News

Previous Budgets and Spending Statements have already given us a number of Income Tax announcements, and with recent whispers that Income Tax cuts were not feasible from a costings point of view, it is no surprise that there were no new announcements today.

But, with a new tax year starting on 6 April 2024, what are the rates and allowances in place for the upcoming 2024/25 tax year?

• The tax-free personal allowance will remain set at £12,570 (frozen till April 2028).  This will continue to be reduced by £1 for every £2 of income over £100,000.  This means if you earn over £125,140 your personal allowance will be £0.
• The main Income Tax rates remain at 20%, 40% and 45% in England, Wales and Northern Ireland
• The main Income Tax rates will be 19%, 20%, 21%, 42%, 45% and 48% in Scotland
• The dividend tax-free allowance will be £500
• Dividend income will be taxable at the rates of 8.75%, 33.75% and 39.35%

Please do not hesitate to contact one of our Tax Specialists on 01228 711888 if you have any Income Tax queries.