Tax Rates 2023/24
The new tax year runs from 6th April 2023 to 5th April 2024. As each tax year comes around, new tax rates and allowances are put in place. This may mean you will be able to save on your income.
Below we have put together a summary of the new 2023/24 tax rates so you have a better understanding of what you may owe when it is time to sort out your taxes.
Income Tax Rates 2023/24
You will have to pay income tax on your earnings. The rate at which you will be taxed depends on which tax band your income falls in. Below shows these tax brackets and how much (as a percentage) you will owe on your income. To note: the additional tax rate threshold has moved from £150,000 to £125,140, which means anyone previously in the higher tax bracket, will now come under the additional rate.
Personal Allowance Tax Rate: £0 – £12,570
Tax percentage: 0%
Basic Tax Rate: £12,571 – £37,700
Tax percentage: 20%
Higher Tax Rate: £37,701 – £125,140
Tax percentage: 40%
Additional Tax Rate: Above £125,140
Tax percentage: 45%
Income Tax Rates 2023/24 (Scotland)
Income tax rates are slightly different in Scotland, below is a break down of how their tax thresholds are set out:
Starter Tax Rate: Up to £14,732
Tax percentage: 19%
Basic Tax Rate: £14,733 – £25,688
Tax percentage: 20%
Intermediate Rate: £25,689 – £43,662
Tax percentage: 21%
Higher Tax Rate: £43,663 to £125,140
Tax percentage: 42%
Additional Tax Rate:
Above £125,140
Tax percentage: 47%
Dividends Tax Rates 2023/24
Dividends carry the same tax thresholds as income, but are taxed at a different rate. For example, if you get paid £125,141 in dividends, you will be taxed 39.35%, whereas if you were paid the same amount as regular income you’d be taxed at a rate of 45%.
The dividend allowance for the 2023/24 tax year is £1,000, which is half of what it was in 2022/23. It is set to be reduced again in 2024/25 to just £500. Anything above the £1,000 this year will be taxed at the rates stated below.
Basic Tax Rate: £12,571 – £50,270
Tax percentage: 8.75%
Higher Tax Rate: £50,271 – £125,140
Tax percentage: 33.75%
Additional Tax Rate: Over £125,140
Tax percentage: 39.35%
Capital Gains Tax Rates 2023/24
The capital gains tax allowance for 2023/24 is now £6,000, anything above this will be subject to the below tax rates. It has been reduced from 12,300 in the 2022/23 tax year.
Basic Tax Rate: £6,001 – £50,270
Tax percentage: 10%
Higher Tax Rate:
£50,271 – £125,140
Tax percentage: 20%
Capital Gains Additional Property Rates
If you were to make money from selling a property, other than your main property, you will be subject to the tax rates below:
Basic Tax Rate: £6,001 – £50,270
Tax percentage: 18%
Higher Tax Rate:
£50,271 – £125,140
Tax percentage: 28%
