to 2024 | Tax year 2024 to 2025 |
Marriage Allowance | £1,260 | £1,260 |
This transferable allowance is available to married couples and civil partners who are not in receipt of married couple’s allowance. A spouse or civil partner who is not liable to Income Tax, or not liable at the higher or additional rates, can transfer this amount of their unused personal allowance to their spouse or civil partner. The recipient must not be liable to Income Tax at the higher or additional rates.
Married Couple’s Allowance for those born before 6 April 1935
| Tax year 2023 to 2024 | Tax year 2024 to 2025 |
Maximum amount of Married Couple’s Allowance | £10,375 | £11,080 |
Minimum amount of Married Couple’s Allowance | £4,010 | £4,280 |
The relief for this allowance is given at 10%.
Blind Person’s Allowance
| Tax year 2023 to 2024 | Tax year 2024 to 2025 |
Blind Person’s Allowance | £2,870 | £3,070 |
Dividend Allowance
| Tax year 2023 to 2024 | Tax year 2024 to 2025 |
Dividend Allowance | £1,000 | £500 |
Personal Savings Allowance
| Tax year 2023 to 2024 | Tax year 2024 to 2025 |
Personal Savings Allowance for basic rate taxpayers | £1,000 | £1,000 |
Personal Savings Allowance for higher rate taxpayers | £500 | £500 |
From April 2016, the new Personal Savings Allowance means that basic rate taxpayers do not have to pay tax on the first £1,000 of savings income they receive and higher rate taxpayers do not have tax to pay on their first £500 of savings income.