Income Tax Rates & Allowances (UK excluding Scotland)
Inheritance Tax is a tax payable upon death or a transfer of assets on certain lifetime gifts. It’s traditionally seen as a tax for the wealthy, and many assume it doesn’t apply to them. But more and more people are falling into the Inheritance Tax net. Here we look at the rates of Inheritance Tax since 2001.
Income Tax Rates & Allowances for Scotland
Personal Allowances
| 2024/25 | 2023/24 | 2022/23 | |
|---|---|---|---|
| Single person | £12,570 | £12,570 | £12,570 |
- Since 2016/17, all individuals will be entitled to the same personal allowance, regardless of the individuals’ date of birth.
- From 6 April 2010, the personal allowances will reduce by £1 for every £2 of income above £100,000 until they are nil.
Income tax rates and taxable bands (UK excluding Scotland)
| 2024/25 | 2023/24 | 2022/23 | |
|---|---|---|---|
| Basic tax rate | 20% | 20% | 20% |
| Income taxed at basic rate |
£37,700 | £37,700 | £37,700 |
| Income taxed at higher rate of 40% if income more than |
£37,700 plus personal allowance | £37,700 plus personal allowance | £37,700 plus personal allowance |
| Income taxed at additional rate of 45% if income more than |
£125,1401 | £125,1401 | £150,0001 |
1 Personal allowance is reduced by £1 for every £2 earned over £100,000
2 Assumes the individual is in receipt of the standard UK personal allowance.