UK Tax Rates · Historical Archive
UK Tax Rates 2023/24: The Complete Guide
Every UK tax rate, allowance and threshold for the 2023/24 tax year (6 April 2023 to 5 April 2024). A notable year: the additional rate threshold dropped to £125,140, the CGT annual exemption halved to £6,000, the dividend allowance was cut to £1,000, and the pension annual allowance was restored to £60,000. Employer NI stood at 13.8%, employee NI at 12% for most of the year (cut to 10% from 6 January 2024).
Last verified against HMRC data: 3 June 2026
Key changes in 2023/24
- Additional rate threshold cut: £150,000 → £125,140 (6 April 2023)
- Corporation tax main rate rose: 19% → 25% (1 April 2023)
- CGT annual exemption halved: £12,300 → £6,000
- Dividend allowance cut: £2,000 → £1,000
- Pension annual allowance restored: £40,000 → £60,000; LTA charge removed
- Employee NI main rate cut mid-year: 12% → 10% from 6 January 2024
- State Pension rose 10.1% to £203.85/week (triple lock)
Personal Allowance
The standard Personal Allowance is £12,570 for 2023/24 — frozen at this level since 2021/22 and scheduled to remain frozen until April 2028. It applies UK-wide (including Scotland, which sets its own income tax rates on top).
Above £100,000, the Personal Allowance reduces by £1 for every £2 of income, reaching zero at £125,140. This creates a 60% effective marginal tax rate between those two figures — one of the highest effective rates in the UK tax system.
Income Tax — England, Wales & Northern Ireland
From 6 April 2023 the additional rate threshold dropped from £150,000 to £125,140, bringing it in line with the point at which the Personal Allowance is fully withdrawn. This affected an estimated 250,000 additional taxpayers.
| Band | Gross income | Rate |
|---|---|---|
| Personal allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 – £50,270 | 20% |
| Higher rate | £50,271 – £125,140 | 40% |
| Additional rate | Above £125,140 | 45% |
Taxable income = gross income minus Personal Allowance and any reliefs (e.g. Gift Aid, pension contributions). The basic rate band of £37,700 is measured from taxable income, placing the higher rate threshold at £50,270 gross (PA + £37,700).
Try our Income Tax Calculator or Take-Home Pay Calculator to apply these rates to your own salary.
Scottish Income Tax
Scotland operates five bands in 2023/24 (one fewer than in later years). The key divergence from rUK: the higher rate (42%) kicks in at £43,662 gross — over £6,600 earlier than the rUK higher rate threshold of £50,270. Scottish taxpayers also face a 47% top rate (raised from 46%).
| Band | Gross income | Rate |
|---|---|---|
| Personal allowance | Up to £12,570 | 0% |
| Starter rate | £12,571 – £14,732 | 19% |
| Basic rate | £14,733 – £25,688 | 20% |
| Intermediate rate | £25,689 – £43,662 | 21% |
| Higher rate | £43,663 – £125,140 | 42% |
| Top rate | Above £125,140 | 47% |
Scottish income tax applies to non-savings, non-dividend income for Scottish taxpayers. NI, savings interest and dividends are taxed at rUK rates for everyone.
National Insurance
| Class | Who pays | Rate / threshold |
|---|---|---|
| Class 1 Employee | Employees | 12% on £12,570–£50,270; 2% above (headline — see note above) |
| Class 1 Employer | Employers | 13.80% above £9,100/yr (Employment Allowance: £5,000) |
| Class 2 | Self-employed | £3.45/week (profits above £6,725) — abolished from April 2024 |
| Class 3 Voluntary | Voluntary contributors | £17.45/week |
| Class 4 Self-employed | Self-employed | 9% on £12,570–£50,270; 2% above |
Student Loan Repayment Thresholds
| Plan | Threshold | Rate |
|---|---|---|
| Plan 1 (pre-2012) | £22,015 | 9% |
| Plan 2 (2012–2023) | £27,295 | 9% |
| Plan 4 (Scotland) | £27,660 | 9% |
| Plan 5 (post-2023 England) | £25,000 | 9% |
| Postgraduate Loan | £21,000 | 6% |
Stamp Duty / Land Transaction Tax
In 2023/24 England & NI used the temporary SDLT nil-rate band of £250,000 (in place September 2022 – March 2025). Scotland's LBTT Additional Dwelling Supplement was 6% (raised from 4% in December 2022). Wales used LTT with a £225,000 nil-rate band.
- England & NI (SDLT) — 0% up to £250,000, 5% to £925,000, 10% to £1,500,000, then 12%. FTB 0% up to £425,000. Additional property surcharge: 3%.
- Scotland (LBTT) — 0% up to £145,000. ADS (additional dwellings): 6%.
- Wales (LTT) — 0% up to £225,000, 6% to £400,000. No FTB relief in Wales.
Use our Stamp Duty Calculator for all three regimes.
VAT
UK VAT rates are 20% standard, 5%reduced (domestic energy, children's car seats), and 0% zero-rated (most food, books, children's clothes). The VAT registration threshold is £85,000 — frozen since 2017 (it rose to £90,000 in April 2024). Deregistration threshold: £83,000.
Dividend Tax
The dividend allowance was cut from £2,000 to £1,000 on 6 April 2023. Above the allowance, dividends are taxed depending on your income tax band:
| Band | Rate |
|---|---|
| Basic rate taxpayer | 8.75% |
| Higher rate taxpayer | 33.75% |
| Additional rate taxpayer | 39.35% |
The allowance halved again to £500 in 2024/25. Scottish taxpayers pay the same dividend rates as rUK — Scotland cannot vary dividend taxation.
Capital Gains Tax
The CGT annual exempt amount was £6,000 — cut from £12,300 in 2022/23. It was halved to £3,000 in 2024/25.
| Asset type | Basic rate | Higher/additional rate |
|---|---|---|
| Most assets (shares, etc.) | 10% | 20% |
| Residential property | 18% | 28.00% |
| Business Asset Disposal Relief | 10% (lifetime limit £1,000,000) | |
Inheritance Tax
Nil-rate band: £325,000 per person (frozen since 2009, extended to April 2028). Residence nil-rate band: £175,000 when leaving a main home to direct descendants (tapered above £2,000,000 estate value). IHT is 40% on the excess, or 36% if 10%+ of the net estate goes to charity.
ISA Allowances
- Total ISA allowance: £20,000
- Lifetime ISA: £4,000 (counts toward the £20,000 total; 25% government bonus on contributions)
- Junior ISA: £9,000
- Help to Buy ISA: monthly max £200, initial deposit up to £1200 (scheme closed to new applicants November 2019; existing accounts still active)
Pension Allowances
The annual allowance was restored to £60,000 from 6 April 2023 — up from £40,000 where it had been since 2014/15. The Lifetime Allowance charge was simultaneously removed (the LTA itself was abolished from April 2024).
- Annual allowance: £60,000
- Tapered annual allowance: applies when adjusted income exceeds £260,000; minimum tapered allowance £10,000
- Money Purchase Annual Allowance (MPAA): £10,000 (raised from £4,000 in April 2023)
- Transitional Lump Sum Allowance: £268,275 (equivalent to 25% of the former standard LTA)
Corporation Tax
From 1 April 2023 the main corporation tax rate rose from 19% to 25% for companies with profits above £250,000. A small profits rate of 19% applies to profits up to £50,000, with marginal relief between those thresholds.
- Small profits rate (up to £50,000): 19%
- Main rate (above £250,000): 25%
- Marginal relief band: £50,000 – £250,000
Minimum Wage (from 1 April 2023)
| Rate | Per hour |
|---|---|
| National Living Wage (23+) | £10.42 |
| Development rate (21–22) | £10.18 |
| Young workers (18–20) | £7.49 |
| Young workers (16–17) | £5.28 |
| Apprentice rate | £5.28 |
The National Living Wage age threshold dropped from 25 to 23 in April 2021 and remained at 23+ for 2023/24 (lowered to 21+ from April 2024).
Statutory Pay Rates
- Statutory Sick Pay (SSP): £109.40 per week (up to 28 weeks). Lower Earnings Limit: £123.
- Statutory Maternity Pay (SMP): first 6 weeks at 90% of average weekly earnings, then £172.48 per week for up to 39 weeks paid (52 weeks total leave).
- Statutory Paternity Pay (SPP): £172.48/week for up to 2 weeks.
State Pension
The New State Pension rose to £203.85 per week (£10,600 per year) from April 2023 — a 10.1% increase under the triple lock (September 2022 CPI). The Basic State Pension (pre-2016 retirees) is £156.20 per week. State Pension age is 66 for both men and women (rising to 67 from 2026).