Sign up for news alerts.

We update our financial wellbeing resources regularly to help people build their financial literacy. If you would like to be notified of these updates please submit your email address below, you can opt out whenever it suits you.

Square icon-style image overlaid on the hero banner

2023/2024 Tax Rates

Find out how your tax rates may change in the new financial year, and what impact this may have on your financial planning.

Your 2024 Tax Rates

With the new financial year set to begin on April 6th, 2023, several tax rates are set to change. The Autumn 2022 budget set out many reductions to key personal tax allowances, which could have an impact on your finances.

Get help with taxes

Personal Tax Allowances and Income Tax

The personal allowance is set to remain the same as it was in the previous tax year. Similarly, the threshold for basic and higher rate tax bands will not change. However, the threshold for additional rate taxpayers will lower from £150,000 to £125,140. If you earn over the threshold for additional rates, this means you will start paying more tax sooner than before.

The 2023/24 income tax rates for Britain are:

  • Personal Allowance: 0% tax on earnings up to £12,570
  • Basic Rate: 20% tax on earnings between £12,571 and £50,270
  • Higher Rate: 40% tax on earnings between £50,271 and £125,139
  • Additional Rate: 45% tax on earnings over £125,140

The 2023/24 income tax rates for Scotland are:

Income tax rates vary for people living in Scotland and are as follows:

  • Personal Allowance: 0% tax on earnings up to £12,570
  • Starter Rate: 19% tax on earnings between £12,571 and £14,732
  • Basic Rate: 20% tax on earnings between £14,733 and £25,688
  • Intermediate Rate: 21% tax on earnings between £25,689 and £43,662
  • Higher Rate: 42% tax on earnings between £43,663 and £125,140
  • Top Rate: 47% tax on earnings above £125,140

If you earn over £100,000, your personal allowance will be reduced by £1 for every £2 over the limit you earn. This means if you earn over £125,140, your personal allowance will be £0.

Personal Savings Allowance and Savings Income

  • Basic rate tax payers: £1,000
  • Higher rate tax payers: £500 
  • Additional rate tax payers: £0
  • Individual Savings Account investment limit: £20,000 
  • Junior ISA limit: £9,000
  • Help to buy ISA limit: £1,000 initially, then £200 per month
  • Lifetime ISA limit: £4,000

The starting rate for savings income remains £5,000.

  • Savings Starting rate: 0%
  • Savings Basic rate: 20%
  • Savings Higher rate: 40%
  • Savings Additional rate: 45%


2023/24 Pension Tax Relief

Annual allowance: £60,000
Money purchase annual allowance: £4,000
Tapered annual allowance: £240,000

The pension annual allowance is reduced by £1 for every £2 of adjusted income over £240,000, limiting tax relief for high earners, as long as your threshold income is above £200,000. The minimum annual allowance is £4,000.

The lifetime tax-free allowance of £1,073,100 on pension savings has been scrapped.

Family Related Allowances

Marriage allowance will remain the same as the 2022/23 tax year. However, married couple’s allowance will rise.

The income limit for a married couple’s allowance, available to married couples where one of you was born before 6th April 1935, is £31,400. Like personal allowance, this is reduced by £1 for every £2 you earn over the limit.

The marriage allowance is a transferable allowance that enables married couples to transfer part of their personal allowance to one another, as long as the recipient is not liable to pay higher or additional tax rates.

  • Marriage allowance: The limit is £1,260.
  • Married couple’s allowance: The minimum is £4,010, whilst the maximum is £10,375.

Other family related tax allowances

  • Blind Person’s allowance: £2,870, a £270 increase from the previous year.
  • Rent-a-room relief tax free income: £7,500
  • High income child benefit charge: 1% of benefit per £100 of income over £50,000

Inheritance & Capital Gains Tax Rates in 2023/24

Inheritance Tax Rates in 2023/24

Inheritance Tax Rate for estates: 40%, or 36% is 10% or more of an estate is left to charity.
Rate for lifetime transfers: 20%
Nil-rate band limit: £325,000
Residence nil-rate band limit: £175,000
Taper threshold for residence nil-rate band: £2,000,000

Capital Gains

The capital gains tax allowance is set to reduce by over half it’s 2022/23 limit.

Capital Gains Tax annual exempt amount for individuals: £6,000
Capital Gains Tax annual exempt amount for most trustees: £3,000
Basic rate taxpayer: 10%
Basic rate capital gains tax from residential properties: 18%
Higher & additional rate taxpayer: 20%
Higher & additional rate capital gains tax from residential properties: 28%
Rate for trustees: 20%
Rate of capital gains tax from residential properties for trustees: 28%
Gains subject to business asset disposal relief: 10%
Lifetime limit on qualifying gains: £10,000,000

Company & Business Owner Taxes

Corporation Tax

Corporation Tax is paid to the government by UK companies and foreign companies with UK offices. It is calculated based on profitsDuring the Autumn Statement the government announced a rise in corporation tax. From the new tax year businesses will have to pay the normal rate of corporation tax at 19% if their profits are under £50,000 for the year. For businesses with profits over £250,000 they will need to pay 25% corporation tax. Between these two rates the tax rate will increase gradually for companies as their profit rise from £50,000 to £250,000. 

The government will allow businesses to subtract money they invest in IT and plant machinery equipment from the profits they pay corporation tax on for the next three years.

If you receive income from dividends, it is crucial to note that the tax-free dividend allowance is going to halve to £1,000 in the 2023/2024 tax year. Rates are as follows:

  • Dividends rates for basic rate taxpayers: 8.5%
  • Dividends rates for higher rate taxpayers: 33.75%
    Dividends rates for additional rate taxpayers: 39.35%

2023/24 Trustee’s Income

For trust income up to £1,000 and interest:

  • Dividends: 8.75%
  • Other income: 20%

For non-interest trust income over £1,000:

  • Dividends: 39.35%
  • Other income: 45%

National Insurance Contributions 2023/24

Class 1 National Insurance Contributions (NIC) rates are:

Employees: 12%
Employers: 13.8%
Lower earnings limit: £6,396
Primary threshold: £12,570
Secondary threshold: £9,100
Upper earnings limit: £50,270
Upper secondary threshold (under 21s): £50,270
Apprentice upper secondary threshold (under 25s): £50,270

Class 2 (self-employed) NIC rates are:

Flat rate: £3.45 for profits over £12,570 per annum
Small Profits Threshold: £6,725

Class 3 NIC rate is a voluntary contribution at a flat rate of £17.45 per week.

Class 4 NIC is payable where self-employed profits are higher than the lower profits limit.

Profits between £12,570 – £50,270: 9%
Profits above £50,270: 2%

Stamp Duty

When it comes to stamp duty, different rules apply depending on whether you are in England and Northern Ireland, Scotland, or Wales, or are a non-UK resident. For help and advice on stamp duty, get in touch with us.

For the UK and Ireland, Stamp Duty Land Tax for main residences is as follows until March 31st, 2025:

  • Property purchase price below £250,000: 0%
  • Property purchase price between £250,001 and £925,000: 5%
  • Property purchase price between £925,001 and £1,500,000: 10%
  • Property purchase price over £1,500,000: 12%
  • Enveloped properties purchased for over £500,000: 15%

For additional properties and purchases by companies:

  • Property purchase price below £250,000: 3%
  • Property purchase price between £250,001 and £925,000: 8%
  • Property purchase price between £925,001 and £1,500,000: 13%
  • Property purchase price over £1,500,000: 15%
  • Enveloped properties purchased for over £500,000: 15%

Stamp Duty Land Tax rates for first time buyers:

  • Property purchase price below £425,000: 0%
  • Property purchase price between £425,001 to £625,000: 5%

Get Ahead of your 2023/24 Taxes

Understanding tax rates and determining which apply to you can be tricky. However, staying on top of your taxes throughout the year is the key to maximising your tax allowances and paying less tax. The key is to ensure you keep your financial situation under control, well planned and as result you feel less stressed about your financial situation.  At Unividual, we’re here to help you make the most of your allowances and put together a financial plan to see you through the year.


Author & Editor: Cherie-Anne Baxter, Marketing Director

Date Written: 6th March 2023

Date Updated: 16th March 2023


Risk Warnings:

Tax treatment varies according to individual circumstance and is subject to change.

Approver Quilter Financial Limited 15/03/2023

For more information, or advice from our team, contact us today.

    Get in touch

    The information collected will be used solely for the purposes of providing background information when contacting you to arrange an appointment.