Tax Rates

Tax Band 2023-24 2022-23
Personal Allowance Up to £12,570 (0%) Up to £12,570 (0%)
Basic rate £12,571 to £50,270 (20.0%) £12,571 to £37,700 (20.0%)
Higher rate £50,271 to £125,140 (40.0%) £37,701 to £150,000 (40.0%)
Additional rate Over £125,140 (45.0%) Over £150,000 (45.0%)

Personal Savings Allowance (PSA)

Taxpayer Status 2023-24 2022-23
Basic rate £1,000 £1,000
Higher rate £500 £500


Allowance 2023-24 2022-23
Dividend Allowance (DA) £2,000 £1,000
Personal Allowance (PA) *(A) £12,570 £12,570
Marriage Allowance *(B) £1,260 £1,260
Blind Person’s Allowance £2,870 £2,600
Rent a room relief *(C) £7,500 £7,500
Trading Income *(C) £1,000 £1,000
Property Income *(C) £1,000 £1,000

*(A) The Personal Allowance goes down by £1 for every £2 of income above the £100,000 limit. It can go down to zero.

*(B) The part of the PA that is transferable to a spouse or civil partner who is not a higher or additional rate taxpayer.

*(C) If gross income exceeds this, the limit may be deducted instead of actual expenses.

BRB and additional rate threshold are increased by personal pension contributions (up to permitted limit) and Gift Aid donations.

General income (salary, pensions, business profits, rent) usually uses personal allowance, basic rate, and higher rate bands before savings income (mainly interest). To the extent that savings income falls in the first £5,000 of the basic rate band, it is taxed at nil rather than 20%. The PSA taxes interest at nil, where it would otherwise be taxable at 20% or 40%. Dividends are normally taxed as the ‘top slice’ of income. The DA taxes the first £2,000 of dividend income at nil, rather than the rate that would otherwise apply.

Shah Accountants is your dedicated partner for personalized financial solutions. Our expert team offers precise accounting and tax services, tailored to suit your individual or business needs. With us, expect dependable guidance and a commitment to your financial prosperity. Welcome to Shah Accountants, where your success is our priority.
Working Hours: Monday to Friday, 09am-5pm
Copyright © 2024. All Rights Reserved