2024/25 Tax rates and allowances at a glance

Tax rates and allowances

The new tax year is upon us so here at Adams Accountancy, we’ve decided to give our clients a helping hand by putting all the 2024/25 tax rates and allowances into one handy blog. Covering all the key tax data, this handy list will save you oodles of time this year. Or you could look them all up on the HMRC website if you ‘ve got nothing better to do!

2024/25 Tax rates and allowances for income

  England & Northern Ireland  Wales  Scotland 
  Threshold Rate Threshold Rate Threshold Rate
Starter N/A N/A N/A N/A £12,570 19%
Basic £12,570* 20% £12,570 20% £14,876 20%
Intermediate N/A N/A N/A N/A £26,561 21%
Higher £50,270 40% £50,270 40% £43,662 41%
Additional/Advanced £125,140** 45% £125,140** 45% £75,000 45%
Top N/A N/A N/A N/A £125,140** 46%

*Threshold of taxable income above which basic rate applies assuming full personal allowance entitlement.

** Personal allowance reduces by £1 for every £2 of income above £100,000 limit.

Dividend tax rates and allowances

Basic 8.75%
Higher 33.75%
Additional 39.35%
Allowance £500

Personal savings allowances

Basic £1000
Higher £500
Additional £0

Other allowances

Married/civil partner (born on/after 6 April 1935) £1,260
Married/civil partner (born before 6 April 1938) £11,080
Income limit for age-related allowances £37,700

National Insurance Contributions


Class 1 (employee) Weekly Monthly Yearly
Lower earnings limit (LEL) £123 £533 £6,396
Primary threshold* £242 £1,048 £12,570
Secondary threshold** £175 £758 £9,100
Upper earnings limit (UEL) £967 £4,189 £50,270

*No employee NICs payable

**No employer NICS payable

Class 1 (employee) 
Total earnings £ per week Rate
Below 242 0%
242.01-967 8%
Above 967 2%
Class 1 (employer) 
Total earnings £ per week Rate
Below 175 0%
175.01-967 13.8%
Class 2 (self-employed)* £3.45 per week
Class 3 (voluntary) £17.45 per week
Class 4 (self-employed) 6% of profits between £12,570 and £50,270
2% of profits over £50,270

*Class 2 NICs are no longer compulsory but may be paid by individuals with profits below the Lower Profits Limited. They may also be paid by those working overseas instead of Class 3 NICs.

Capital gains tax

Individuals/estates £3,000 
Trusts £1,500 
Rates Residential property Other assets
Up to the basic rate limit 18% 10%
Above the basic rate limit 24% 20%

Business asset disposal relief (BADR)

Tax rate 10%
Lifetime Limit £1,000,000

For more information, see our blog about BADR.

Inheritance tax

Rates of tax on death transfers  
Nil rate band £325,000
Main residence nil rate band £175,000
Tax rate 40%
Lifetime transfers to and from certain trusts 20%
UK domiciled spouse/partner No limit
Non-UK-domiciled spouse/partner £325,000
UK registered charity No limit
Lifetime transfers  
Annual exemption per donor £3,000
Small gifts exemption £250
Wedding gift by parent £5,000
Wedding gift by grandparent £2,500
Wedding gift by other £1,000


Lump Sum Allowance Lump Sum Death Benefit Allowance Annual Allowance Money Purchase Annual Allowance
£268,275 £1,073,100 £60,000 £10,000

Corporation Tax

Small profits rate (under £50,000 profit) 19%
Main rate (profits over £250,000) 25%

For ideas on how to reduce your corporation tax bill, check out our blog on allowable expenses.


Standard rate 20%*
Reduced rate 5%
Registration threshold £90,000
De-registration threshold £88,000

*The Flat Rate Scheme allows small businesses to reclaim VAT at variable rates according to the industry.

Getting help with 2024/25 tax rates and allowances

Although we’ve included all the main 2024/25 tax rates and allowances here, there may be other information you need to help you understand your tax position. Get in touch on 01322 250001 or complete our online contact form if you have any questions about the impacts of this years tax information on your business success.