Income tax

The personal allowance for 2024/25 to 2027/28 will remain at £12,570 and the higher rate threshold will stay at £50,270, as previously announced.

In Scotland, for 2024/25, the starter and basic rate bands will grow by 6.7%, while the upper limit of the intermediate rate band will be frozen, narrowing the width of the band.

A new advanced rate of 45% will be introduced in Scotland on taxable income between £62,430 and £125,140, after which the top rate will apply at a rate of 48% (compared with the current 47%). These changes were announced in last December’s Scottish Budget statement.

Savings rate band

The 0% band for the starting rate for savings income for 2024/25 will remain at its current level of £5,000.


Don’t lose your personal allowance. Your personal allowance of £12,570 is reduced by £1 for every £2 of income between £100,000 and £125,140. You may be able to make a pension contribution or a charitable gift to bring your income below £100,000.

Dividend tax

The dividend allowance will reduce to £500 for 2024/25, as announced in November 2022. The rates of tax on dividends above the dividend allowance will remain unchanged.

High income child benefit charge (HICBC)

The HICBC threshold will increase to £60,000 from April 2024. The rate at which HICBC is charged will also be halved, so that child benefit is not fully withdrawn until individuals have income of at least £80,000 (against £60,000 currently).

HICBC will be administered on a household rather than an individual basis by April 2026. Consultation on the reform will begin in due course.

Targeting support to households

The government will consult shortly on options to enable better targeting of economic support to households. The aim will be to improve the fairness of policies (such as HICBC) by moving to a system based on household income and to achieve better targeting of economic support, including in times of crisis.

Furnished holiday lettings (FHL)

The FHL tax regime will be abolished with effect from 6 April 2025.

National insurance contributions (NICs)

The upper earnings limit, upper secondary thresholds and upper profits limit will remain aligned to the unchanged higher rate threshold at £50,270 for 2024/25 to 2027/28, as previously announced. The class 1 primary threshold (PT) of £12,570 and secondary threshold of £9,100 will remain frozen until April 2028.

Similarly, the upper earnings limit (UEL) and class 4 upper profits limit (UPL) will remain aligned to the higher rate threshold at £50,270 through to April 2028. The lower earnings limit (£6,396) and the small profits threshold (SPT – £6,725) will also be unchanged in 2024/25.

The class 1 primary (employee) contribution rate on earnings between the PT and UEL will be cut by two percentage points to 8% from 6 April 2024. The 2% rate will be unchanged on earnings above the UEL. The class 4 (self-employed) contribution rate on earnings between the lower profits limit (LPL) and UPL will be also reduced by two percentage points to 6%. The 2% rate will not change on earnings above the UPL.

Class 2 contributions will no longer be required from the self-employed, as announced in the Autumn Statement 2023. However, those with profits below the SPT who wish to retain access to contributory benefits (e.g. state pension) have the option to make voluntary contributions at a rate of £3.45 a week.

The voluntary class 3 rate will be unchanged at £17.45 a week for 2024/25.

Company car tax

The company car tax rates for 2024/25 will remain unchanged from 2023/24. As announced in the Autumn Statement 2022, the rates for electric and ultra-low emission cars will increase by one percentage point in each of 2025/26, 2026/27 and 2027/28. These will be subject to a maximum appropriate percentage of 5% for electric cars and 21% for ultra-low emission cars.

The rates for all other bands of vehicles will be increased by one percentage point for 2025/26 up to a maximum appropriate percentage of 37%; they will then be fixed for 2026/27 and 2027/28.

Abolition of non-domicile status

The remittance basis of taxation for non-UK domiciled individuals will be replaced from 6 April 2025 with a residence-based regime. Individuals who opt into the new regime will not pay UK tax on any foreign income and gains arising in their first four years of tax residence, provided they have been non-tax resident for the previous ten years.

Transitional arrangements will be introduced for existing non-domiciled individuals claiming the remittance basis that will provide an option to rebase the value of capital assets to 5 April 2019. There will be a temporary 50% exemption for the taxation of foreign income for 2025/26. A two year ‘temporary repatriation facility’ will be available for individuals to bring their previously accrued foreign income and gains into the UK at a 12% rate of tax.

Overseas workday relief (OWR) will also be reformed. Eligible employees will be able to claim OWR for their first three years of tax residence, benefitting from income tax relief on earnings for employment duties carried out overseas but with current restrictions on remitting these earnings removed.

The government will consult on plans to move to a residence-based regime for inheritance tax (IHT), including consulting on a ten-year exemption period for new arrivals and a ten-year ‘tail-provision’ for those who leave the UK and become non-resident. No changes to IHT will take effect before 6 April 2025.

Transfer of assets abroad

Legislation in the Finance Bill 2024 will ensure that individuals cannot use a company to bypass anti-avoidance legislation, known as the ‘transfer of assets abroad’ provisions, to avoid UK income tax. The changes will take effect for income arising to a person abroad from 6 April 2024.

Check out the personal taxation tables