Tax rates and allowances for 2023/24
1 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 If non-savings taxable income exceeds the starting rate limit, the starting savings rate will not apply to savings income.
3 From 01 April 2023, the main rate of corporation tax will increase to 25% for profits in excess of £250,000. From the same date, a ‘small profits rate’ of 19% will apply to profits up to £50,000. For businesses with profits between £50,000 and £250,000, tax will be charged at the main rate, subject to marginal relief provisions which will provide a gradual increase in the effective corporation tax rate. The bank corporation tax surcharge will reduce from 8% to 3% from the same date, so that the overall corporation tax rate payable by banks will be 28%.
4 Stamp duty land tax is charged at a rate of 3% above the current stamp duty land tax residential rates from 01 April 2016 on purchases by individuals of additional residential properties (such as second homes and buy-to-let properties), and by non-natural persons (companies, partnerships including companies or collective investment schemes) of a residential property, even if they do not own another residential property.
5 For purchases by first-time buyers of property worth £625,000 or less from 23 September 2022, the stamp duty land tax rate for a property valued £0 – 425,000 is 0% and for a property valued £425,001 – 625,000 is 0% on the consideration up to £425,000 and 5% on the remainder.
6 The 15% rate applies to certain acquisitions of residential property by “non-natural persons” (a company, a partnership including a company or a collective investment scheme).
7 A 2% surcharge applies from 01 April 2021 on non-UK residents purchasing residential property in England and Northern Ireland (when combined with the additional 3% rate (see note 5 above), a 5% surcharge applies on non-UK residents purchasing additional residential properties).
8 The nil rate band for residential property increased from £125,000 to £250,000 from 23 September 2022.
This document (and any information accessed through links in this document) is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from any action as a result of the contents of this document.
Key contacts
If you have any questions, contact a member of the HM revenue & customs tax rates and allowances for 2023/24 team for assistance:
