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Spring Budget 2024: Essential tax rates and thresholds

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Rebecca Cave compiles a guide to the main tax rates and allowances updated in the Spring Budget, showing the main changes that will come in from 6 April 2024. 

6th Mar 2024
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These are the main tax rates and allowances updated following the Spring Budget on 6 March 2024. 

Income tax rates

 

Taxable income (not dividends and not Scottish residents)£ Rate% Tax£ Cumulative£
2024/25      
Savings: 0–5,000 0 Nil Nil
0–37,700 20 7,540.00 7,540.00
37,701–125,140 40 34,976.00 42,516.00
Over 125,140 45
2023/24      
Savings: 0–5,000 0 Nil Nil
0–37,700 20 7,540.00 7,540.00
37,701–125,140 40 34,976.00 42,516.00
Over 125,140 45

Tax rates for dividend income

 

Dividends within: 2024/25 2023/24
Basic rate band 8.75% 8.75%
Dividend allowance £500 £1,000
Higher rate band 33.75% 33.75%
Dividend allowance £500 £1,000
Additional rate band 39.35% 39.35%
Dividend allowance £500 £1,000

Personal allowances and reliefs

 

  2024/25£ 2023/24£
Personal allowance 12,570 12,570
Income limit for personal allowance 100,000 100,000
Allowances for couples:    
Marriage Allowance 1,260 1,260
Married couples: minimum (born before 6 April 1935) 4,280 4,010
Married couples: maximum (born before 6 April 1935) 11,080 10,375
Income limit for married couples’ allowance, born before 6 April1935 37,000 34,600
Blind person’s allowance 3,070 2,870
Rent-a-room relief 7,500 7,500
Trading income allowance 1,000 1,000
Property income allowance 1,000 1,000
Savings allowance - basic tax band 1,000 1,000
Savings allowance - higher tax band 500 500

Pension allowances

Tax year: 2024/25£ 2023/24£
Annual Allowance (AA) 60,000 60,000
AA is tapered when adjusted income including pension contributions exceeds:  260,000  260,000
AND net income excluding pension contributions exceeds: 200,000 200,000
Minimum tapered Annual Allowance 10,000 10,000
Money purchase annual allowance (MPAA) 10,000 10,000
Lifetime Allowance abolished abolished

Corporation tax rates

 

Year from 1 April 2024 2023
Main rate 25% 25%
Small Profits Rate 19% 19%
Small Profits Rate where profits don’t exceed: £50,000 £50,000
Marginal Relief Lower Limit £50,000 £50,000
Marginal Relief Upper Limit £250,000 £250,000
Standard fraction 3/200 3/200

CGT rates and annual exemptions

 

  Tax Year

Annual exempt amount

Tax rate paid by

  Individuals, personal representatives (PRs) and trusts for disabled General trusts Individuals

within:

Trustees and PRs
      Basic rate band Higher tax bands  
  £ £ % % %
2024/25 3,000 1,500 10 20 20
Residential property     18 24 24
Carried interest     18 28 28
  2023/24 6,000 3,000 10 20 20
  residential property & carried interest     18 28 28
             
 

NIC rates and thresholds

NIC: Class 1 primary monthly thresholds

 

Employee (primary) 2024/25£ 2023/24£
Lower earnings limit (LEL) 533 533
Primary threshold (PT) 1,048 1,048
Upper earnings limit (UEL) 4,189 4,189

NIC: Class 1 primary rates

Employee (primary) 2024/25  2023/24 from6 Jan 24

 

2023/24 to 5 Jan 24 

 

Up to LEL N/A N/A N/A
From LEL to PT 0% 0% 0%
From PT to UEL 8% 10% 12%
Above UEL 2% 2% 2%

NIC: Class 1 secondary monthly thresholds

Employer (Secondary) 2024/25£ 2023/24£
Secondary threshold (ST) 758 758
Upper secondary threshold for under 21s (UST) 4,189 4,189
Apprentice Upper secondary threshold (AUST) for under 25s 4,189 4,189
Veteran Upper Secondary Threshold (VUST) 4,189 4,189
Investment Zone Upper Secondary Threshold (IZUST) 2,083 2,083
Freeport Upper Secondary Threshold (FUST) 2,083 2,083

NIC: Class 1 secondary rates

Employer (Secondary) 2024/25  2023/24 
Up to: ST, FUST, AUST, FUST, IZUST, VUST 0% 0%
Above: ST, UST, AUST, FUST, IZUST, VUST 13.8% 13.8%
Employment Allowance – annual amount per company / group £5,000 £5,000

NIC: Class 2 rates and thresholds

Tax year Flat rate per week(note 1) Share fishermen per week Volunteer development workers per week Small profit threshold(note 2) Lower profits threshold(note 3)

 

£ £ £ £ £
  2024/25 3.45 4.10 6.15 6,725 N/A
2023/24 3.45 4.10 6.15 6,725 12,570
             
Notes:
  1. Self-employed traders with profits below the small profits threshold do not have to pay class 2 NIC, but they are not entitled to a NI credit. They can pay class 2 NIC voluntarily.      
  2. For 2022/23 and 2023/24 self-employed individuals don’t pay class 2 NIC if their annual profits fall between the small profit threshold and the lower profits threshold, but they are given an NI credit for the year.
  3. From 2024/25 onwards there is no liability to class 2 NIC for self-employed traders with profits above the small profits threshold, but all self-employed traders with profits above the small profits threshold are entitled to an NI credit.

NIC: Class 3 rates

 

Tax Year

Weekly Rate
£
  2024/25 17.45
2023/24 17.45
     
 

NIC: Class 4 rates and thresholds

Tax Year

Main rate Additional rate Lower profits limit Upper profits limit
% % £ £
  2024/25 6 2 12,570 50,270
2023/24 9 2 12,570 50,270
           
 

VAT registration and deregistration limits

Effective date  Registration turnover:£  Registration exception: turnover not exceeding£ Deregistration turnover£
1 April 2024 90,000 88,000 88,000
1 April 2017 to 31 March 2024 85,000 83,000 83,000
High income child benefit charge (HICBC)
Period child benefit received: Lower income threshold£  Upper income threshold£
From 6 April 2024 60,000 80,000
From 7 January 2013 to 5 April 2024 50,000 60,000

Replies (12)

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avatar
By Rammstein1
06th Mar 2024 14:01

Is the residential CGT 24% from April 2024 or after this date?

Thanks (0)
Replying to Rammstein1:
Head of woman
By Rebecca Cave
06th Mar 2024 14:31

The change to CGT rates applies from 6 April 2024: https://www.gov.uk/government/publications/spring-budget-2024-overview-o...

Thanks (0)
Replying to Rammstein1:
avatar
By 62286Go
06th Mar 2024 14:32

From my reading I believe that the higher property capital gains tax rate will be reduced from 28% to 24% as from 6 April 2024.

Thanks (0)
Replying to Brian Gooch:
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By bendybod
06th Mar 2024 14:44

And Class 2? I've read that bit about five times and am still missing something!

Thanks (0)
Replying to Brian Gooch:
avatar
By Brian Gooch
06th Mar 2024 15:10

Now corrected

Brian Gooch wrote:

Class 4 NIC rate is reducing to 6%
https://www.gov.uk/government/publications/spring-budget-2024-overview-o...

Thanks (0)
By ireallyshouldknowthisbut
06th Mar 2024 15:07

Im still annoyed they put dividend rates up with NI, and not cut it when it come down.

Small business is getting a kicking now if running through a limited company.

Thanks (1)
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By leeyiukong
06th Mar 2024 23:42

If my salary income is less than £12,570, but my dividend income is over £1,000 (say £5,000), how much tax do I need to pay? thanks!

Thanks (0)
Replying to leeyiukong:
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By mumpin
07th Mar 2024 15:08

Nothing because the Staring Rate for savings applies (£5,000)

Thanks (1)
Replying to mumpin:
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By FactChecker
07th Mar 2024 19:40

eh? Dividends are treated separately (and differently) to Savings ...
... and (for benefit of leeyiukong) the Dividend Allowance halves from 6th April 2024 to only £500 p.a.

Thanks (3)
Replying to leeyiukong:
avatar
By Hometing
11th Mar 2024 09:53

Well, that depends on how much less than £12,570 your salary is.

Thanks (0)
Replying to leeyiukong:
avatar
By Hometing
11th Mar 2024 09:53

Well, that depends on how much less than £12,570 your salary is.

Thanks (0)
avatar
By MinimalDamage
08th Mar 2024 16:16

Apparently, the lifetime allowance concept is still in place for 2023/24:

https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm091100

Abolished form 2024/25.

Unless I have missed something.

Thanks (1)