Chartered Accountants and Business Advisers

Income Tax

	2024/25	2023/24
Basic rate band income up to	£37,700	£37,700
Starting rate for savings income	*0%	*0%
Basic rate	20%	20%
Dividend ordinary rate	**8.75%	**8.75%
Higher rate income over	£37,700	£37,700
Higher rate	40%	40%
Dividend upper rate	**33.75%	**33.75%
Additional rate income over	£125,140	£125,140
Additional rate	45%	45%
Dividend additional rate	**39.35%	**39.35%
Starting rate limit (savings income)	*£5,000	*£5,000

Personal Allowance
Basic	#£12,570	#£12,570
Transferable Marriage Allowance for certain married couples
(relief 20%)	£1,260	£1,250

For 2023/24 and 2024/25 Scottish taxpayers are subject to different income tax rates and bands to the rest of the UK.

* If an individual's taxable non-savings income exceeds the starting rate limit, then the starting rate limit for savings will not be available for savings income. For 2023/24 and 2024/25, £1,000 of savings income for basic rate taxpayers (£500 higher rate) may be tax-free.

** For 2023/24 the first £1,000 of dividends are tax-free. For 2024/25 the first £500 of dividends are tax-free.

# Where adjusted net income exceeds £100,000 for both years the basic personal allowance is reduced by £1 for every £2 until it is reduced to Nil.