UK tax rates 2023/24

A number of new tax rates, allowances and thresholds have been introduced for the 2023/24 tax year. We have created a 2023/24 tax guide which provides a detailed synopsis of each.
UK tax rates 2023 - 2024 banner

Key 2023/24 tax rates and allowances you should be aware of

  • Annual Allowance - The amount you can pay into your pension tax free has increased from £40,000 to £60,000.
  • Lifetime Allowance (LTA) - The LTA charge, a penalty you had to pay if your pension exceeded the £1.073m cap set by the Government has now been removed with LTA set to be abolished from 2024/25. 
  • Income Tax - There will be a change in England, Northern Ireland and Wales to the additional rate threshold (45%) with a falling from £150,000 to £125,140.  In Scotland, the top rate threshold will fall to £125,140 with higher and top rate tax increasing by 1% to 42% and 47% respectively. 
  • R&D tax relief for SMEs - A higher R&D tax relief for ‘R&D intensive SMEs’ has been introduced.  This will enable loss-making SMEs to claim a payable credit of 14.5% for qualifying R&D expenditure. This will apply to SME companies whose qualifying R&D expenditure comprises at least 40% of total expenditure. 
  • Corporation Tax - The main rate of Corporation tax will rise from 19% to 25% for companies with profits over £250k.

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UK tax rates 2023/24 guide