Tax and National Insurance contribution rates

Income tax allowance

Allowances £	2021/22	2022/23	2023/24
Personal Allowances
individuals	12,570	12,570	12,570
Transferable tax allowance:
for married couples and civil partners	1,260	1,260	1,260
Married couple's allowance:
for those born before 6 April 1935, maximum amount	9,125	9,415	10,375
for those born before 6 April 1935, minimum amount	3,530	3,640	4,010
Blind person's allowance	2,520	2,600	2,870
Income limit for personal allowance	100,000	100,000	100,000
Income limit for married couple’s allowance*	30,400	31,400	34,600
Dividend Allowance**	2,000	2,000	1,000
Personal Savings Allowance***
Basic Rate Taxpayers	1,000	1,000	1,000
Higher Rate Taxpayers	500	500	500

 

* The married couple’s allowance is reduced, where the taxpayer’s income in the tax year is above the income limit, by £1 for every £2 above the limit until the level of the minimum married couple’s allowance is reached.

** Any individual who receives dividend income is entitled to a Dividend Allowance. This is a nil rate band of tax, which means an individual pays no income tax on their dividend income up to the amount of the allowance. It does not reduce the amount of taxable income.

*** Basic rate and higher rate taxpayers (but not additional rate taxpayers) who receive savings income are entitled to a Personal Savings Allowance. This is a nil rate band of tax, which means that basic rate and higher rate taxpayers pay no income tax on £1,000 or £500 of savings income respectively. The Personal Savings Allowance does not reduce the amount of taxable income.

Income tax: taxable bands

N.B. Income is charged to tax according to the rates and bands in the table(s) below after deducting any allowances (such as the personal allowance and blind person’s allowance) to which the person is entitled. * **

UK income tax

2021/22	Band	2022/23	Band	2023/24	Band
Starting rate for savings 0%	Up to £5,000	Starting rate for savings 0%	Up to £5,000	Starting rate for savings 0%	Up to £5,000
Basic rate 20%	Up to £37,700	Basic rate 20%	Up to £37,700	Basic rate 20%	Up to £37,700
Higher rate 40%	£37,701 to £150,000	Higher rate 40%	£37,701 to £150,000	Higher rate 40%	£37,701 to £125,140
Additional rate 45%	Over £150,000	Additional rate 45%	Over £150,000	Additional rate 45%	Over £125,140

* From April 2016, if you live in Scotland and are a Scottish taxpayer, Scottish rates and bands apply to your non-savings, non-dividend income. See our pages on Scottish income tax for more information.

Scottish income tax

2021/22	Band	2022/23	Band	2023/24	Band
Starter rate 19%	Up to £2,097	Starter rate 19%	Up to £2,162	Starter rate 19%	Up to £2,162
Basic rate 20%	£2,098 to £12,726	Basic rate 20%	£2,163 to £13,118	Basic rate 20%	£2,163 to £13,118
Intermediate rate 21%	£12,727 to £31,092	Intermediate rate 21%	£13,119 to £31,092	Intermediate rate 21%	£13,119 to £31,092
Higher rate 41%	£31,093 to £150,000	Higher rate 41%	£31,093 to £150,000	Higher rate 42%	£31,093 to £125,140
Top rate 46%	Over £150,000	Top rate 46%	Over £150,000	Top rate 47%	Over £125,140

** From April 2019, if you live in Wales and are a Welsh taxpayer, Welsh rates and bands apply to your non-savings, non-dividend income. See our pages on Welsh income tax for more information.

Welsh income tax

2021/22	Band	2022/23	Band	2023/24	Band
Basic rate 20%	Up to £37,700	Basic rate 20%	Up to £37,700	Basic rate 20%	Up to £37,700
Higher rate 40%	£37,701 to £150,000	Higher rate 40%	£37,701 to £150,000	Higher rate 40%	£37,701 to £125,140
Additional rate 45%	Over £150,000	Additional rate 45%	Over £150,000	Additional rate 45%	Over £125,140

Dividends

NB *

2021/22	Tax rate	2022/23	Tax rate	2023/24	Tax rate
Up to £37,700	7.5%	Up to £37,700	8.75%	Up to £37,700	8.75%
£37,701 - £150,000	32.5%	£37,701 - £150,000	33.75%	£37,701 - £125,140	33.75%
Over £150,000	38.1%	Over £150,000	39.35%	Over £125,140	39.35%

 

* In 2022/23 the dividend rates increased to 8.75%, 33.75% and 39.35% to include 1.25% for the health and social care levy. The health and social care levy no longer exists, but the dividend rates remain at their higher levels.

National Insurance contributions (NIC)

Class 1 primary NIC (employee – EE) * **

£ per week (unless stated)	2021/22	2022/23	2023/24
Lower earnings limit	120	123	123
Primary threshold	184	190 (6 April – 5 July) 242 (6 July – 5 April)	242
Upper earnings limit	967	967	967
EE primary Class 1 rate between primary threshold and upper earnings limit	12%	13.25% (6 April – 5 November) 12% (6 November – 5 April)	12%
EE primary Class 1 rate above upper earnings limit	2%	3.25% (6 April – 5 November) 2% (6 November – 5 April)	2%
Married women's reduced rate between primary threshold and upper earnings limit	5.85%	7.1% (6 April – November) 5.85% (6 November - 5 April)	5.85%
Married women's rate above upper earnings limit	2%	3.25% (6 April – 5 November) 2% (6 November – 5 April)	2%

* For 2022/23, from 6 April until 5 November 2022, the Class 1 primary NIC rates included an extra 1.25% for the health and social care levy. The health and social care levy is no longer taking effect from 6 April 2023.

** During 2022/23 the earnings level at which you start to pay National Insurance contributions increased. For employees, the increase took effect on 6 July 2022.

Class 1 secondary NIC (employers – ER) *

£ per week (unless stated)	2021/22	2022/23	2023/24
Secondary threshold	170	175	175
ER secondary Class 1 rate above secondary threshold	13.8%	15.05% (6 April – 5 November) 13.8% (6 November – 5 April)	13.8%

 

* For 2022/23, from 6 April until 5 November 2022, the Class 1 secondary NIC rate included an extra 1.25% for the health and social care levy. The health and social care levy is no longer taking effect from 6 April 2023.

Class 2 NIC (self-employed) *

£ per week (unless stated)	2021/22	2022/23	2023/24
Class 2 rate	3.05	3.15	3.45
Class 2 small earnings exception/small profits (per year)	6,515	6,725	6,725
Class 2 lower profits limit	9,568	11,908	12,570
Special Class 2 rate for share fishermen	3.70	3.80	4.10
Special Class 2 rate for volunteer development workers	6.00	6.15	6.15

 

* For years up to and including 2021/22, you pay Class 2 NIC if your profits are more than the small profits threshold. For 2022/23 onwards, you only pay Class 2 NIC if your profits are more than the lower profits limit. If you have profits between the small profits threshold and the lower profits limit, you will not have to pay Class 2 NIC, but you will be treated as though you have paid it, for the purpose of entitlement to contributory benefits.

Class 3 NIC (voluntary)

£ per week	2021/22	2022/23	2023/24
Class 3 rate	15.40	15.85	17.45

Class 4 NIC (self-employed) *

£ per year	2021/22	2022/23	2023/24
Class 4 lower profits limit	9,568	11,908	12,570
Class 4 upper profits limit	50,270	50,270	50,270
Class 4 rate between lower profits limit and upper profits limit	9%	9.73%	9%
Class 4 rate above upper profits limit	2%	2.73%	2%

 

* For 2022/23 the Class 4 NIC rates were adjusted to take account of an extra 1.25% for the health and social care levy, which was in place between 6 April and 5 November 2022. The health and social care levy is no longer taking effect from 6 April 2023.

Capital gains tax

	2021/22	2022/23	2023/24
Standard rate*	10% / 18%	10% / 18%	10% / 18%
Rate for higher and additional taxpayers	20% / 28%	20% / 28%	20% / 28%
Annual exemption	£12,300	£12,300	£6,000
Business Asset Disposal Relief rate	10%	10%	10%
Business Asset Disposal Relief lifetime limit	£1m	£1m	£1m

* CGT rates of 10% and 20% introduced in Finance Bill 2016 for disposals on or after 6 April 2016 do not apply to transactions involving residential property or carried interest. CGT rates for these transactions remain at 18% and 28%.

Inheritance tax

Chargeable lifetime transfers (after exemptions)	2021/22	2022/23	2023/24
Nil rate band – 0%	Up to £325,000	Up to £325,000	Up to £325,000
20%	Over £325,000	Over £325,000	Over £325,000
On death (net estate)
Nil band rate – 0%	Up to £325,000	Up to £325,000	Up to £325,000
Residence nil rate band* – 0%	Up to £175,000	Up to £175,000	Up to £175,000
40% **	Over £325,000 or £500,000 (325,000 + 175,000)	Over £325,000 or £500,000 (325,000 + 175,000)	Over £325,000 or £500,000 (325,000 + 175,000)

 

* The residence nil rate band will be available on the death of an individual, if they pass on a property, which has been their residence at some point, to a direct descendant.
** There is a reduced rate of 36% for estates that leave 10% or more to charity.

Other rates

You can view income tax rates and allowances for prior years on GOV.UK

Rates and thresholds for employers: 2022 to 2023

These are the rates and thresholds that employers use when they operate your payroll. They include statutory sick pay and parental pay rates as well as student loan and minimum wage rates.

For other rates and allowances, including in respect of child benefit and tax credits, see Rates and allowances: HM Revenue and Customs (this collection brings together the main rates of tax and duty, interest rates, exchange rates and allowances published by HMRC).

For a list of pension and benefit rates, see GOV.UK.

The auto-enrolment thresholds in 2023/24 can be found on GOV.UK.