Income Tax
Income Tax allowances
PLEASE NOTE: the figures shown below only apply to England, Northern Ireland and Wales. Scottish taxpayers have different rates and bands. For more details, visit https://www.gov.scot/publications/scottish-income-tax-2023-2024.
The income tax Personal Allowance for the year 2023/2024 is £12,570 (2022/2023 - £12,570). If your total income is less than this during the tax year, you have no tax to pay.
Tax rates 2023-24: Income Tax Personal Allowances
2023 / 2024 | 2022 / 2023 | |
---|---|---|
Personal Allowance(1) | £12,570 | £12,570 |
Income limit for Personal Allowance(1) | £100,000 | £100,000 |
Income limit for married couple's allowance(2) | £34,600 | £31,400 |
Maximum amount of Married Couple's allowance for people born before 6 April 1935(3) | £10,375 | £9,415 |
Minimum amount of Married Couple's allowance for people born before 6 April 1935(4) | £4,010 | £3,640 |
Blind Person's allowance | £2,870 | £2,600 |
Transferable Tax Allowance for married couples and civil partners(5) | £1,260 | £1,260 |
Dividend Allowance(6) | £1,000 | £2,000 |
Personal Savings allowance for basic rate taxpayers(7) | £1,000 | £1,000 |
Personal Savings allowance for higher rate taxpayers(7) | £500 | £500 |
(1). This allowance is subject to the £100,000 income limit. The individual’s personal allowance is reduced where their income is above this limit. The allowance is reduced by £1 for every £2 above the limit.
(2). This age-related allowance is reduced by £1 for every £2 of income above this limit
(3). This allowance is subject to the £34,600 income limit. The individual’s married couple’s allowance is reduced by £1 for every £2 above the limit. That reduction only applies after any reduction to their personal allowance (see note 1). The individual’s married couple’s allowance is never reduced below the minimum amount. Tax relief for the Married Couple's Allowance is given at the rate of 10%.
(4). This is also the maximum relief for maintenance payments where at least one of the parties is born before 6 April 1935.
(5). 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 rate, can transfer this amount of their personal allowance to their spouse or civil partner. The recipient must not be liable to income tax at the higher or additional rate. The recipient is eligible to a tax reduction of 20% of the transferred amount.
(6). Individuals will not have to pay tax on the first £1,000 of dividend income they receive.
(7). Basic rate taxpayers will not have to pay tax on the first £1,000 of savings income they receive and higher rate taxpayers will not have tax to pay on their first £500 of savings income.
Income tax bands and rates 2023-2024
2023 / 2024 | 2022 / 2023 | |
---|---|---|
Starting rate limit for savings(8) | £0 - £5,000 | £0 - £5,000 |
Starting rate for savings income(8) | 0% | 0% |
Basic rate band | £12,571 - £50,270 | £12,571 - £50,270 |
Basic rate | 20% | 20% |
Higher rate band | £50,271 - £125,140 | £50,271 - £125,140 |
Higher rate | 40% | 40% |
Additional rate band | Over £125,140 | Over £150,000 |
Additional rate | 45% | 45% |
(8). If, after deducting your Personal Allowance from your total income liable to Income Tax, your non-savings income is above the starting rate limit then the starting rate for savings will not apply. Non-savings income includes income from employment, profits from self-employment, pensions, income from property and taxable benefits.
The rates available for dividends are the 8.75 per cent ordinary rate, the 33.75 per cent dividend upper rate and the dividend additional rate of 39.35 per cent.
The self-employed can claim business expenses against their income. So make sure you include all possible justifiable business expenses on your self-assessment form. This also applies to capital allowances for expenditure on plant and equipment, including computers and tools, for example, used for your business.
It is worth remembering you may be able to pay further contributions to your pension, which can utilise unused tax relief.
Since its introduction in 1990, Gift Aid allows taxpayers to receive tax relief on gifts made to qualifying charities.
One other point to remember is if one spouse is a tax payer and the other is not or pays tax at a lower rate it is worth considering switching certain investments to take advantage of their unused tax allowances.
For further information about the 2023 Budget changes please click here.
INFORMATION IS BASED ON OUR CURRENT UNDERSTANDING OF TAXATION LEGISLATION AND REGULATIONS. ANY LEVELS AND BASES OF, AND RELIEFS FROM TAXATION, ARE SUBJECT TO CHANGE.
THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE SOME FORMS OF TAX PLANNING.
TAX TREATMENT IS BASED ON INDIVIDUAL CIRCUMSTANCES AND MAY BE SUBJECT TO CHANGE IN THE FUTURE.
Other Areas of Expertise
Wealth Management
Wealth, just like your health, must be carefully preserved. Your assets need to be protected against the potential threats of erosion by taxation, the effects of inflation and investment risks.
... Read moreSavings & Investments
When someone talks about savings and saving money, it could be referring to a piggy bank or a high interest deposit account. Savings are effectively cash or cash instruments, such as deposit accounts, term bonds etc.
... Read morePensions
When you retire you still need food and shelter as an absolute minimum, but of course you will want to maintain the lifestyle to which you have become accustomed, so unless you can guarantee a large inheritance,
... Read more
Mortgages
Your mortgage is probably the largest financial transaction and commitment you are likely to undertake. Surely then you should seek mortgage advice which is individually tailored to your needs and requirements?
... Read moreLife Assurance
The main purpose of Life Assurance is to provide money for those people who may depend on you financially, in the event that something should happen to you. These people could include family members or business partners.
... Read moreHealth Insurance
Health Insurance is probably one of the most important types of insurance you can own. Without it, an illness or accident can have serious long-term financial implications for you and your family.
... Read more
General Insurance
This is an area of financial planning that is often overlooked. Traditionally, we have our buildings and contents insurance with our mortgage lenders, which may be uncompetitive in a very competitive marketplace. It may also
... Read moreFinancial Planning
Professional Financial Planning is the process which aims to help you realise your ambitions - whatever they may be. As professional financial advisers we can help you make informed decisions about your financial future,
... Read more
Related Topics
Client Testimonials
- Mr & Mrs L of Shropshire
We have always found him to be polite and conscientious and willing to take time to discuss all the relevant points and the merits of each option being considered. We look forward to receiving his advice for many years to come.
- Alyson, Shropshire
I will continue to recommend you to friends, colleagues and business partners
- Peter & Sue, Shropshire
From the outset, we experienced professionalism and - just as importantly - genuine care
- Grace & Rob, Shropshire
We look forward to using your services again in the future and will definitely be recommending you
- Mr & Mrs L of Pontesbury
We have benefitted from your financial advice for the past 15 years. During this time we have been provided with sound financial advice that has seen our investments perform very well indeed.
- Mrs L, Shrewsbury
I should also like to thank you for your excellent service and advice - absolutely first class.....
- Gita, Shrewsbury
the service you provided was faultless. Will get in touch soon
- Mrs S, Shropshire
GOLD STAR FOR CUSTOMER SERVICE!
- Kevin & Michelle, Shropshire
we received a professional service from the whole team. They took the time to understand our circumstances, which were challenging, and found us a product which ticked all our boxes within our timeframes. We wouldn't have been able to find such a good deal independently.
- Mr & Mrs Lewis, Shropshire
We will never forget your kindness and we shall always be grateful
- James, Lincolnshire
people who do such things show they care about the individual rather than look at them as a business deal. I wish you continued success for your business and l will certainly recommend you to family and friends
Request a Call Back
NEWSLETTER
Associations
Contact Details
Masons Independent Financial Advisers
6 St. Johns Hill
Shrewsbury
Shropshire
SY1 1JD
Phone : 01743 244288
The guidance provided within this website is subject to the uk regulatory regime and is therefore primarily targeted at consumers based in the UK.
DACO Associates Limited is Authorised and Regulated by the Financial Conduct Authority and is entered on the Financial Services Register (www.fca.org.uk/register) under reference 586519.
Masons Independent Financial Advisers & Mortgage Port are trading styles of DACO Associates Limited.
Registered Office: 2 Woodside Mews, Clayton Wood Close, Leeds, West Yorkshire, LS16 6QE. ---- Registered in England & Wales No 08072341.