Personal tax and benefits
Income Tax bands of taxable income
|
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Basic rate |
£1 to £37,700 |
£1 to £37,700 |
| Higher rate |
£37,701 to £125,140 |
£37,701 to £125,140 |
| Additional rate |
Over £125,140 |
Over £125,140 |
Income Tax rates
| Main rates |
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Basic rate |
20% |
20% |
| Higher rate |
40% |
40% |
| Additional rate |
45% |
45% |
These figures apply to non-savings non-dividend income, including income from employment, property, or pensions. From 2017 to 2018, the main rates were separated into the main rates, the savings rates and the default rates.
Savings rates
| Savings rates |
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Starting rate for savings |
0% |
0% |
| Savings basic rate |
20% |
20% |
| Savings higher rate |
40% |
40% |
| Savings additional rate |
45% |
45% |
These figures apply to savings income.
| Dividend rates |
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Dividend ordinary rate — for dividends otherwise taxable at the basic rate |
8.75% |
8.75% |
| Dividend upper rate — for dividends otherwise taxable at the higher rate |
33.75% |
33.75% |
| Dividend additional rate — for dividends otherwise taxable at the additional rate |
39.35% |
39.35% |
These figures apply to dividend income received above the £2,000 tax-free dividend allowance.
| Default rates |
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Default basic rate |
20% |
20% |
| Default higher rate |
40% |
40% |
| Default additional rate |
45% |
45% |
These figures apply to non-savings and non-dividend income of any taxpayer that is not subject to either the main rates or the Scottish rates of Income Tax.
Starting rates for savings income
|
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Starting rate for savings |
0% |
0% |
| Starting rate limit for savings |
£5,000 |
£5,000 |
Income Tax rates for trustees’ income
|
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Thresholds |
First £1,000 of accumulated and discretionary income charged at dividend ordinary and default basic rates |
£500 de minimis trusts amount |
| Dividend ordinary rate |
8.75% |
8.75% |
| Default basic rate |
20% |
20% |
| Dividend trust rate for accumulated and discretionary dividend income |
39.35% |
39.35% |
| Trust rate for other accumulated and discretionary income |
45% |
45% |
Income Tax allowances
Personal Allowance
|
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Personal allowance |
£12,570 |
£12,570 |
| Income limit for Personal Allowance |
£100,000 |
£100,000 |
| Income limit for Married Couple’s Allowance |
£34,600 |
£37,000 |
The Personal Allowance reduces where the income is above £100,000 — by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of date of birth.
The income limit for Married Couple’s Allowance is an age-related allowance. It is reduced by £1 for every £2 of income over this limit.
Marriage Allowance
|
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Marriage Allowance |
£1,260 |
£1,260 |
This transferable allowance is available to married couples and civil partners who are not in receipt of married couple’s allowance. A spouse or civil partner who is not liable to Income Tax, or not liable at the higher or additional rates, can transfer this amount of their unused personal allowance to their spouse or civil partner. The recipient must not be liable to Income Tax at the higher or additional rates.
Married Couple’s Allowance for those born before 6 April 1935
|
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Maximum amount of Married Couple’s Allowance |
£10,375 |
£11,080 |
| Minimum amount of Married Couple’s Allowance |
£4,010 |
£4,280 |
The relief for this allowance is given at 10%.
Blind Person’s Allowance
|
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Blind Person’s Allowance |
£2,870 |
£3,070 |
Dividend Allowance
|
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Dividend Allowance |
£1,000 |
£500 |
Personal Savings Allowance
|
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Personal Savings Allowance for basic rate taxpayers |
£1,000 |
£1,000 |
| Personal Savings Allowance for higher taxpayers |
£500 |
£500 |
From April 2016, the new Personal Savings Allowance means that basic rate taxpayers do not have to pay tax on the first £1,000 of savings income they receive and higher rate taxpayers do not have tax to pay on their first £500 of savings income.
Company car tax — all cars
| CO2 emissions, g/km |
Electric range (miles) |
Appropriate percentage (%) for 2023 to 2024 |
Appropriate percentage (%) for 2024 to 2025 |
Appropriate percentage (%) for 2025 to 2026 |
Appropriate percentage (%) for 2026 to 2027 |
Appropriate percentage (%) for 2027 to 2028 |
| 0 |
Not applicable |
2 |
2 |
3 |
4 |
5 |
| 1 to 50 |
More than 130 |
2 |
2 |
3 |
4 |
5 |
| 1 to 50 |
70 to 129 |
5 |
5 |
6 |
7 |
8 |
| 1 to 50 |
40 to 69 |
8 |
8 |
9 |
10 |
11 |
| 1 to 50 |
30 to 39 |
12 |
12 |
13 |
14 |
15 |
| 1 to 50 |
Less than 30 |
14 |
14 |
15 |
16 |
17 |
| 51 to 54 |
— |
15 |
15 |
16 |
17 |
18 |
| 55 to 59 |
— |
16 |
16 |
17 |
18 |
19 |
| 60 to 64 |
— |
17 |
17 |
18 |
19 |
20 |
| 65 to 69 |
— |
18 |
18 |
19 |
20 |
21 |
| 70 to 74 |
— |
19 |
19 |
20 |
21 |
21 |
| 75 to 79 |
— |
20 |
20 |
21 |
21 |
21 |
| 80 to 84 |
— |
21 |
21 |
22 |
22 |
22 |
| 85 to 89 |
— |
22 |
22 |
23 |
23 |
23 |
| 90 to 94 |
— |
23 |
23 |
24 |
24 |
24 |
| 95 to 99 |
— |
24 |
24 |
25 |
25 |
25 |
| 100 to 104 |
— |
25 |
25 |
26 |
26 |
26 |
| 105 to 109 |
— |
26 |
26 |
27 |
27 |
27 |
| 110 to 114 |
— |
27 |
27 |
28 |
28 |
28 |
| 115 to 119 |
— |
28 |
28 |
29 |
29 |
29 |
| 120 to 124 |
— |
29 |
29 |
30 |
30 |
30 |
| 125 to 129 |
— |
30 |
30 |
31 |
31 |
31 |
| 130 to 134 |
— |
31 |
31 |
32 |
32 |
32 |
| 135 to 139 |
— |
32 |
32 |
33 |
33 |
33 |
| 140 to 144 |
— |
33 |
33 |
34 |
34 |
34 |
| 145 to 149 |
— |
34 |
34 |
35 |
35 |
35 |
| 150 to 154 |
— |
35 |
35 |
36 |
36 |
36 |
| 155 to 159 |
— |
36 |
36 |
37 |
37 |
37 |
| 160 and over |
— |
37 |
37 |
37 |
37 |
37 |
For all cars, drivers must add 4% to their appropriate percentage if the car is propelled solely by diesel (up to a maximum of 37%). Cars that meet the Real Driving Emissions Step 2 (RDE2) standard are exempt from the diesel supplement. The RDE2 standard sets a maximum permitted level of car NOx emissions in real world driving situations, and it is measured through portable emissions-measuring equipment in a variety of real driving trips. Rates for fully electric cars (0 grams per km) are capped at 5%.
Rates for ultra-low emission cars (1 to 74 grams per km) are capped at 20% for the tax year 2025 to 2026. They are capped at 21% for the tax years 2026 to 2027 and 2027 to 2028. Rates for bands 75 to 170 grams per km and above will remain frozen for the 2026 to 2027 and 2027 to 2028 tax years.
National Insurance contributions (NICs)
Employee and employer Class 1 rates and thresholds (£ per week)
|
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Lower Earnings Limit (LEL) |
£123 |
£123 |
| Primary Threshold (PT) |
£242 |
£242 |
| Secondary Threshold (ST) |
£175 |
£175 |
| Upper Earnings Limit (UEL) |
£967 |
£967 |
| Upper Secondary Threshold for under 21s |
£967 |
£967 |
| Apprentice Upper Secondary Threshold (AUST) for under 25s |
£967 |
£967 |
| Freeport Upper Secondary Threshold (FUST) |
£481 |
£481 |
| Investment Zones Upper Secondary Threshold (IZUST) |
£481 |
£481 |
| Veteran Upper Secondary Threshold (VUST) |
£967 |
£967 |
| Employment Allowance (per employer) |
£5,000 per year |
£5,000 per year |
From 6 April 2022 to 5 November 2022, the main and additional rates of Class 1 National Insurance contributions (except for the 0% bands) included a 1.25 percentage point increase due to the Health and Social Care Levy.
The National Insurance contributions Primary Threshold was set at £190 per week between 6 April to 5 July 2022, then increased to £242 per week in line with the announcement made at Spring Statement 2022 to align the National Insurance contributions Primary Threshold and Lower Profits Limit with the Personal Allowance for Income Tax.
Employee’s (primary) Class 1 contribution rates (£ per week)
| Earnings band |
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Below Lower Earnings Limit (LEL) |
Not applicable |
Not applicable |
| Lower Earning Limit (LEL) to Primary Threshold (PT) |
0% |
0% |
| Primary Threshold (PT) to Upper Earnings Limit (UEL) |
Between 6 April 2023 and 5 January 2024: 12%
Between 6 January 2024 and 5 April 2024: 10% |
10% |
| Above Upper Earnings Limit (UEL) |
2% |
2% |
Married woman’s reduced rate for (primary) Class 1 contribution rates
|
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Weekly earnings from between the Primary Threshold (PT) and Upper Earnings Limit (UEL) |
Between 6 April 2023 and 5 January 2024: 5.85%
Between 6 January 2024 and 5 April 2024: 3.85% |
3.85% |
| Weekly earnings above the Upper Earnings Limit (UEL) |
2% |
2% |
Employer’s (secondary) Class 1 contribution rates
| Earnings band |
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Below Secondary Threshold (ST) |
0% |
0% |
| Above Secondary Threshold (ST) |
13.8% |
13.8% |
Employer’s (secondary) Class 1 contribution rates for employees under 21
| Earnings band |
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Below Upper Secondary Threshold (UST) |
0% |
0% |
| Above Upper Secondary Threshold (UST) |
13.8% |
13.8% |
Employer’s (secondary) Class 1 contribution rates for Apprentices under 25
| Earnings band |
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Below Apprentice Upper Secondary Threshold (AUST) |
0% |
0% |
| Above Apprentice Upper Secondary Threshold (AUST) |
13.8% |
13.8% |
Employer’s (secondary) Class 1 contribution rates for eligible employees of Freeports
| Earnings band |
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Below Freeports Upper Secondary Threshold (FUST) |
0% |
0% |
| Above Freeports Upper Secondary Threshold (FUST) |
13.8% |
13.8% |
Employer’s (secondary) Class 1 contribution rates for eligible employees of Investment Zones
| Earnings band |
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Below Investment Zone Upper Secondary Threshold (IZUST) |
0% |
0% |
| Above Investment Zone Upper Secondary Threshold (IZUST) |
13.8% |
13.8% |
Employer’s (secondary) Class 1 contribution rates for qualifying veterans
| Earnings band |
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Below Veterans Upper Secondary Threshold (VUST) |
0% |
0% |
| Above Veterans Upper Secondary Threshold (VUST) |
13.8% |
13.8% |
Self-employed Class 2 contributions rates and thresholds (£ per week)
Class 2 thresholds (£ annual profit)
|
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Small Profits Thresholds (SPT) |
£6,725 |
£6,725 |
| Lower Profits Thresholds (LPT) |
£12,570 |
Not applicable |
At Spring Statement 2022, it was announced that self-employed individuals earning between the Small Profits Threshold and the Lower Profits Limit would not pay Class 2 National Insurance contributions while continuing to build up entitlement to contributory benefits. The new level at which Class 2 National Insurance contributions is paid is the Lower Profits Threshold. This was set at £11,908 in 2022 to 2023 to align with the Lower Profits Limit, and along with the Lower Profits Limit, will increase to £12,570 for 2023 to 2024.
Class 2 contribution rates (£ per week)
| Annual Profits Band |
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Below Small Profits Threshold (SPT) |
£3.45 (voluntary) |
£3.45 (voluntary) |
| Small Profits Threshold (SPT) to Lower Profits Threshold (LPT) |
0% |
0% |
| Above Lower Profits Threshold (LPT) |
£3.45 |
£0 |
| Special Class 2 rate for share fisherman |
£4.10 |
£4.10 |
| Special Class 2 rate for volunteer development workers |
£6.15 |
£6.15 |
Class 3 National Insurance contributions: other rates and thresholds (£ per week)
|
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Voluntary contributions |
£17.45 |
£17.45 |
Self-employed Class 4 rates and thresholds (£ per year)
|
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Lower Profits Limit (LPL) |
£12,570 |
£12,570 |
| Upper Profits Limit (UPL) |
£50,270 |
£50,270 |
The main and additional rates of Class 4 National Insurance contributions are assessed on an annual basis, therefore an average rate was applied to ensure consistency and fairness with Class 1 National Insurance contributions payers who paid the increased National Insurance contributions rate between 6 April and 5 November 2022.
Self-employed National Insurance contributions are calculated on an annual basis, therefore, the Lower Profits Limit was set at an average threshold of £11,908 for the 2022 to 23 tax year which is equivalent to 13 weeks of the threshold at £9,880 and 39 weeks at £12,570, reflecting the position for employees.
Class 4 contribution rates
| Annual Profits band |
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Below Lower Profits Limit (LPL) |
0% |
0% |
| Lower profits Limit to Upper Profits Limit (UPL) |
9% |
8% |
| Above Upper Profits Limit (UPL) |
2% |
2% |
Tax credits, Child Benefit and Guardian’s Allowance
Following the publication of Consumer Price Index (CPI) figures for September 2023, the government announced at Autumn Statement 2023 the new benefits rates for 2024 to 2025.
Working Tax Credit (£ per year unless stated)
|
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Basic element |
£2,280 |
£2,435 |
| Couple and lone parent element |
£2,340 |
£2,500 |
| 30 hour element |
£950 |
£1,015 |
| Disabled worker element |
£3,685 |
£3,935 |
| Severe disability element |
£1,595 |
£1,705 |
Childcare element of Working Tax Credit (£ per year unless stated)
|
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Maximum eligible cost for one child |
£175 per week |
£175 per week |
| Maximum eligible cost for two or more children |
£300 per week |
£300 per week |
| Percentage of eligible costs covered |
70% |
70% |
Child Tax Credit (£ per year unless stated)
|
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Family element |
£545 |
£545 |
| Child element |
£3,235 |
£3,455 |
| Disabled child element |
£3,905 |
£4,170 |
| Severely disabled child element |
£5,480 |
£5,850 |
| Income threshold |
£7,455 |
£7,955 |
| Withdrawal rate (per cent) |
41% |
41% |
| First threshold for those entitled to Child Tax Credit only |
£18,725 |
£19,995 |
| Income rise disregard |
£2,500 |
£2,500 |
| Income fall disregard |
£2,500 |
£2,500 |
Child Benefit per week
|
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Eldest or only child |
£24 |
£25.60 |
| Other children |
£15.90 |
£16.95 |
Guardian’s Allowance per week
|
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Guardian’s Allowance |
£20.40 |
£21.75 |
Capital, assets and property
Pensions tax relief
|
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Lifetime Allowance limit |
No Lifetime Allowance charge |
No Lifetime Allowance charge |
| Lump Sum Allowance |
Not applicable |
£268,275 |
| Lump Sum and Death Benefit Allowance |
Not applicable |
£1,073,100 |
| Overseas Transfer Allowance |
Not applicable |
£1,073,100 |
| Annual Allowance Limit |
£60,000 |
£60,000 |
| Money Purchase Annual Allowance |
£10,000 |
£10,000 |
| Tapered Annual Allowance (applies when an individual has ‘adjusted income’ over this amount provided the ‘threshold income’ test is met) |
£260,000 |
£260,000 |
Tax free savings accounts
|
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Individual Savings Account (ISA) subscription limit |
£20,000 |
£20,000 |
| Junior ISA subscription limit |
£9,000 |
£9,000 |
| Lifetime ISA (LISA) subscription limit |
£4,000 |
£4,000 |
| Child Trust Fund (CTF) subscription limit |
£9,000 |
£9,000 |
Capital Gains Tax
Main rates for individuals other than gains on residential property (not eligible for Private Residence Relief) and carried interest
|
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Income Tax basic rate payer |
10% |
10% |
| Income Tax higher rate payer |
20% |
20% |
Rates for individuals (for gains on residential property not eligible for Private Residence Relief, and carried interest)
|
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Income Tax basic rate payer |
18% |
18% |
| Income Tax higher rate payer |
28% |
28% |
Main rate for trustees and personal representatives other than gains on residential property (not eligible for Private Residence Relief) and carried interest
| Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| 20% |
20% |
Rate for trustees and personal representatives (for gains on residential property not eligible for Private Residence Relief)
| Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| 28% |
28% |
Rate for personal representatives for gains on carried interest
| Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| 28% |
28% |
Annual exempt amount (AEA) for individuals and personal representatives
| Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| £6,000 |
£3,000 |
Annual exempt amount for most trustees
| Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| £3,000 |
£1,500 |
Rate on gains subject to business asset disposal relief
| Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| 10% |
10% |
Rate on gains subject to investors’ relief
| Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| 10% |
10% |
Business asset disposal relief: lifetime limit on qualifying gains
| Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| £1 million |
£1 million |
Investors’ relief: lifetime limit on gains for external investors
| Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| £10 million |
£10 million |
Inheritance Tax
|
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Rate (for estates) |
40% |
40% |
| Reduced rate (for estates leaving 10% or more to charity) |
36% |
36% |
| Rate (for chargeable lifetime transfers) |
20% |
20% |
| Nil-rate band limit |
£325,000 |
£325,000 |
| Residence nil-rate band limit |
£175,000 |
£175,000 |
| Taper threshold for residence nil-rate band |
£2 million |
£2 million |
Stamp Duty Land Tax — residential property from 23 September 2022 to 31 March 2025
| Property value |
Rate (on portion of value above threshold) |
Rate (on portion of value above threshold) if purchase is of an additional residential property |
Rate (on portion of value above threshold) on or after 1 April 2021 if purchase is of residential property by certain non-UK residents |
Rate (on portion of value above threshold) on or after 1 April 2021 if purchase is of an additional residential property and by certain non-UK residents |
| £0 to £250,000 |
0% |
3% |
2% |
5% |
| £250,001 to £925,000 |
5% |
8% |
7% |
10% |
| £925,001 to £1.5 million |
10% |
13% |
12% |
15% |
| Over £1.5 million |
12% |
15% |
14% |
17% |
Check HMRC guidance on whether the higher rate applies and whether a purchase is a ‘non-resident’ transaction.
| Net Present Value (NPV) of the rent |
Rate between 23 September 2022 and 31 March 2025 (on portion of value above threshold) |
| £0 to £250,000 |
0% |
| Over £250,000 |
1% |
Stamp Duty Land Tax — rates for first-time buyers purchasing properties worth £625,000 or less from 23 September 2022 to 31 March 2025
| Property value |
Rate (on portion of value above threshold) if purchase qualified for first-time buyer relief |
| £0 to £425,000 |
0% |
| £425,001 to £625,000 |
5% |
Stamp Duty Land Tax — non-residential property
Purchase and Premium Transactions
| Property Value |
Rate on or after 17 March 2016 (on portion of value above threshold) |
| £0 to £150,000 |
0% |
| £150,001 to £250,000 |
2% |
| Over £250,000 |
5% |
| Net Present Value (NPV) of the lease |
Rate on or after 17 March 2016 (on portion of value above threshold) |
| £0 to £150,000 |
0% |
| £150,001 to £5 million |
1% |
| Over £5 million |
2% |
Annual Tax on Enveloped Dwellings (ATED)
The ATED charges increase automatically each year in line with inflation (based on the previous September’s Consumer Price Index (CPI)).
The ATED annual charges will rise by 6.7% from 1 April 2024 in line with the September 2023 CPI. The following table shows the property value band and what the revised charges will be for the 2023 to 2024 and 2024 to 2025 chargeable period.
| Taxable value of the property |
Charge for tax year 2023 to 2024 |
Charge for tax year 2024 to 2025 |
| £500,001 to £1 million |
£4,150 |
£4,400 |
| £1,000,001 to £2 million |
£8,450 |
£9,000 |
| £2,000,001 to £5 million |
£28,650 |
£30,550 |
| £5,000,001 to £10 million |
£67,050 |
£71,500 |
| £10,000,001 to £20 million |
£134,550 |
£143,550 |
| £20,000,001 and over |
£269,450 |
£287,500 |
Stamp Duty and Stamp Duty Reserve Tax
No Stamp Duty is charged where the certified consideration is less than £1,000.
Stamp Duty is charged on the purchase of own shares by a company under section 690 Companies Act 2006. The SH03 form is the chargeable instrument.
Where an instrument transfers either Intellectual Property (IP) or goodwill and shares, Stamp Duty is not chargeable on the consideration that relates to the IP or goodwill. A just and reasonable apportionment must be made.
Where an instrument grants a call option, and is itself a marketable security, Stamp Duty is charged at 0.5% of the consideration given for the premium.
Transfers of, and agreements to, transfer securities
|
Standard Rate |
Higher Rate |
| Stamp Duty |
0.5% (rounded up to next £5) |
Not applicable |
| Stamp Duty Reserve Tax |
0.5% |
Not applicable |
Issue of securities to clearance services and depositary receipt issuers
|
Standard Rate |
Higher Rate |
| Stamp Duty |
Not applicable |
Not applicable |
| Stamp Duty Reserve Tax |
Not applicable |
1.5% |
Following EU and UK court decisions in 2009 and 2012, HMRC does not seek to collect the 1.5% charge on issues and certain related transfers transfers integral to capital raising. UK legislation providing for the charge on these transactions was not amended as taxpayers are able to rely on the direct effect of EU law. The government will legislate in Finance Bill 2023-24 to ensure that the existing 0% charges under Stamp Duty and Stamp Duty Reserve Tax on issues (and certain related transfers) of securities onto foreign markets, will remain in place and be brought permanently into UK law following the changes in the Retained EU Law (Revocation and Reform) Act 2023 taking effect. The legislation will take effect from 1 January 2024.
Some clearance services choose to elect into the standard 0.5% STS regime. No 1.5% charge arises on issues or transfers to such clearance services.
Transfers of securities to clearance services and depositary receipt issuers|
|
Standard Rate |
Higher Rate |
| Stamp Duty |
Not applicable |
1.5% (rounded up to next £5) |
| Stamp Duty Reserve Tax |
Not applicable |
1.5% |
Rates for transfers on sale of interests in partnerships which hold shares and certain other securities
The Stamp Duty charge is capped at 0.5% of the market value of any shares held by the partnership (less any loans secured on them), multiplied by the percentage partnership interest transferred.
Bearer instruments
| Transaction |
Stamp Duty |
Stamp Duty Reserve Tax |
| Issue of bearer instrument |
1.5% of market value |
Not applicable |
| Transfer of bearer instrument |
1.5% (if no duty charged on issue) |
0.5% |
| Issue or transfer of non-UK bearer instrument by usage |
0.2% of market value |
Not applicable |
| Issue or transfer of deposit certificate for stock of single non-UK company |
0.2% of market value |
Not applicable |
Following EU and UK court decisions in 2009 and 2012, HMRC will does not seek to collect the 1.5% (or 0.2%) charge on issues of bearer instruments. UK legislation providing for the charge on these transactions was not amended as taxpayers are able to rely on the direct effect of EU law. The government will legislate in Finance Bill 2023-24 to ensure that the existing 0% charges under Stamp Duty and Stamp Duty Reserve Tax on issues of bearer instruments will remain in place and be brought permanently into UK law following the changes in the Retained EU Law (Revocation and Reform) Act 2023 taking effect. The legislation will take effect from 1 January 2024.
In addition, in 2015 the Companies Act 2006 was amended to prohibit the creation of bearer shares by UK companies, and all existing bearer shares had to be cancelled or converted into registered shares. Therefore, the charge remains only on the transfer on sale of bearer shares issued by or on behalf of non-UK companies, if the transfer occurs in the UK. It may also apply on the transfer of certain bearer debt securities.
Stamp Duty on legacy land transactions
Where an agreement for a land transaction was entered into on or before 10 July 2003, but the instrument legally completing that contract is executed after that date, then the transaction will be subject to Stamp Duty, not Stamp Duty Land Tax. However, if the contract was not substantially performed before 10 July 2003 and has been varied, or rights under it have been assigned or sub-sold after 10 July 2003, Stamp Duty Land Tax may apply on completion.
If an instrument was executed to complete a land transaction at the time of the original transfer (but is only now being presented to HMRC), then the rate in force at that time will apply.
For rates before 28 March 2000, see the Stamp Taxes Manual, Appendix C, pages 324 to 334 on the National Archives website.
Freehold conveyances and transfers for instruments legally completing contracts made on or after 3 July 1997
| Certified transfer value |
Instruments executed between 28 March 2000 and 16 March 2005 |
Instruments executed between 17 March 2005 and 22 March 2006 |
Instruments executed after 22 March 2006 |
| £60,000 and under |
nil |
nil |
nil |
| £120,000 and under |
1% |
nil |
nil |
| £125,000 and under |
1% |
1% |
nil |
| £250,000 and under |
1% |
1% |
1% |
| £500,000 and under |
3% |
3% |
3% |
| Over £500,000 or uncertified |
4% |
4% |
4% |
For instruments legally completing contracts made on or before 2 July 1997, the rate is 1%. The Stamp Duty is rounded to the next £5. No duty is charged on instruments containing a certified transfer value of £30,000 and under.
Leasehold property: average rent of lease
The rates in the following table are based on the average rent of the lease.
Stamp Duty rates: leasehold — average rent
| Term of lease |
Rate |
| 7 years or less — annual rent £5,000 or less |
nil |
| 7 years or less — annual rent more than £5,000 |
1% |
| 7 to 35 years |
2% |
| 35 to 100 years |
12% |
| Over 100 years |
24% |
Leasehold property: lease premium
The rates in the following table are based on the certified value in the transfer document.
Stamp Duty rates: leasehold — on lease premium
| Certified value Rate |
Rate |
| £60,000, annual rent £600 or less |
nil |
| £250,000 |
1% |
| £500,000 |
3% |
| More than £500,000 |
4% |
Residential Property Developer Tax
| Rate from 1 April 2022 onwards |
UK annual allowance |
| 4% |
£25 million |
Business and financial services
Corporation Tax rates
|
Financial year 2022 to 2023 |
Financial year 2023 to 2024 |
Financial year 2024 to 2025 |
| Main rate |
19% |
25% |
25% |
| Small profits rate |
Not applicable |
19% |
19% |
| Lower threshold |
Not applicable |
£50,000 |
£50,000 |
| Upper threshold |
Not applicable |
£250,000 |
£250,000 |
| Marginal relief standard fraction |
Not applicable |
3/200ths |
3/200ths |
| North Sea oil and gas ring fence profits |
See footnote |
See footnote |
See footnote |
Marginal relief is available for companies with profits between £50,000 and £250,000. Find out to how to calculate marginal relief.
For North Sea oil and gas ring fence profits the main rate is 30% and the small profits rate is 19%. The marginal relief ring fence fraction is 11/400ths. From April 2023 the marginal relief ring fence fraction will remain 11/400ths and the lower and upper limits for ring fence profits will change from £300,000 and £1.5 million respectively to align with the non-ring fence thresholds.
Corporation Tax allowance and reliefs
|
Financial year 2023 to 2024 |
Financial year 2024 to 2025 |
| Plant and machinery: main rate expenditure |
18% |
18% |
| Plant and machinery: special rate expenditure |
6% |
6% |
| Structures and Building Allowance (SBA) |
3% |
3% |
| Annual investment allowance (AIA) |
£1 million |
£1 million |
| Enhanced Capital Allowances in Freeports |
100% |
100% |
| Enhanced Capital Allowances in Investment Zones |
100% |
100% |
| Enhanced Structures and Buildings Allowance in Freeports |
10% |
10% |
| Enhanced Structures and Buildings Allowance in Investment Zones |
10% |
10% |
| 50% Special Rate First Year Allowance |
50% |
50% |
| Full Expensing: 100% First Year Allowance |
100% |
100% |
| Research and Development (R&D) tax credits SME scheme deduction rate |
186% |
Not applicable |
|
R&D SME payable credit |
10% |
Not applicable |
|
R&D Intensive SME deduction rate |
Not applicable |
186% |
|
R&D Intensive SME payable credit |
14.5% |
14.5% |
|
R&D Intensive SME intensity ratio |
40% |
30% |
|
R&D Expenditure Credit |
20% |
Not applicable |
|
R&D Merged Scheme |
Not applicable |
20% |
| Patent Box |
10% |
10% |
| Film tax reflief |
25% or 34% |
25% or 34% |
| High-end TV tax relief |
25% or 34% |
25% or 34% |
| Videogames tax relief |
25% or 34% |
25% or 34% |
| Animation tax relief |
25% or 39% |
25% or 39% |
| Children’s TV tax relief |
25% or 39% |
25% or 39% |
| Open ended investment companies and authorised unit trusts |
20% |
20% |
From 1 January 2024 an Audio-Visual Expenditure Credit and a Video Games Expenditure Credit will be implemented. The Video Games Expenditure Credit will have a rate of 34%. Under the Audio-Visual Expenditure Credit, film and high end TV will be eligible for a rate of 34% and animation and children’s TV will be eligible for a rate of 39%.
For open ended investment companies and authorised unit trusts the applicable corporation tax rate is 20 per cent.
Cultural corporation tax allowance and reliefs
|
Financial year 2021 to 2022 (prior to 27 October 2021) |
Financial year 2021 to 2022 (after 20 October 2021) |
Financial year 2022 to 2023 |
Financial year 2023 to 2024 |
Financial year 2024 to 2025 |
| Museums and Galleries Exhibition Tax Relief |
20% or 25% |
45% or 50% |
45% or 50% |
45% or 50% |
45% or 50% |
| Theatre Tax Relief |
20% or 25% |
45% or 50% |
45% or 50% |
45% or 50% |
45% or 50% |
| Orchestra Tax Relief |
25% |
50% |
50% |
50% |
50% |
For Museums and Galleries Exhibition Tax Relief, two rates of reliefs are provided. The lower for non-touring productions and the higher for touring productions.
For Theatre Tax Relief, two rates of reliefs are provided. The lower for non-touring productions and the higher for touring productions.
Pillar 2 Global Minimum Tax
|
For accounting periods beginning on or after 31 December 2023 |
| Global revenue threshold |
€750 million |
| Multinational Top-up Tax — Minimum Effective Tax Rate |
15% |
| Domestic Top-up Tax — Minimum Effective Tax Rate |
15% |
Bank Levy
| |
Chargeable equity and long-term chargeable liabilities |
Short-term chargeable liabilities |
| 1 January 2011 to 28 February 2011 |
0.025% |
0.05% |
| 1 March 2011 to 30 April 2011 |
0.05% |
0.1% |
| 1 May 2011 to 31 December 2011 |
0.0375% |
0.075% |
| 1 January 2012 to 31 December 2012 |
0.044% |
0.088% |
| 1 January 2013 to 31 December 2013 |
0.065% |
0.130% |
| 1 January 2014 to 31 March 2015 |
0.078% |
0.156% |
| 1 April 2015 to 31 December 2015 |
0.105% |
0.21% |
| 1 January 2016 to 31 December 2016 |
0.09% |
0.18% |
| 1 January 2017 to 31 December 2017 |
0.085% |
0.17% |
| 1 January 2018 to 31 December 2018 |
0.08% |
0.16% |
| 1 January 2019 to 31 December 2019 |
0.075% |
0.15% |
| 1 January 2020 to 31 December 2020 |
0.07% |
0.14% |
| 1 January 2021 onwards |
0.05% |
0.1% |
Bank surcharge
|
Rate on profits |
Group allowance |
| January 2016 to April 2023 |
8% |
£25 million |
| April 2023 onwards |
3% |
£100 million |
Diverted Profits Tax
|
Financial year 2022 to 2023 |
Financial year 2023 to 2024 |
Financial year 2024 to 2025 |
| Headline rate |
25% |
31% |
31% |
| Adjusted ring fence profits or notional adjusted ring fence profits |
55% |
55% |
55% |
| Banking surcharge profits or notional banking surcharge |
33% |
33% |
33% |
Digital Services Tax
| 1 April 2020 onwards |
Global revenue threshold |
UK revenue threshold |
UK revenue allowance |
| 2% |
£500 million |
£25 million |
£25 million |
Economic Crime (Anti-Money Laundering) Levy
| Entity or payee size |
UK revenue threshold |
1 April 2023 to 31 March 2024 |
1 April 2024 to 31 March 2025 |
1 April 2025 to March 2026 |
| Small |
10.2 million or less |
Not applicable (exempt) |
Not applicable (exempt) |
Not applicable (exempt) |
| Medium |
More than £10.2 million, not more than £36 million |
£10,000 |
see footnote |
see footnote |
| Large |
More than £36 million, not more than £1 billion |
£36,000 |
see footnote |
see footnote |
| Very large |
More then £1 billion |
£250,000 |
see footnote |
see footnote |
Fee rates are intended to remain unchanged up until the levy review in 2027. However, if the levy is yielding more or less than the desired £100 million a year, rates may need to be updated beforehand.
UK oil and gas taxes
|
Financial year 2022 to 2023 |
Financial year 2023 to 2024 |
Financial year 2024 to 2025 |
| Petroleum revenue tax |
0% |
0% |
0% |
| Ring fence corporation tax |
30% |
30% |
30% |
| Supplementary charge |
10% |
10% |
10% |
For North Sea oil and gas ring fence profits the main rate is 30 per cent and the small profits rate is 19 per cent. The marginal relief ring fence fraction is 11/400ths.
Public Interest Business Protection Tax
|
January 2022 to April 2024 |
| Rate |
75% |
| Threshold of taxable assets |
£100 million |
Energy Profits Levy
| Date |
Rate |
| 26 May 2022 to 31 December 2022 |
25% |
| 1 January 2023 to 31 March 2028 |
35% |
Energy Profits Levy — Energy Security Investment Mechanism
|
Financial year 2023 to 2024 |
| Oil threshold price |
$71.40 per barrel |
| Gas threshold price |
£0.54 per therm |
Electricity Generator Levy
|
January 2023 to 31 March 2023 |
Financial year 2023 to 2024 |
Financial year 2024 to 2025 |
| Rate |
45% |
45% |
45% |
| Benchmark price |
£75 per megawatt hour |
£75 per megawatt hour |
£75 to be uprated by CPI as at Dec 2023 |
| Allowance |
£10 million |
£10 million |
£10 million |
Business rates
|
Financial year 2022 to 2023 |
Financial year 2023 to 2024 |
Financial 2024 to 2025 |
| England standard multiplier |
51.2 pence |
51.2 pence |
54.6 pence |
| England small business multiplier |
49.9 pence |
49.9 pence |
49.9 pence |
Indirect tax
The Budget confirmed that alcohol duty rates under the revised structure to be introduced from 1 August 2023 have been uprated by Retail Price Index (RPI), but the value of Draught Relief has been increased from the previously proposed 5% on qualifying beer and cider and 20% on qualifying wine, spirits, and other fermented products, to 9.2% for qualifying beer and cider and 23% for qualifying wine, spirits, and other fermented products.
Alcohol duty
| Product |
Duty rate from 1 August 2023 (per litre of alcohol in the product) |
| All alcoholic products: less than 3.5% alcohol by volume (ABV) |
£9.27 |
| Still cider and perry: at least 3.5% — less than 8.5% ABV |
£9.67 |
| Sparkling cider and perry: at least 3.5% - not exceeding 5.5% ABV |
£9.67 |
| Beer: at least 3.5% — less than 8.5% ABV |
£21.01 |
| Spirits, wine, and other fermented products: at least 3.5% — less than 8.5% ABV |
£24.77 |
| Sparkling cider and perry: exceeding 5.5% ABV — less than 8.5% ABV |
£24.77 |
| All alcoholic products: at least 8.5% but not exceeding 22% ABV |
£28.50 |
| All alcoholic products: exceeding 22% ABV |
£31.64 |
Wine between 11.5% and 14.5% ABV will be treated if it is 12.5% ABV for the purposes of calculating the charge to alcohol duty from 1 August 2023 up to and including 31 January 2025.
| Product |
Duty rate from 1 August 2023 (per litre of alcohol in the product) |
| All alcoholic products: less than 3.5% ABV |
£8.42 |
| Still cider and perry: at least 3.5% — less than 8.5% ABV |
£8.78 |
| Sparkling cider and perry: at least 3.5% — not exceeding 5.5% ABV |
£8.78 |
| Beer, spirits, wine, and other fermented products: at least 3.5% (but less than 8.5% ABV) |
£19.08 |
| Sparkling cider and perry: exceeding 5.5% — less than 8.5% ABV |
£19.08 |
Tobacco products
Cigarettes
The duty rate for cigarettes will be either the duty rate plus the ad valorem element, or the minimum excise tax, whichever is higher.
|
Duty rate plus ad valorem element |
Minimum excise tax |
| From 15 March 2023 |
An amount equal to 16.5 per cent of the retail price plus £294.72 per 1,000 cigarettes |
£393.45 per 1,000 cigarettes |
| From 22 November 2023 |
An amount equal to 16.5 per cent of the retail price plus £316.70 per thousand cigarettes |
£422.80 per 1,000 cigarettes |
Cigars
|
Duty rate plus ad valorem element |
Minimum excise tax |
| From 15 March 2023 |
£367.61 per kilogram |
Not applicable |
| From 22 November 2023 |
£395.03 per kilogram |
Not applicable |
Hand-rolling tobacco
|
Duty rate plus ad valorem element |
Minimum excise tax |
| From 15 March 2023 |
£351.03 per kilogram |
Not applicable |
| From 22 November 2023 |
£412.32 per kilogram |
Not applicable |
Other smoking tobacco and chewing tobacco
|
Duty rate plus ad valorem element |
Minimum excise tax |
| From 15 March 2023 |
£161.62 per kilogram |
Not applicable |
| From 22 November 2023 |
£173.68 per kilogram |
Not applicable |
Tobacco for heating
|
Duty rate plus ad valorem element |
Minimum excise tax |
| From 15 March 2023 |
£302.93 per kilogram |
Not applicable |
| From 22 November 2023 |
£325.53 per kilogram |
Not applicable |
Gambling duties
Bingo duty
|
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Percentage of bingo promotion profits |
10% |
10% |
General betting duty
|
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Percentage of ‘net stake receipts’ for fixed odds bets and totalisator bets on horse or dog races |
15% |
15% |
| Percentage of ‘net stake receipts’ for financial spread bets |
3% |
3% |
| Percentage of ‘net stake receipts’ for all other spread bets |
10% |
10% |
Pool betting duty
|
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Percentage of net pool betting receipts |
15% |
15% |
Lottery duty
|
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Percentage of the price paid or payable on taking a ticket or chance in a lottery |
12% |
12% |
Remote gaming duty
|
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Percentage of remote gaming profits |
21% |
21% |
Machine games duty
|
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Percentage of the net takings from dutiable machine games with a maximum cost to play not more than 20 pence and a maximum cash prize not more than £10 (Type 1 machines) |
5% |
5% |
| Percentage of net takings from machines which are not Type 1 machines but where the cost to play cannot exceed £5 |
20% |
20% |
| Percentage of net takings from dutiable machine games where the maximum cost to play can exceed £5 |
25% |
25% |
Gaming Duty
| Tax rate |
Gross gaming yield |
| 15% |
£2,686,000 |
| 20% |
£1,852,000 |
| 30% |
£3,243,000 |
| 40% |
£6,845,000 |
| 50% |
Remainder |
| Tax rate |
Gross gaming yield |
| 15% |
£2,686,000 |
| 20% |
£1,852,000 |
| 30% |
£3,243,000 |
| 40% |
£6,845,000 |
| 50% |
Remainder |
Insurance Premium Tax
|
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Standard rate |
12% |
12% |
| Higher rate |
20% |
20% |
Soft Drinks Industry Levy
|
To 22 November 2023 |
From 22 November 2023 |
| Standard rate |
18 pence per litre |
18 pence per litre |
| Higher rate |
24 pence per litre |
24 pence per litre |
Main rates of Climate Change Levy
| Taxable commodity |
Rate from 1 April 2023 |
Rate from 1 April 2024 |
Rate from 1 April 2025 |
| Electricity (£ per kilowatt hour) |
0.00775 |
0.00775 |
0.00775 |
| Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility (£ per kilowatt hour) |
0.00672 |
0.00775 |
0.00775 |
| Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state (£ per kilogram) |
0.02175 |
0.02175 |
0.02175 |
| Any other taxable commodity (£ per kilogram) |
0.05258 |
0.06064 |
0.06064 |
Reduced rates of Climate Change Levy (percentage of main rates payable by holders of a climate change agreement)
| Taxable commodity |
Rate from 1 April 2023 |
Rate from 1 April 2024 |
Rate from 1 April 2025 |
| Electricity (percentage of main rate) |
8% |
8% |
8% |
| Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility (percentage of main rate) |
12% |
11% |
11% |
| Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state (percentage of main rate) |
23% |
23% |
23% |
| Any other taxable commodity (percentage of main rate) |
12% |
11% |
11% |
Carbon Price Support rates of Climate Change Levy and Fuel Duty
|
Rate form 1 April 2021 to March 2026 |
| Carbon price equivalent (£ per tonne of carbon dioxide) |
18.00 |
Supplies of commodity used in electricity generation
|
Rate form 1 April 2021 to March 2026 |
| Natural gas (£ per kilowatt hour) |
0.00331 |
| Liquefied petroleum gas (£ per kilogram) |
0.05280 |
| Coal and other taxable solid fossil fuels (£ per gross gigajoule) |
1.54790 |
| Gas oil; rebated bioblend; and kerosene (£ per litre) |
0.04916 |
| Fuel oil; other heavy oil and rebated light oil (£ per litre) |
0.05711 |
Aggregates Levy
| Taxable commodity |
Rate from 1 April 2023 |
Rate from 1 April 2024 |
Rate from 1 April 2025 |
| Commercially exploited taxable aggregate |
£2 per tonne |
£2.03 per tonne |
£2.08 per tonne |
Landfill Tax: rates for 2023 to 2025
| Material sent to landfill |
Rate from 1 April 2023 |
Rate from 1 April 2024 |
| Coverage |
England and Northern Ireland |
England and Northern Ireland |
| Standard rated (per tonne) |
£102.10 |
£103.70 |
| Lower rated (per tonne) |
£3.25 |
£3.30 |
Landfill Tax was devolved to the Scottish Parliament in April 2015 and to the Welsh Parliament (Senedd Cymru) in April 2018.
Plastic Packaging Tax
This applies to plastic packaging with less than 30% recycled plastic content.
| Date |
Rate |
| From 1 April 2022 |
£200 per tonne |
| From 1 April 2023 |
£210.82 per tonne |
| From 1 April 2024 |
£217.85 per tonne |
Air Passenger Duty rates for 2023 to 2024
Air Passenger Duty (APD) applies to flights aboard aircraft 5.7 tonnes and above.
Rates for direct long-haul flights from Northern Ireland are devolved and set at £0. Direct long-haul journeys are those where the first leg of the journey is to a destination outside Band A.
| Bands (approximate distance in miles from the UK) |
Reduced rate (lowest class of travel) from 1 April 2023 |
Standard rate (other than the lowest class of travel) from 1 April 2023 |
Higher rate from 1 April 2023 |
| Domestic (flights within the UK) |
£6.50 |
£13 |
£78 |
| Band A (0 to 2,000 miles) |
£13 |
£26 |
£78 |
| Band B (2,001 to 5,500 miles) |
£87 |
£191 |
£574 |
| Band C (over 5,500 miles) |
£91 |
£200 |
£601 |
Where a class of travel provides a seat pitch in excess of 1.016 metres (40 inches), the standard rate is the minimum rate that applies.
The higher rate applies to flights on aircraft of 20 tonnes and above, with fewer than 19 seats.
Air Passenger Duty rates for 2024 to 2025
Air Passenger Duty (APD) applies to flights aboard aircraft 5.7 tonnes and above.
Rates for direct long-haul flights from Northern Ireland are devolved and set at £0. Direct long-haul journeys are those where the first leg of the journey is to a destination outside Band A.
| Bands (approximate distance in miles from the UK) |
Reduced rate (lowest class of travel) from 1 April 2024 |
Standard rate (other than the lowest class of travel) from 1 April 2024 |
Higher rate from 1 April 2024 |
| Domestic (flights within the UK) |
£7 |
£14 |
£78 |
| Band A (0 to 2,000 miles) |
£13 |
£26 |
£78 |
| Band B (2,001 to 5,500 miles |
£88 |
£194 |
£581 |
| Band C (over 5,500 miles) |
£92 |
£202 |
£607 |
Where a class of travel provides a seat pitch in excess of 1.016 metres (40 inches), the standard rate is the minimum rate that applies.
The higher rate applies to flights on aircraft of 20 tonnes and above, with fewer than 19 seats.
Fuel Duty — pound per litre unless stated
Light oils
|
Rates from 23 March 2023 until the end of 22 March 2024 |
| Unleaded petrol |
0.5295 |
| Light oil (other than unleaded petrol or aviation gasoline) |
0.6267 |
| Aviation gasoline (Avgas) |
0.3629 |
| Light oil delivered to an approved person for use as furnace fuel |
0.0978 |
Heavy oils
|
Rates from 23 March 2023 until the end of 22 March 2024 |
| Heavy oil (diesel) |
0.5295 |
| Marked gas oil |
0.1018 |
| Fuel oil |
0.0978 |
| Heavy oil other than fuel oil, gas oil or kerosene used as fuel |
0.0978 |
| Kerosene to be used as fuel in an engine, other than in a road vehicle or for heating |
0.1018 |
Biofuels
|
Rates from 23 March 2023 until the end of 22 March 2024 |
| Bio-ethanol |
0.5295 |
| Bio-diesel |
0.5295 |
| Bio-diesel for non-road use |
0.1018 |
| Bio-diesel blended with gas oil not road fuel use |
0.1018 |
Road fuel gases
|
Rates from 23 March 2023 until the end of 22 March 2024 |
| Liquified petroleum gas (£ per kilogram) |
0.2888 |
| Road fuel natural gas including biogas (£ per kilogram) |
0.2257 |
Other fuels
|
Rates from 23 March 2023 until the end of 22 March 2024 |
| Aqua-methanol set aside for road use |
0.0722 |
Vehicle Excise Duty (VED) bands and rates for cars first registered on or after 1 April 2017
The changes to VED rates to take effect from 1 April 2022 are set out in the following tables.
Tax year 2022 to 2023
| CO2 emissions (g/km) |
Standard rate |
First year rate |
| 0 |
0 |
0 |
| 1 to 50 |
165 |
10 |
| 51 to 75 |
165 |
25 |
| 76 to 90 |
165 |
120 |
| 91 to 100 |
165 |
150 |
| 101 to 110 |
165 |
170 |
| 111 to 130 |
165 |
190 |
| 131 to 150 |
165 |
230 |
| 151 to 170 |
165 |
585 |
| 171 to 190 |
165 |
945 |
| 191 to 225 |
165 |
1,420 |
| 226 to 255 |
165 |
2,015 |
| Over 255 |
165 |
2,365 |
Tax year 2023 to 2024
| CO2 emissions (g/km) |
Standard rate |
First year rate |
| 0 |
0 |
0 |
| 1 to 50 |
180 |
10 |
| 51 to 75 |
180 |
30 |
| 76 to 90 |
180 |
130 |
| 91 to 100 |
180 |
165 |
| 101 to 110 |
180 |
185 |
| 111 to 130 |
180 |
210 |
| 131 to 150 |
180 |
255 |
| 151 to 170 |
180 |
645 |
| 171 to 190 |
180 |
1,040 |
| 191 to 225 |
180 |
1,565 |
| 226 to 255 |
180 |
2,220 |
| Over 255 |
180 |
2,605 |
Tax year 2024 to 2025
| CO2 emissions (g/km) |
Standard rate |
First year rate |
| 0 |
0 |
0 |
| 1 to 50 |
190 |
10 |
| 51 to 75 |
190 |
30 |
| 76 to 90 |
190 |
135 |
| 91 to 100 |
190 |
175 |
| 101 to 110 |
190 |
195 |
| 111 to 130 |
190 |
220 |
| 131 to 150 |
190 |
270 |
| 151 to 170 |
190 |
680 |
| 171 to 190 |
190 |
1,095 |
| 191 to 225 |
190 |
1,650 |
| 226 to 255 |
190 |
2,340 |
| Over 255 |
190 |
2,745 |
Budget 2018 announced that new diesel vehicles registered after 1 April 2018 that do not meet the real driving emission step 2 (RDE2) standard will be charged a supplement on their first year rate to the effect of moving up by one VED band.
Alternative fuelled vehicles, including hybrids, bioethanol and liquid petroleum gas, pay a standard rate of £180 per annum, and a discounted first year rate that is £10 lower than the equivalent first year rate for diesel cars that meet the RDE2 standard and petrol cars.
Diesel, petrol and alternative fuelled cars with a list price of over £40,000 in the registration year will pay an additional rate of £410 per annum on top of the standard rate, in the second to sixth year since the first registration (known as Expensive Car Supplement (ECS)). However, electric vehicles are exempted from ECS.
Vehicle Excise Duty bands and rates for cars first registered on or after 1 March 2001
Tax year 2022 to 2023
| Vehicle Excise Duty band |
CO2 emissions (g/km) |
Standard rate |
| A |
Up to 100 |
0 |
| B |
101 to 110 |
20 |
| C |
111 to 120 |
30 |
| D |
121 to 130 |
135 |
| E |
131 to 140 |
165 |
| F |
141 to 150 |
180 |
| G |
151 to 165 |
220 |
| H |
166 to 175 |
265 |
| I |
176 to 185 |
290 |
| J |
186 to 200 |
330 |
| K |
201 to 225 |
360 |
| L |
226 to 255 |
615 |
| M |
Over 255 |
630 |
Band K includes cars emitting over 225g/km registered before 23 March 2006.
Tax year 2023 to 2024
| Vehicle Excise Duty band |
CO2 emissions (g/km) |
Standard rate |
| A |
Up to 100 |
0 |
| B |
101 to 110 |
20 |
| C |
111 to 120 |
35 |
| D |
121 to 130 |
150 |
| E |
131 to 140 |
180 |
| F |
141 to 150 |
200 |
| G |
151 to 165 |
240 |
| H |
166 to 175 |
290 |
| I |
176 to 185 |
320 |
| J |
186 to 200 |
365 |
| K |
201 to 225 |
395 |
| L |
226 to 255 |
675 |
| M |
Over 255 |
695 |
Band K includes cars emitting over 225g/km registered before 23 March 2006.
Tax year 2024 to 2025
| Vehicle Excise Duty band |
CO2 emissions (g/km) |
Standard rate |
| A |
Up to 100 |
0 |
| B |
101 to 110 |
20 |
| C |
111 to 120 |
35 |
| D |
121 to 130 |
160 |
| E |
131 to 140 |
190 |
| F |
141 to 150 |
210 |
| G |
151 to 165 |
255 |
| H |
166 to 175 |
305 |
| I |
176 to 185 |
335 |
| J |
186 to 200 |
385 |
| K |
201 to 225 |
415 |
| L |
226 to 255 |
710 |
| M |
Over 255 |
735 |
Band K includes cars emitting over 225g/km registered before 23 March 2006.
Vehicle Excise Duty bands and rates for cars and vans registered before 1 March 2001
| Engine size |
Tax year 2022 to 2023 |
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| 1549cc and below |
180 |
200 |
210 |
| Above 1549cc |
295 |
325 |
345 |
Vehicle Excise Duty bands and rates for vans registered on or after 1 March 2001
| Vehicle registration date |
Tax year 2022 to 2023 |
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Early Euro 4 and Euro 5 compliant vans |
140 |
140 |
140 |
| All other vans |
290 |
320 |
335 |
Vehicle Excise Duty bands and rates for motorcycles
| Engine Size |
Tax year 2022 to 2023 |
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Not over 150cc |
22 |
24 |
25 |
| 151cc to 400cc |
47 |
52 |
55 |
| 401cc to 600cc |
73 |
80 |
84 |
| Over 600cc |
101 |
111 |
117 |
Vehicle Excise Duty bands and rates for motor tricycles
| Engine Size |
Tax year 2022 to 2023 |
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Not over 150cc |
22 |
24 |
25 |
| All other tricycles |
101 |
111 |
117 |
Vehicle Excise Duty bands and rates for trade licences
| Vehicle |
Tax year 2022 to 2023 |
Tax year 2023 to 2024 |
Tax year 2024 to 2025 |
| Available for all vehicles |
165 |
165 |
165 |
| Available only for bicycle sand tricycles (weighing no more than 450kg without a sidecar) |
101 |
111 |
117 |
Vehicle Excise Duty bands and rates for articulated vehicles and rigid vehicles without trailers
| Vehicle Excuse Duty band (letter and rate number) |
12 months |
6 months |
| A0 |
£165 |
£90.75 |
| B0 |
£200 |
£110 |
| A1 |
£80 |
£40 |
| A2 |
£84 |
£42 |
| A3 |
£100 |
£50 |
| A4 |
£146 |
£73 |
| A5 |
£151 |
£75.50 |
| B1 |
£95 |
£47.50 |
| B2 |
£105 |
£52.50 |
| B3 |
£125 |
£62.50 |
| C1 |
£210 |
£105 |
| C2 |
£265 |
£132.50 |
| C3 |
£289 |
£144.50 |
| D1 |
£300 |
£150 |
| E1 |
£560 |
£280 |
| E2 |
£609 |
£304.50 |
| F |
£690 |
£345 |
| G |
£850 |
£425 |
Vehicle Excise Duty (VED) amounts payable for rigid vehicles with trailers (vehicles with road friendly suspension)
| Heavy goods vehicle (HGV) axles |
Trailer weight category |
Total weight of HGV and trailer, not over |
VED band and rate |
VED rates — 12 months |
VED rates — 6 months |
| 2 |
4,001kg to 12,000 kg |
27,000kg |
B(T)1 |
£230 |
£115 |
| 2 |
Over 12,000kg |
33,000kg |
B(T)3 |
£295 |
£147.50 |
| 2 |
Over 12,000kg |
36,000kg |
B(T)6 |
£401 |
£200.50 |
| 2 |
Over 12,000kg |
38,000kg |
B(T)4 |
£319 |
£159.50 |
| 2 |
Over 12,000kg |
40,000kg |
B(T)7 |
£444 |
£222 |
| 2 |
4,001kg to 12,000kg |
30,000kg |
D(T)1 |
£365 |
£182.50 |
| 2 |
Over 12,000kg |
38,000kg |
D(T)4 |
£430 |
£215 |
| 2 |
Over 12,000kg |
40,000kg |
D(T)5 |
£444 |
£222 |
| 3 |
4,001kg to 12,000kg |
33,000kg |
B(T)1 |
£230 |
£115 |
| 3 |
Over 12,000kg |
38,000kg |
B(T)3 |
£295 |
£147.50 |
| 3 |
Over 12,000kg |
40,000kg |
B(T)5 |
£392 |
£196 |
| 3 |
Over 12,000kg |
44,000kg |
B(T)3 |
£295 |
£147.50 |
| 3 |
4,001kg to 12,000kg |
35,000kg |
C(T)1 |
£305 |
£152.50 |
| 3 |
Over 12,000kg |
38,000kg |
C(T)2 |
£370 |
£185 |
| 3 |
Over 12,000kg |
40,000kg |
C(T)3 |
£392 |
£196 |
| 3 |
Over 12,000kg |
44,000kg |
C(T)2 |
£370 |
£185 |
| 3 |
4,001kg to 10,000kg |
33,000kg |
D(T)1 |
£365 |
£182.50 |
| 3 |
4,001kg to 10,000kg |
36,000kg |
D(T)3 |
£401 |
£200.50 |
| 3 |
10,001kg to 12,000kg |
38,000kg |
D(T)1 |
£365 |
£182.50 |
| 3 |
Over 12,000kg |
44,000kg |
D(T)4 |
£430 |
£215 |
| 4 |
4,001kg to 12,000kg |
35,000kg |
B(T)1 |
£230 |
£115 |
| 4 |
Over 12,000kg |
44,000kg |
B(T)3 |
£295 |
£147.50 |
| 4 |
4,001kg to 12,000kg |
37,000kg |
C(T)1 |
£305 |
£152.50 |
| 4 |
Over 12,000kg |
44,000kg |
C(T)2 |
£370 |
£185 |
| 4 |
4,001kg to 12,000kg |
39,000kg |
D(T)1 |
£365 |
£182.50 |
| 4 |
Over 12,000kg |
44,000kg |
D(T)4 |
£430 |
£215 |
| 4 |
4,001kg to 12,000kg |
44,000kg |
E(T)1 |
£535 |
£267.50 |
| 4 |
Over 12,000kg |
44,000kg |
E(T)2 |
£600 |
£300 |
Vehicle Excise Duty amounts payable for rigid vehicles with trailers (vehicles without road friendly suspension)
| Heavy goods vehicle (HGV) axles |
Trailer weight category |
Total weight of HGV and trailer, not over |
VED band and rate |
VED rates — 12 months |
VED rates — 6 months |
| 2 |
4,001kg to 12,000 kg |
27,000kg |
B(T)1 |
£230 |
£115 |
| 2 |
Over 12,000kg |
31,000kg |
B(T)3 |
£295 |
£147.50 |
| 2 |
Over 12,000kg |
33,000kg |
B(T)6 |
£401 |
£200.50 |
| 2 |
Over 12,000kg |
36,000kg |
B(T)10 |
£609 |
£304.50 |
| 2 |
Over 12,000kg |
38,000kg |
B(T)7 |
£444 |
£222 |
| 2 |
Over 12,000kg |
40,000kg |
B(T)9 |
£604 |
£302 |
| 2 |
4,001kg to 12,000 kg |
27,000kg |
D(T)1 |
£365 |
£182.50 |
| 2 |
Over 12,000kg |
33,000kg |
D(T)4 |
£430 |
£215 |
| 2 |
Over 12,000kg |
36,000kg |
D(T)8 |
£609 |
£304.50 |
| 2 |
Over 12,000kg |
38,000kg |
D(T)5 |
£444 |
£222 |
| 2 |
Over 12,000kg |
40,000kg |
D(T)7 |
£604 |
£302 |
| 3 |
4,001kg to 10,000kg |
29,000kg |
B(T)1 |
£230 |
£115 |
| 3 |
4,001kg to 10,000kg |
31,000kg |
B(T)2 |
£289 |
£144.50 |
| 3 |
10,001kg to 12,000kg |
33,000kg |
B(T)1 |
£230 |
£115 |
| 3 |
Over 12,000kg |
36,000kg |
B(T)3 |
£295 |
£147.50 |
| 3 |
Over 12,000kg |
38,000kg |
B(T)5 |
£392 |
£196 |
| 3 |
Over 12,000kg |
40,000kg |
B(T)8 |
£542 |
£271 |
| 3 |
4,001kg to 10,000kg |
31,000kg |
C(T)1 |
£305 |
£152.50 |
| 3 |
4,001kg to 10,000kg |
33,000kg |
C(T)4 |
£401 |
£200.5 |
| 3 |
10,001kg to 12,000kg |
35,000kg |
C(T)1 |
£305 |
£152.50 |
| 3 |
Over 12,000kg |
36,000kg |
C(T)2 |
£370 |
£185 |
| 3 |
Over 12,000kg |
38,000kg |
C(T)3 |
£392 |
£196 |
| 3 |
Over 12,000kg |
40,000kg |
C(T)5 |
£542 |
£271 |
| 3 |
4,001kg to 10,000kg |
31,000kg |
D(T)1 |
£365 |
£182.50 |
| 3 |
4,001kg to 10,000kg |
33,000kg |
D(T)3 |
£401 |
£200.50 |
| 3 |
4,001kg to 10,000kg |
35,000kg |
D(T)8 |
£609 |
£304.50 |
| 3 |
10,001kg to 12,000kg |
36,000kg |
D(T)1 |
£365 |
£182.50 |
| 3 |
10,001kg to 12,000kg |
37,000kg |
D(T)2 |
£392 |
£196 |
| 3 |
Over 12,000kg |
38,000kg |
D(T)4 |
£430 |
£215 |
| 3 |
Over 12,000kg |
40,000kg |
D(T)6 |
£542 |
£271 |
| 4 |
4,001kg to 12,000kg |
35,000kg |
B(T)1 |
£230 |
£115 |
| 4 |
Over 12,000kg |
40,000kg |
B(T)3 |
£295 |
£147.50 |
| 4 |
4,001kg to 12,000kg |
37,000kg |
C(T)1 |
£305 |
£152.50 |
| 4 |
Over 12,000kg |
40,000kg |
C(T)2 |
£370 |
£185 |
| 4 |
4,001kg to 10,000kg |
36,000kg |
D(T)1 |
£365 |
£182.50 |
| 4 |
4,001kg to 10,000kg |
37,000kg |
D(T)5 |
£444 |
£222 |
| 4 |
10,001kg to 12,000kg |
39,000kg |
D(T)1 |
£365 |
£182.50 |
| 4 |
Over 12,000kg |
40,000kg |
D(T)4 |
£430 |
£215 |
| 4 |
4,001kg to 10,000kg |
38,000kg |
E(T)1 |
£535 |
£267.5 |
| 4 |
4,001kg to 10,000kg |
40,000kg |
E(T)3 |
£604 |
£302 |
| 4 |
10,001kg to 12,000kg |
40,000kg |
E(T)1 |
£535 |
£267.50 |
Rigid goods vehicles
The band and rate payable can be calculated by using the following look-up tables.
In the tables, the letter indicates the Vehicle Excise Duty band the vehicle is in, and the number indicates the rate that is payable as part of that band (for example, B2 would refer to Vehicle Excise Duty band B, and rate 2 as determined by the weight and axle configuration of the vehicle).
For vehicles with trailers, the rate paid depends on whether the vehicle has road friendly suspension.
There are separate tables for vehicles with and without road friendly suspension.
Rigid goods vehicle without trailer
| Revenue weight of vehicle (kg) |
2 axles |
3 axles |
4 or more axles |
| 3,500kg to 7,500kg |
A0 |
A0 |
A0 |
| 7,500kg to 11,999kg |
B0 |
B0 |
B0 |
| 11,999kg to 14,000kg |
B1 |
B1 |
B1 |
| 14,000kg to 15,000kg |
B2 |
B1 |
B1 |
| 15,000kg to 19,000kg |
D1 |
B1 |
B1 |
| 19,000kg to 21,000kg |
D1 |
B3 |
B1 |
| 21,000kg to 23,000kg |
D1 |
C1 |
B1 |
| 23,000kg to 25,000kg |
D1 |
D1 |
C1 |
| 25,000kg to 27,000kg |
D1 |
D1 |
D1 |
| 27,000kg to 44,000kg |
D1 |
D1 |
E1 |
Rigid goods vehicle with trailer
| Revenue weight of vehicle (not trailer) (kg) |
2-axled rigid |
3-axled rigid |
4-axled rigid |
| 11,999kg to 15,000kg |
B(T) |
B(T) |
B(T) |
| 15,000kg to 21,000kg |
D(T) |
B(T) |
B(T) |
| 21,000kg to 23,000kg |
E(T) |
C(T) |
B(T) |
| 23,000kg to 25,000kg |
E(T) |
D(T) |
C(T) |
| 25,000kg to 27,000kg |
E(T) |
D(T) |
D(T) |
| 27,000kg to 44,000kg |
E(T) |
E(T) |
E(T) |
Articulated vehicles
Articulated vehicles — tractive unit with 3 or more axles
| Revenue weight of vehicle (not trailer) (kg) |
One or more semi-trailer axles |
2 or more semi-trailer axles |
3 or more semi-trailer axles |
| 3,500kg to 11,999kg |
A0 |
A0 |
A0 |
| 11,999kg to 25,000kg |
A1 |
A1 |
A1 |
| 25,000kg to 26,000kg |
A3 |
A1 |
A1 |
| 26,000kg to 28,000kg |
A4 |
A1 |
A1 |
| 28,000kg to 29,000kg |
C1 |
A1 |
A1 |
| 28,000kg to 29,000kg |
C1 |
A1 |
A1 |
| 29,000kg to 31,000kg |
C3 |
A1 |
A1 |
| 31,000kg to 33,000kg |
E1 |
C1 |
A1 |
| 33,000kg to 34,000kg |
E2 |
D1 |
A1 |
| 34,000kg to 36,000kg |
E2 |
D1 |
C1 |
| 36,000kg to 38,000kg |
F |
E1 |
D1 |
| 38,000kg to 44,000kg |
G |
G |
E1 |
Articulated vehicles — tractive unit with 2 axles
| Revenue weight of vehicle (not trailer) (kg) |
One or more semi-trailer axles |
2 or more semi-trailer axles |
3 or more semi-trailer axles |
| 3,500kg to 11,999kg |
A0 |
A0 |
A0 |
| 11,999kg to 22,000kg |
A1 |
A1 |
A1 |
| 22,000kg to 23,000kg |
A2 |
A1 |
A1 |
| 23,000kg to 25,000kg |
A5 |
A1 |
A1 |
| 25,000kg to 26,000kg |
C2 |
A3 |
A1 |
| 26,000kg to 28,000kg |
C2 |
A4 |
A1 |
| 28,000kg to 31,000kg |
D1 |
D1 |
A1 |
| 31,000kg to 33,000kg |
E1 |
E1 |
C1 |
| 33,000kg to 34,000kg |
E1 |
E2 |
C1 |
| 34,000kg to 38,000kg |
F |
F |
E1 |
| 38,000kg to 44,000kg |
G |
G |
G |
Heavy Goods Vehicle (HGV) levy
Following the end of the Heavy Goods Vehicle levy suspension period, the new reformed Heavy Goods Vehicle levy comes into effect from 1 August 2023. The rates are set out in the following table.
| Weight category |
Newest, cleanest vehicles (EURO VI or later) |
Older vehicles (Euro V or earlier) |
| From 12 tonnes, and up to 31 tonnes |
£150 |
£195 |
| Above 31 tonnes and up to 38 tonnes |
£360 |
£468 |
| Above 38 tonnes |
£576 |
£749 |
Shorter-term rates are available for foreign vehicles — the daily rate is set at 2% of the annual rate (capped at £9 for Euro VI vehicles and £10 for Euro 0 to V vehicles), and the weekly and monthly rates are 5% and 10% of the annual rate respectively.
VAT
|
April 2023 to 2024 |
April 2024 to 2025 |
| Standard rate |
20% |
20% |
| Reduced rate |
5% |
5% |
| Zero rate |
0% |
0% |
| Exempt |
Not applicable |
Not applicable |
VAT registration and deregistration thresholds
|
From April 2023 |
From April 2024 |
| VAT registration thresholds |
£85,000 |
£85,000 |
| VAT deregistration thresholds |
£83,000 |
£83,000 |
