Guide to Tax Rates for the UK 2023/24: Understanding Income Tax, National Insurance, and More

 

As of my last update in 2022, tax rates 2023 to 2024 in the UK can change each year due to updates in government policies and budgets. For the tax year 2023/24, here are the basic rates for income tax, National Insurance, and other relevant taxes in the UK:

Income Tax Rates 2023/24

England, Wales, and Northern Ireland

• Personal Allowance: £12,570 (tax-free amount)
• Basic Rate: 20%
• On income between £12,571 and £50,270
• Higher Rate: 40%
• On income between £50,271 and £150,000
• Additional Rate: 45%
• On income above £150,000

Scotland

• Personal Allowance: £12,570 (tax-free amount)
• Starter Rate: 19%
• On income between £12,571 and £15,600
• Basic Rate: 20%
• On income between £15,601 and £50,270
• Intermediate Rate: 21%
• On income between £50,271 and £150,000
• Higher Rate: 41%
• On income between £150,001 and £240,000
• Top Rate: 46%
• On income above £240,000

National Insurance Contributions (NICs) 2023/24

• Primary Threshold: £9,880 per year (£190 per week)
• Upper Earnings Limit: £50,270 per year (£967 per week)
• Employee NICs:
• 0% on earnings up to £9,880
• 12% on earnings between £9,881 and £50,270
• 2% on earnings above £50,270

Other Tax Rates 2023/24

• Capital Gains Tax:
• 10% for basic rate taxpayers
• 20% for higher and additional rate taxpayers
• For residential property, 18% for basic rate and 28% for higher and additional rate taxpayers
• Inheritance Tax:
• Nil Rate Band: £325,000
• Residence Nil Rate Band: Up to £175,000
• Tax Rate: 40% on estate value above the nil rate bands
• Stamp Duty Land Tax (England and Northern Ireland):
• Standard Rates for Residential Property:
• Up to £125,000: 0%
• £125,001 to £250,000: 2%
• £250,001 to £925,000: 5%
• £925,001 to £1.5 million: 10%
• Above £1.5 million: 12%
• First-Time Buyer Relief and Shared Ownership Rates may apply

These rates are for the tax year 2023/24, and it's always a good idea to check with official sources or a tax professional for the most up-to-date and accurate information, as tax rates and allowances can change with each new budget.