UK Tax Rates · 2024/25 Archive
UK Tax Rates 2024/25: The Complete Guide
Every UK tax rate, allowance and threshold for the 2024/25 tax year (6 April 2024 – 5 April 2025). Income tax, National Insurance (cut to 8% from April 2024), capital gains, stamp duty, ISA limits, Scottish bands and statutory pay — all sourced from HMRC and gov.uk.
Last verified against HMRC data: 6 April 2025
Key changes in 2024/25
- Employee NI cut to 8% from 6 April 2024 (down from 10% in Jan 2024, down from 12% before that)
- Class 4 self-employed NI cut to 6% from April 2024 (was 9%)
- Class 2 NI abolished for most self-employed from April 2024
- CGT annual exemption reduced to £3,000 (was £6,000 in 2023/24)
- Non-residential CGT rates raised mid-year (30 Oct 2024 Budget): 10%→18% and 20%→24%
- VAT registration threshold raised to £90,000 from 1 April 2024 (was £85,000)
- NLW eligibility age lowered to 21 (was 23); rate rose to £11.44/hr
- Child Benefit HICBC threshold raised to £60,000 (was £50,000)
- Pension LTA abolished; replaced by Lump Sum Allowance £268,275
- SDLT first-time buyer relief on purchases up to £625,000 (ending 31 March 2025)
Personal Allowance
The standard Personal Allowance is £12,570 for 2024/25 — unchanged since 2021/22 and frozen until April 2028 under the government's fiscal drag policy. This is the amount you can earn before paying any income tax and applies across the UK, including Scotland.
The Personal Allowance is reduced by £1 for every £2 of adjusted net income above £100,000, reaching zero at £125,140. This taper creates a 60% effective marginal rate between those two thresholds — the highest effective income tax rate in the UK.
Income Tax — England, Wales & Northern Ireland
For taxpayers in England, Wales and Northern Ireland, income tax above the Personal Allowance is charged in three bands:
| 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% |
Wales has the power to vary income tax rates by 1p but did not do so for 2024/25 — Welsh taxpayers pay the same rates as England. Northern Ireland uses UK rates entirely.
Use our Income Tax Calculator or Take-Home Pay Calculator to apply these rates to your own salary.
Scottish Income Tax
Scottish taxpayers pay six income tax bands set by the Scottish Parliament, applied to non-savings, non-dividend income. Savings and dividend income use UK-wide rates. Scottish taxpayers hit the 42% higher rate at gross income of £43,662 — considerably earlier than the £50,270 threshold in the rest of the UK.
| Band | Gross income | Rate |
|---|---|---|
| Personal allowance | Up to £12,570 | 0% |
| Starter | £12,571 – £14,876 | 19% |
| Basic | £14,877 – £26,561 | 20% |
| Intermediate | £26,562 – £43,662 | 21% |
| Higher | £43,663 – £75,000 | 42% |
| Advanced | £75,001 – £125,140 | 45% |
| Top | Above £125,140 | 48% |
Scottish dividend tax rates match the UK — Scotland cannot vary dividend taxation. National Insurance is also UK-wide.
National Insurance
The most significant 2024/25 change was the employee NI main rate cut from 10% to 8% from 6 April 2024 (following an earlier cut from 12% to 10% in January 2024).
| Class | Threshold | Rate | Notes |
|---|---|---|---|
| Class 1 (Employee) | £12,570 – £50,270 | 8% main / 2% above UEL | Cut from 10% at Apr 2024 |
| Class 1 (Employer) | Above £9,100/yr | 13.80% | Unchanged (15% from Apr 2025) |
| Class 2 (Self-employed) | — | Abolished | Voluntary: £3.45/wk |
| Class 3 (Voluntary) | — | £17.45/wk | For filling NI gaps |
| Class 4 (Self-employed) | £12,570 – £50,270 | 6% main / 2% above UPL | Cut from 9% at Apr 2024 |
Employment Allowance for employers is £5,000, offsetting the first £5,000 of employer NI liability per year.
Student Loan Repayment Thresholds
| Plan | Annual threshold | Rate |
|---|---|---|
| Plan 1 (pre-2012) | £24,990 | 9% |
| Plan 2 (2012–2023, Eng/Wales) | £27,295 | 9% |
| Plan 4 (Scotland) | £31,395 | 9% |
| Plan 5 (Eng, post-2023) | £25,000 | 9% |
| Postgraduate Loan | £21,000 | 6% |
Stamp Duty / Land Transaction Tax
During 2024/25, England and Northern Ireland operated temporary higher nil-rate SDLT thresholds introduced in September 2022 and running until 31 March 2025. These reverted to the lower permanent thresholds on 1 April 2025.
SDLT — England & Northern Ireland (2024/25)
| Purchase price | Standard rate | First-time buyer |
|---|---|---|
| Up to £250,000 | 0% | 0% |
| £250,001 – £425,000 | 5% | 0% |
| £425,001 – £625,000 | 5% | 5% |
| £625,001 – £925,000 | 5% | 5% |
| £925,001 – £1,500,000 | 10% | 10% |
| Above £1,500,000 | 12% | 12% |
First-time buyer relief applied only on properties up to £625,000. Additional property surcharge: 5% on top of standard rates (raised from 3% to 5% on 31 October 2024). Non-resident surcharge: 2%.
LBTT — Scotland (2024/25)
0% to £145,000; 2% to £250,000; 5% to £325,000; 10% to £750,000; 12% above. First-time buyer nil rate to £175,000. Additional Dwelling Supplement 8% (raised from 6% to 8% on 5 December 2024).
LTT — Wales (2024/25)
0% to £225,000; 6% to £400,000; 7.5% to £750,000; 10% to £1,500,000; 12% above. No first-time buyer relief in Wales.
VAT
The VAT rates in 2024/25 are 20% standard, 5%reduced (domestic energy, children's car seats, etc.) and 0% zero-rated (most food, books, children's clothes). The registration threshold rose to £90,000 on 1 April 2024 (up from £85,000). Deregistration threshold: £88,000.
Dividend Tax
The dividend allowance for 2024/25 is £500 — reduced from £1,000 in 2023/24 and from £2,000 in 2022/23. Above the allowance, dividends are taxed at 8.75% (basic rate taxpayer), 33.75% (higher rate) and 39.35% (additional rate). Dividend tax rates apply UK-wide including Scotland.
Capital Gains Tax
The Annual Exempt Amount (AEA) is £3,000 for individuals in 2024/25 — cut from £6,000 in 2023/24.
From 30 October 2024 (Autumn Budget 2024), non-residential CGT rates were raised mid-year to match residential rates:
| Asset type | Basic-rate taxpayer | Higher/Additional rate | Notes |
|---|---|---|---|
| Residential property | 18% | 24% | Unchanged all year |
| Other assets (shares, etc.) | 18% | 24% | Was 10%/20% before 30 Oct 2024 |
| Business Asset Disposal Relief (BADR) | 10% | 10% | Full year (rose to 14% Apr 2025) |
BADR lifetime limit: £1,000,000. Investors' Relief applies the same 10% rate (2024/25) up to a £10m lifetime limit.
Inheritance Tax
The nil-rate band remains at £325,000 per person, frozen since 2009. The residence nil-rate band is £175,000 when a main residence passes to direct descendants, tapered away above a £2,000,000 estate. Combined, a married couple can pass up to £1,000,000 free of IHT. IHT is charged at 40% above the thresholds, or 36% if 10% or more of the net estate goes to charity.
ISA Allowances
- Total ISA allowance: £20,000 — unchanged since 2017/18; can be split across any combination of Cash ISA, Stocks & Shares ISA, Innovative Finance ISA or Lifetime ISA
- Lifetime ISA: up to £4,000/year (counts toward the £20,000 total); government adds a 25% bonus (up to £1,000/year) for first home purchase or retirement from age 60
- Junior ISA: £9,000 per child — separate from the adult allowance
Corporation Tax
The corporation tax structure introduced in April 2023 continued unchanged in 2024/25: 19% small profits rate on profits up to £50,000; 25% main rate on profits above £250,000; marginal relief between the two thresholds.
Pension Allowances
The Lifetime Allowance was abolished from April 2024 and replaced by two new limits:
- Lump Sum Allowance (LSA): £268,275 — maximum tax-free cash you can take across all pension schemes
- Lump Sum and Death Benefit Allowance (LSDBA): £1,073,100 — cap on tax-free death benefits
Annual allowance: £60,000, tapered for high earners with threshold income above £260,000 down to a minimum of £10,000. Money Purchase Annual Allowance (MPAA, applies after flexible drawdown): £10,000.
Minimum Wage (from 1 April 2024)
The eligibility age for the National Living Wage was lowered from 23 to 21 from April 2024:
| Rate | Per hour |
|---|---|
| National Living Wage (21+) | £11.44 |
| Development rate (18–20) | £8.60 |
| Young workers (16–17) | £6.40 |
| Apprentice rate | £6.40 |
Statutory Pay Rates
- Statutory Sick Pay (SSP): £116.75/week (up to 28 weeks); lower earnings limit £123/year
- Statutory Maternity Pay (SMP): £184.03/week for weeks 7–39 (first 6 weeks at 90% of average weekly earnings); 39 weeks paid
- Statutory Paternity Pay: £184.03/week for up to 2 weeks
State Pension
The New State Pension (post-April 2016) is £221.20/week (£11,502/year), uprated by 8.5% from April 2024 under the triple lock (the earnings growth figure). Basic State Pension (pre-2016 records): £169.50/week. State Pension age: 66 for both men and women, rising to 67 between 2026 and 2028. Minimum qualifying years: 10; full pension requires 35 years.