Tax Facts
Autumn Budget 2024 Staithes 3, The Watermark, Metro Riverside, Newcastle upon Tyne NE11 9SN aia@aiaworldwide.com aiaworldwide.com
Income Tax Allowances
Personal allowance Income limit Transferable marriage allowance1 Married couple’s allowance1 (relief at 10%) Either partner born before 6.4.1935 Income limit Minimum where income exceeds limit Blind person’s allowance Dividend allowance Personal savings allowance Basic rate taxpayers Higher rate taxpayers
2024/25 £ 12,570 100,000 1,260
2025/26 £ 12,570 100,000 1,260
11,080 37,000 4,280 3,070 500
11,270 37,700 4,360 3,130 500
1,000 500
1,000 500
Income Tax Rates Taxable income £ 2024/25 0 – 37,700 37,701 – 125,140 Over 125,140
2025/26 Rate % 0 – 37,700 20 37,701 – 125,140 40 Over 125,140 45
Dividend rate % 8.75 33.75 39.35
Scottish taxpayers. The Scottish Budget is expected on 4 December 2024. Welsh taxpayers. For 2024/25, the Welsh rates and bands were the same as for the rest of the UK (outside Scotland). The draft Welsh Budget is expected on 10 December 2024. A 0% starting rate for savings income only applies to the extent that such income falls within the first £5,000 of taxable income. If taxable non-savings income exceeds the limit, the starting rate does not apply. A 0% rate applies to savings income falling within the personal savings allowance. Income taxable at the starting rate for savings does not fall within the personal savings allowance. A 0% rate applies to dividend income within the dividend allowance. The trust rate of income tax is 45%. The dividend trust rate is 39.35%. 1
Available for civil partners.
National Insurance Contributions 2025/26 Class 1 (Earnings related) Employees Weekly earnings First £242 £242.01 – £967 Over £967 Employers Weekly earnings First £96 Over £96
Nil 8% 2%
Nil 15%
Employees’ rates are reduced to 1.85% for married women with valid certificates of election but the 2% rate above £967 still applies. Rates are nil for employees over state pensionable age. Normal employers’ contributions are still payable. Employers’ rates for employees under 21, apprentices under 25 and eligible veterans are nil on earnings up to £967 per week, and for eligible employees in freeport and investment zone tax sites on earnings up to £481 per week. Employment allowance (per employer) – £10,500 a year. Class 1A and Class 1B – 15% Class 2 (Self-employed) – Flat rate £3.50 a week (voluntary). Small profits threshold (SPT) £6,845 a year. Class 3 (Voluntary contributions) – £17.75 a week. Class 4 (Self-employed) – 6% of profits between £12,570 and £50,270 a year. 2% of profits above £50,270 a year.
Inheritance Tax Nil-rate band1 Residence nil-rate band1 Rate of tax on excess Chargeable lifetime transfers
2024/25 £325,000 £175,000 40%2 20%
Annual gifts of up to £3,000 per donor are exempt. 1 2
Unused nil-rate band is transferable to spouse or civil partner. 36% where 10% or more of the net estate is left to charity.
2025/26 £325,000 £175,000 40%2 20%
Capital Gains Tax Annual exempt amounts 2025/26 Individuals, disabled trusts and, for year of death and next two years, personal representatives Trusts generally Rates 2025/26 Individuals: Standard rate Higher rate Gains on residential property Gains on carried interest Trustees and PRs Gains to which business asset disposal relief applies2 Gains to which investors’ relief applies3
£ 3,000 1,500 18%1 24%1 18%/24% 32% 24%1 14% 14%
Corporation Tax Financial Year to Main rate Small profits rate 19% rate limit marginal relief limit marginal relief fraction effective marginal rate
31/3/2025 25% 19% £50,000 £250,000 3/200 26.5%
31/3/2026 25% 19% £50,000 £250,000 3/200 26.5%
Stamp Taxes Shares and marketable securities Transfers of land and buildings5 Residential (on band of consideration)6,7,8 £0 – £125,000 £125,001 – £250,000 £250,001 – £925,000 £925,001 – £1,500,000 Over £1,500,000 Non-residential (on band of consideration) £0 – £150,000 £150,001 – £250,000 Over £250,000 Leases (Rent – on band of net present value)5 Residential Non-residential £0 – £125,000 £0 – £150,000 Over £125,000 £150,001 – £5,000,000 n/a Over £5,000,000 Freeport and investment zone special tax sites Qualifying purchases receive full SDLT relief.
0.5%4 0% 2% 5% 10% 12% 0% 2% 5% 0% 1% 2%
For disposals on or after 30 October 2024. Subject to lifetime limit on gains of £1 million. Subject to lifetime limit on gains of £1 million (disposals on or after 30 October 2024). 4 Rounded up to the nearest multiple of £5. Transactions of £1,000 or less exempt. 5 In Scotland land and buildings transaction tax. In Wales land transaction tax. 6 Where the consideration exceeds £500,000 and the purchase is by – or by a partnership including – a company or collective investment scheme enveloping the property, the rate is 17% of the total consideration. 7 Where the consideration is no more than £500,000 and the purchaser is a firsttime buyer, the 0% band is increased to £300,000 (and the 5% rate applies to any consideration above £300,000 up to £500,000). 8 Rates are increased by 5 percentage points for certain purchases, including purchases of additional residential properties by individuals. Transactions under £40,000 are excluded. Rates are increased by 2 percentage points for purchases by non-UK residents. 1
2
3
Car Benefit 2025/26 CO2 emissions g/km 0 1-50 1-50 1-50 1-50 1-50 51–54 55–59 60–64 65–69 70–74 75–79 80–84 85–89 90–94
Electric range (miles) N/A >130 70-129 40-69 30-39 <30
% of list price 3 3 6 9 13 15 16 17 18 19 20 21 22 23 24
CO2 emissions g/km 95–99 100-104 105-109 110-114 115-119 120-124 125-129 130-134 135-139 140-144 145-149 150-154 155 or more
% of list price 25 26 27 28 29 30 31 32 33 34 35 36 37
4% supplement (up to max 37%) applies to diesel cars which do not meet the RDE2 standard.
Car Fuel Benefit For 2025/26, car fuel benefit is calculated by applying the above car benefit percentage to a figure of £28,200.
Tax-Free Mileage Allowances Employee’s own vehicle Motorcars and vans Up to 10,000 business miles Over 10,000 business miles Each passenger making same trip Motorcycles Cycles
2025/26 45p 25p 5p 24p 20p
Advisory fuel rates for company car from 1 September 2024 Cylinder capacity Petrol Diesel LPG 0-1,400 cc 13p – 11p 0-1,600 cc – 12p – 1,401 cc - 2,000 cc 15p – 13p 1,601 cc - 2,000 cc – 14p – Over 2,000 cc 24p 18p 21p Advisory electric rate for fully electric cars is 7p per mile.
Fixed Rate Deductions: Unincorporated Businesses Vehicle expenditure Motorcars and goods vehicles Up to 10,000 business miles Over 10,000 business miles Motorcycles
Amount per mile 45p 25p 24p
Business use of home Hours worked per month 25 or more 51 or more 101 or more
Amount per month £10 £18 £26
Private use of business premises Number of occupants 1 2 3 or more
Disallowable amount per month £350 £500 £650
Individual Savings Accounts Limits Annual limit Junior ISA annual limit Lifetime ISA annual limit Help to Buy ISA monthly limit
2024/25 £20,000 £9,000 £4,000 £200
2025/26 £20,000 £9,000 £4,000 £200
Investment limit
Income tax relief rate 30% 30% 50%
Investment Reliefs
Enterprise investment scheme £1,000,000 Venture capital trusts £200,000 Seed enterprise investment scheme £200,000 1
Value Added Tax Standard rate Reduced rate Registration threshold (from 1 April 2025) Deregistration limit (from 1 April 2025) Annual accounting scheme turnover limit Cash accounting scheme turnover limit Flat rate scheme turnover limit
20% 5% £90,000 pa £88,000 pa £1,350,000 pa £1,350,000 pa £150,000 pa
Investment limit is £2,000,000 if any amount over £1,000,000 is invested in knowledge-intensive companies. 1
Capital Allowances Dredging (straight-line basis) Writing-down allowance
Rate % 4
Know-how (reducing balance basis) Writing-down allowance
25
Mineral extraction (reducing balance basis) Writing-down allowances General Acquisition of mineral asset
25 10
Patent rights (reducing balance basis) Writing-down allowance
25
Plant and machinery (reducing balance basis) Annual investment allowance – max £1,000,000 pa
100
First-year allowances New cars with CO2 emissions 0 g/km New electric charge-point equipment Full expensing (companies only) main rate expenditure special rate expenditure New assets for use in freeport or investment zone tax sites (companies only) Writing-down allowances Main rate expenditure Cars (other than low-emission cars) Special rate expenditure (including integral features and thermal insulation) Long-life assets
100 100 100 50 100 18 6 6 6
Research and development Allowance
100
Structures and buildings (straight-line basis) Writing-down allowance General Freeport and investment zone tax sites
3 10
Registered Pension Schemes Individual contributions Maximum tax-relievable contributions are the higher of: 100% of taxable UK earnings; or £3,600 (where the scheme applies tax relief at source). 2025/26 Annual allowance Threshold income limit Adjusted income limit Minimum where income exceeds limit Lump sum allowance Lump sum and death benefit allowance
£60,000 £200,000 £260,000 £10,000 £268,275 £1,073,100
2024/25 Annual allowance Threshold income limit Adjusted income limit Minimum where income exceeds limit Lump sum allowance Lump sum and death benefit allowance
£60,000 £200,000 £260,000 £10,000 £268,275 £1,073,100
Unused annual allowance can be c/f for up to three years.
Tax Credits Annual amounts 2024/25 (tax credits end on 5 April 2025) £ Child tax credit Family element 545 Child element (for each child) 3,455 Disabled child element 4,170 Severely disabled child element 5,850 Working tax credit Basic element Lone parent and couple element 30-hour element Disability element Severe disability element Childcare element (up to 70% of costs) maximum eligible cost (1 child) maximum eligible cost (2 or more)
2,435 2,500 1,015 3,935 1,705 Weekly 175 300
Income thresholds Income threshold eligible for child tax credit only Withdrawal rate Income rise disregard Income fall disregard
7,955 19,995 41% 2,500 2,500