UK Tax Rates 2024-2025: Complete Guide
Welcome to the definitive guide to UK tax rates for the 2024-2025 tax year. This guide covers all the key tax rates and allowances, from income tax and National Insurance to pension contribution limits, Annual Tax on Enveloped Dwellings (ATED), and more. Whether you’re an individual or a business owner, staying informed helps you plan effectively and remain compliant with HMRC regulations.
Income Tax Rates
Income tax applies to earnings from employment, self-employment, pensions, and investments:
Tax Band | Taxable Income Range | Tax Rate |
---|---|---|
Personal Allowance | Up to £12,570 | 0% |
Basic Rate | £12,571 to £50,270 | 20% |
Higher Rate | £50,271 to £125,140 | 40% |
Additional Rate | Over £125,140 | 45% |
Note: The Personal Allowance is reduced by £1 for every £2 of income above £100,000 and is eliminated entirely at £125,140.
National Insurance Contributions (NICs)
National Insurance is paid by employees, employers, and the self-employed:
Category | Threshold | Rate |
---|---|---|
Class 1 (employees) | Earnings above £12,570 | 12% (2% above £50,270) |
Class 1 (employers) | Earnings above £9,100 | 13.8% |
Class 2 (self-employed) | Profits above £12,570 | £3.45 per week |
Class 4 (self-employed) | Profits above £12,570 | 9% (2% above £50,270) |
Pension Contribution Limits
Pensions offer tax-efficient ways to save for retirement. The key limits for 2024-2025 are:
• Annual Allowance: £60,000 (reduced for incomes over £260,000).
• Lifetime Allowance: Unlimited (abolished in 2023, but tax charges still apply for excessive withdrawals).
Annual Tax on Enveloped Dwellings (ATED)
ATED applies to companies owning residential properties valued over £500,000:
Property Value | Annual Charge |
---|---|
£500,001 to £1 million | £4,150 |
£1,000,001 to £2 million | £8,450 |
£2,000,001 to £5 million | £28,650 |
£5,000,001 to £10 million | £67,050 |
£10,000,001 to £20 million | £134,550 |
Over £20 million | £269,450 |
Stamp Duty Land Tax (SDLT)
For residential property purchases in England and Northern Ireland:
Property Value | Standard Rate | Higher Rate |
---|---|---|
Up to £250,000 | 0% | 3% |
£250,001 to £925,000 | 5% | 8% |
£925,001 to £1.5m | 10% | 13% |
Over £1.5m | 12% | 15% |
Capital Gains Tax (CGT)
Tax is due on profits from selling assets such as shares or property:
Taxpayer Type | Standard Rate | Higher Rate |
---|---|---|
Basic Rate Taxpayer | 10% | 18% (for property) |
Higher/Additional Rate Taxpayer | 20% | 28% (for property) |
How We Can Help
At Accountax, we provide expert advice to simplify your tax obligations and optimize your financial planning. Whether you need assistance with income tax, NICs, SDLT, or ATED, our team is here to help.