Tax Rates & Allowances
2024/25
We have summarised the key rates and allowances which are fundamental to our business and personal lives. We are sure that you will find them a useful point of reference and have set out below a few examples of how they can be used.
Personal tax rates
As the UK tax system becomes more devolved, it is important to keep abreast of the changes taking place in the Scottish and Welsh income tax rates and bands. We have summarised the relevant information together with the rates and allowances which apply to investment income.
Buying property
If you buy property then property taxes payable are different depending where the property is in the United Kingdom. Stamp Duty Land Tax is payable on property in England and Northern Ireland, whilst Land and Buildings Transaction Tax is payable on property in Scotland and Land Transaction Tax on property in Wales. Our tax rates highlight the main rates so that you can consider the potential cost of buying property.
Business or asset sale
If you sell an asset such as shares or your business, capital gains tax may be due. Our tax rates highlight the main rates and reliefs so that you can consider the tax bill that may arise.
Rates for businesses
If you run a business, obtaining the right allowances on equipment that your business buys can affect the tax that your business has to pay each year. We have summarised the main allowances that are available.
Rates for employees
Our guide explains how these are computed to help ensure that you are paying the correct amount of tax.
Rates that affect us all
Long term planning for a comfortable retirement can never start too early. Our tax rates explain how much can be contributed to an approved pension scheme each year tax efficiently.
Our tax rates contain the main inheritance tax rates and exemptions but early planning can mitigate these tremendously.
These rates are intended for use as a quick point of reference. Should you require any further information, have a simple question or require detailed advice we are only a phone call away.
- Plant and machinery
- The cost of purchasing capital equipment in a business is not a revenue tax deductible expense. However, tax relief is available on certain capital expenditure in the form of capital allowances.
- Plant and machinery allowances may be available on items such as machines, equipment, furniture, certain fixtures in a building (‘integral features‘), computers, cars, vans and similar equipment used in a business.
- There are special rules for cars and certain ‘environmentally friendly’ equipment.
- Plant and machinery allowances may be available to owners of commercial property which is let out to a business.
- The Annual Investment Allowance (AIA) gives a 100% write-off on most types of plant and machinery (but not cars) up to an annual limit.
- Writing down allowances (WDA) are given for expenditure for which AIA is not, or cannot be, claimed.
- A Structures and Buildings Allowance of 3% may be available for qualifying investments to construct new, or renovate old, non-residential structures and buildings.
AIA
- Special rules apply to accounting periods straddling the dates shown in the tables below.
- The AIA may need to be shared between certain businesses under common ownership.
AIA limits – companies
Annual limit |
---|
£ |
1,000,000 |
AIA limits – sole traders and partnerships
Annual limit |
---|
£ |
1,000,000 |
Other plant and machinery allowances
- Expenditure upon which AIA is not given/claimed will obtain relief through the ‘main rate pool‘ or the ‘special rate pool‘ rather than each item being dealt with separately.
- The annual rate of WDA is 18% in the ‘main rate pool‘ and 6% in the ‘special rate pool‘.
- A 100% first year allowance (FYA) may be available on certain energy efficient plant and cars.
Other allowances
First Year Allowance (FYA) on certain plant, machinery and cars of 0g/km (for cars purchased before 1 April 2025) | 100% |
Corporation tax FYA (‘full expensing’) on certain new, unused plant and machinery from 1 April 2023 | 100% |
Corporation tax FYA on new, unused long-life assets, integral features of buildings, etc. from 1 April 2023 | 50% |
Cars
- For expenditure incurred on cars, costs are generally allocated to one of the two plant and machinery pools.
- AIA is not available on any car but a 100% first year allowance may be available on certain cars. To qualify for first year allowance, the car must be purchased new.
Cars acquired from April 2021
Emissions (g/km) |
Pool |
Allowance |
---|---|---|
0 | Main rate | 100% FYA |
≤ 50 | Main rate | 18% WDA |
>50 | Special rate | 6% WDA |
-
- The cost of purchasing capital equipment in a business is not a revenue tax deductible expense. However, tax relief is available on certain capital expenditure in the form of capital allowances.
- Plant and machinery allowances may be available on items such as machines, equipment, furniture, certain fixtures in a building (‘ integral features ‘), computers, cars, vans and similar equipment used in a business.
- There are special rules for cars and certain ‘environmentally friendly’ equipment.
- Plant and machinery allowances may be available to owners of commercial property which is let out to a business.
- The Annual Investment Allowance (AIA) gives a 100% write-off on most types of plant and machinery (but not cars) up to an annual limit.
- Writing down allowances (WDA) are given for expenditure for which AIA is not, or cannot be, claimed.
- A Structures and Buildings Allowance of 3% may be available for qualifying investments to construct new, or renovate old, non-residential structures and buildings.
AIA
- Special rules apply to accounting periods straddling the dates shown in the tables below.
- The AIA may need to be shared between certain businesses under common ownership.
AIA limits – companies
Annual limit
£ 1,000,000 AIA limits – sole traders and partnerships
Annual limit
£ 1,000,000 Other plant and machinery allowances
- Expenditure upon which AIA is not given/claimed will obtain relief through the ‘ main rate pool ‘ or the ‘ special rate pool ‘ rather than each item being dealt with separately.
- The annual rate of WDA is 18% in the ‘ main rate pool ‘ and 6% in the ‘ special rate pool ‘.
- A 100% first year allowance (FYA) may be available on certain energy efficient plant and cars.
Other allowances
Corporation tax super-deduction on certain plant and machinery until 31 March 2023 130% First Year Allowance (FYA) on certain plant, machinery and cars of 0 g/km 100% Corporation tax FYA on long-life assets, integral features of buildings, etc. until 31 March 2023 50% Corporation tax FYA (‘full expensing’) on certain new, unused plant and machinery from 1 April 2023 100% Corporation tax FYA on new, unused long-life assets, integral features of buildings, etc. from 1 April 2023 50% Cars
- For expenditure incurred on cars, costs are generally allocated to one of the two plant and machinery pools.
- AIA is not available on any car but a 100% first year allowance may be available on certain cars. To qualify for first year allowance, the car must be purchased new.
Cars acquired from April 2021
Emissions (g/km)
Pool
Allowance
0 Main rate 100% FYA ≤ 50 Main rate 18% WDA >50 Special rate 6% WDA
- CGT is payable by individuals, trustees and personal representatives (PRs). Companies pay corporation tax on their capital gains.
- There are annual tax-free allowances (the ‘annual exempt amount’) for individuals, trustees and PRs. Companies do not have an annual exempt amount.
- For individuals, net gains are added to total taxable income to determine the appropriate rate of tax. The standard rate applies only to the net gains which, when added to total taxable income, do not exceed the basic rate band.
- Gains which qualify for Investors’ Relief are charged at 10% for the first £10m of qualifying gains.
- Gains which qualify for Business Asset Disposal Relief are charged at 10% for the first £1 million.
Rates and annual exemption
Individuals | 2024/25 |
---|---|
£ | |
Exemption | 3,000 |
Standard rate | 10% |
Higher rate | 20% |
The higher rate applies to higher rate and additional rate taxpayers.
Additionally, higher rates of 18% and 24% may apply to the disposal of certain residential property.
Trusts | 2024/25 |
---|---|
£ | |
Exemption | 1,500 |
Rate | 20% |
-
- CGT is payable by individuals, trustees and personal representatives (PRs) . Companies pay corporation tax on their capital gains.
- There are annual tax-free allowances (the ‘annual exempt amount’) for individuals, trustees and PRs. Companies do not have an annual exempt amount.
- For individuals, net gains are added to total taxable income to determine the appropriate rate of tax. The standard rate applies only to the net gains which, when added to total taxable income, do not exceed the basic rate band .
- Gains which qualify for Investors’ Relief are charged at 10% for the first £10m of qualifying gains.
- Gains which qualify for Business Asset Disposal Relief are charged at 10% for the first £1 million.
Rates and annual exemption
Individuals 2023/24 £ Exemption 6,000 Standard rate 10% Higher rate 20% The higher rate applies to higher rate and additional rate taxpayers.
Additionally, higher rates of 18% and 28% may apply to the disposal of certain residential property.
Trusts 2023/24 £ Exemption 3,000 Rate 20%
- The car benefit is calculated by multiplying the car’s list price, when new, by a percentage linked to the car’s CO2 emissions.
- For diesel cars generally add a 4% supplement (unless the car is registered on or after 1 September 2017 and meets the Euro 6d emissions standard).
- The overall maximum percentage is capped at 37%.
- The list price includes accessories.
- The list price is reduced for capital contributions made by the employee up to £5,000.
- Special rules may apply to cars provided for disabled employees.
2024/25 |
||
CO2 emissions g/km | % of list price taxed | |
0 | 2 | |
1 – 50 | ||
Electric range | 130 or more | 2 |
70 – 129 | 5 | |
40 – 69 | 8 | |
30 – 39 | 12 | |
under 30 | 14 | |
51 – 54 | 15 | |
55-59 | 16 | |
60-64 | 17 | |
65-69 | 18 | |
70-74 | 19 | |
75-79 | 20 | |
80-84 | 21 | |
85-89 | 22 | |
90-94 | 23 | |
95-99 | 24 | |
100-104 | 25 | |
105-109 | 26 | |
110-114 | 27 | |
115-119 | 28 | |
120-124 | 29 | |
125-129 | 30 | |
130-134 | 31 | |
135-139 | 32 | |
140-144 | 33 | |
145-149 | 34 | |
150-154 | 35 | |
155-159 | 36 | |
160 and above | 37 |
-
- The car benefit is calculated by multiplying the car’s list price, when new, by a percentage linked to the car’s CO 2 emissions.
- For diesel cars generally add a 4% supplement (unless the car is registered on or after 1 September 2017 and meets the Euro 6d emissions standard).
- The overall maximum percentage is capped at 37%.
- The list price includes accessories.
- The list price is reduced for capital contributions made by the employee up to £5,000.
- Special rules may apply to cars provided for disabled employees.
2023/24
CO2 emissions g/km % of list price taxed 0 2 1 – 50 Electric range 130 or more 2 70 – 129 5 40 – 69 8 30 – 39 12 under 30 14 51 – 54 15 55-59 16 60-64 17 65-69 18 70-74 19 75-79 20 80-84 21 85-89 22 90-94 23 95-99 24 100-104 25 105-109 26 110-114 27 115-119 28 120-124 29 125-129 30 130-134 31 135-139 32 140-144 33 145-149 34 150-154 35 155-159 36 160 and above 37
- Car fuel benefit applies if an employee has the benefit of private fuel for a company car.
- The benefit is calculated by applying the percentage used to calculate the car benefit by a ‘fuel charge multiplier’.
- The charge is proportionately reduced if provision of private fuel ceases part way through the year. The fuel benefit is reduced to nil only if the employee pays for all private fuel.
Car fuel benefit 2024/25 | |
---|---|
Fuel charge multiplier | £27,800 |
-
- Car fuel benefit applies if an employee has the benefit of private fuel for a company car.
- The benefit is calculated by applying the percentage used to calculate the car benefit by a ‘fuel charge multiplier’.
- The charge is proportionately reduced if provision of private fuel ceases part way through the year. The fuel benefit is reduced to nil only if the employee pays for all private fuel.
Car fuel benefit 2023/24 Fuel charge multiplier £27,800
- Advisory fuel rates for company cars
- Advisory rates only apply where employers reimburse employees for business travel in a company car or require employees to repay the cost of fuel used for private travel in a company car.
- If the rate paid per mile of business travel is no higher than the advisory rate for the particular engine size and fuel type of the car, HMRC will accept that there is no taxable profit and no Class 1 NIC liability.
The advisory fuel rates for journeys undertaken on or after 1 March 2024 are:
Engine size | Petrol |
---|---|
1400cc or less | 13p |
1401cc – 2000cc | 15p |
Over 2000cc | 24p |
Engine size | Diesel |
---|---|
1600cc or less | 12p |
1601cc – 2000cc | 14p |
Over 2000cc | 19p |
Engine size | LPG |
---|---|
1400cc or less | 11p |
1401cc – 2000cc | 13p |
Over 2000cc | 21p |
Hybrid cars are treated as either petrol or diesel cars for this purpose.
The Advisory Electricity Rate for fully electric cars is 9p per mile. Electricity is not a fuel for car fuel benefit purposes.
Rates – 2024/25 | £ per week |
---|---|
Eldest/Only Child | £25.60 |
Other Children | £16.95 |
Rates – 2023/24 | £ per week |
---|---|
Eldest/Only Child | £24.00 |
Other Children | £15.90 |
- Corporation tax rates are set for each Financial Year. A Financial Year runs from 1 April to the following 31 March.
- If the accounting period of a company straddles the 31 March, the profits are apportioned on a time basis to each Financial Year.
- The Northern Ireland Executive has committed to setting the rate of corporation tax at 12.5% when the Northern Ireland Executive demonstrates its finances are on a sustainable footing.
Year to 31.3.25 | Profits band £ | Rate % |
Small profits rate | 0 – 50,000 | 19% |
Marginal rate | 50,001 – 250,000 | 26.5% |
Main rate | Over 250,000 | 25% |
Marginal relief fraction | 3/200 |
- Corporation tax rates are set for each Financial Year. A Financial Year runs from 1 April to the following 31 March.
- If the accounting period of a company straddles the 31 March, the profits are apportioned on a time basis to each Financial Year.
- The Northern Ireland Executive has committed to setting the rate of corporation
- Corporation tax rates are set for each Financial Year. A Financial Year runs from 1 April to the following 31 March.
- If the accounting period of a company straddles the 31 March, the profits are apportioned on a time basis to each Financial Year.
- The Northern Ireland Executive has committed to setting the rate of corporation tax at 12.5% when the Northern Ireland Executive demonstrates its finances are on a sustainable footing.
Year to 31.3.24 Profits band £ Rate % Small profits rate 0 – 50,000 19% Marginal rate 50,001 – 250,000 26.5% Main rate Over 250,000 25% Marginal relief fraction 3/200 For the year to 31.3.23 the main rate of corporation tax was 19%. Special rules apply to accounting periods straddling 1 April 2023. For the year to 31.3.24 the profits limits are reduced for a company with associated companies. Different rates apply for ring-fenced (broadly oil industry) profit.
Statutory pay
- Payments may be required from an employer if an employee is not at work for a variety of reasons.
- There are detailed conditions for an employee to qualify for any of these statutory payments.
- Employees are only eligible for a statutory payment if they have sufficient average weekly earnings of at least the lower earnings limit.
Statutory Sick Pay
- Payments may be required from an employer if an employee is too ill to work.
- SSP is generally payable for a period up to 28 weeks.
Statutory Maternity Pay
- Payments may be required from an employer when an employee takes time off to have a baby.
- SMP is payable for a period up to 39 weeks.
Statutory Paternity Pay
- Payments may be required from an employer when an employee takes time off during their partner’s Statutory Maternity Pay period.
- Payment is for a period of either one or two complete weeks.
Shared Parental Pay
- Payments may be required from an employer when an employee takes time off following the curtailment of the period of SMP by the mother.
- Payment is for up to a maximum of 37 weeks and is dependent on the mother’s unused SMP period.
Statutory Adoption Pay
- Payments may be required from an employer when an employee takes time off when they adopt a child.
- Payment is for a period up to 39 weeks.
Statutory Parental Bereavement Pay
- Payments may be required from an employer when parents take time off following the death of a child or a stillbirth.
- Payment is for up to a maximum of two weeks.
2024/25 Statutory pay rates – average weekly earnings £123 or over |
|
---|---|
Statutory Sick Pay | £116.75 |
Statutory Maternity Pay | |
First six weeks | 90% of weekly earnings |
Next 33 weeks | £184.03 |
Statutory Paternity Pay – two weeks | £184.03 |
Statutory Adoption Pay – 39 weeks | |
First six weeks | 90% of weekly earnings |
Next 33 weeks | £184.03 |
Shared Parental Pay | £184.03 |
Statutory Parental Bereavement Pay – two weeks | £184.03 |
With the exception of Statutory Sick Pay, statutory payments may be payable at 90% average weekly earnings throughout the payment period in certain circumstances. This applies where 90% weekly earnings are less than the standard rate of £184.03.
Statutory pay
- Payments may be required from an employer if an employee is not at work for a variety of reasons.
- There are detailed conditions for an employee to qualify for any of these statutory payments.
- Employees are only eligible for a statutory payment if they have sufficient average weekly earnings of at least the lower earnings limit.
Statutory Sick Pay
- Payments may be required from an employer if an employee is too ill to work.
- SSP is generally payable for a period up to 28 weeks.
Statutory Maternity Pay
- Payments may be required from an employer when an employee takes time off to have a baby.
- SMP is payable for a period up to 39 weeks.
Statutory Paternity Pay
- Payments may be required from an employer when an employee takes time off during their partner’s Statutory Maternity Pay period.
- Payment is for a period of either one or two complete weeks.
Shared Parental Pay
- Payments may be required from an employer when an employee takes time off following the curtailment of the period of SMP by the mother.
- Payment is for up to a maximum of 37 weeks and is dependent on the mother’s unused SMP period.
Statutory Adoption Pay
- Payments may be required from an employer when an employee takes time off when they adopt a child.
- Payment is for a period up to 39 weeks.
Statutory Parental Bereavement Pay
- Payments may be required from an employer when parents take time off following the death of a child or a stillbirth.
- Payment is for up to a maximum of two weeks.
2023/24 Statutory pay rates – average weekly earnings £120 or over |
|
---|---|
Statutory Sick Pay | £109.40 |
Statutory Maternity Pay | |
First six weeks | 90% of weekly earnings |
Next 33 weeks | £172.48 |
Statutory Paternity Pay – two weeks | £172.48 |
Statutory Adoption Pay – 39 weeks | |
First six weeks | 90% of weekly earnings |
Next 33 weeks | £172.48 |
Shared Parental Pay | £172.48 |
Statutory Parental Bereavement Pay – two weeks | £172.48 |
With the exception of Statutory Sick Pay, statutory payments may be payable at 90% average weekly earnings throughout the payment period in certain circumstances. This applies where 90% weekly earnings are less than the standard rate of £172.48.
Income tax personal allowances | £ |
Personal Allowance | 12,570 |
Marriage Allowance | 1,260 |
Blind person’s allowance | 3,070 |
Married couple’s allowance
Either partner born before 6 April 1935 |
|
– Maximum reduction in tax bill | 1108 |
– Minimum reduction in tax bill | 428 |
Married couple’s allowance income limit
Reduce married couple’s allowance by £1 for every £2 of ‘adjusted net income’ above this limit |
37,000 |
Income tax personal allowances | £ |
Personal Allowance | 12,570 |
Marriage Allowance | 1,260 |
Blind person’s allowance | 2,870 |
Married couple’s allowance
Either partner born before 6 April 1935 |
|
– Maximum reduction in tax bill | 1037.50 |
– Minimum reduction in tax bill | 401 |
Married couple’s allowance income limit
Reduce married couple’s allowance by £1 for every £2 of ‘adjusted net income’ above this limit |
34,600 |
- Across the UK
- Income tax applies to the amount of income after deduction of personal allowances.
- Income is taxed in a specific order with savings and dividend income taxed last.
- Dividend income and savings income falling within the dividend and savings allowances still form part of total income of an individual.
- The starting rate band is only applicable to savings income. The 0% rate is not available if the taxable amount of non-savings income exceeds the starting rate band.
- The Scottish Parliament set the rates of income tax and the limits at which these rates apply for Scottish residents on non-savings and non-dividend income.
- Income tax is devolved to Wales on non-savings and non-dividend income.
Income tax rates
Band of taxable income | Rate | Rate if dividends | |
---|---|---|---|
£ | % | % | |
0 – 37,700 | Basic rate | 20 | 8.75 |
37,701 – 125,140 | Higher rate | 40 | 33.75 |
Over 125,140 | Additional rate | 45 | 39.35 |
Special rates for savings and dividend income falling into above bands of taxable income | |||
Savings Allowance | |||
Basic rate taxpayers | 1,000 | 0 | |
Higher rate taxpayers | 500 | 0 | |
Additional rate taxpayers | Nil | N/A | |
Dividend Allowance | |||
for all taxpayers | 500 | 0 |
-
- Income tax applies to the amount of income after deduction of personal allowances.
- Income is taxed in a specific order with savings and dividend income taxed last.
- Dividend income and savings income falling within the dividend and savings allowances still form part of total income of an individual.
- The starting rate band is only applicable to savings income. The 0% rate is not available if the taxable amount of non-savings income exceeds the starting rate band.
- The Scottish Parliament set the rates of income tax and the limits at which these rates apply for Scottish residents on non-savings and non-dividend income.
- Income tax is devolved to Wales on non-savings and non-dividend income.
Income tax rates
Band of taxable income Rate Rate if dividends £ % % 0 – 37,700 Basic rate 20 8.75 37,701 – 125,140 Higher rate 40 33.75 Over 125,140 Additional rate 45 39.35 Special rates for savings and dividend income falling into above bands of taxable income Savings Allowance Basic rate taxpayers 1,000 0 Higher rate taxpayers 500 0 Additional rate taxpayers Nil N/A Dividend Allowance for all taxpayers 1,000 0
- Scotland
- Scottish resident taxpayers are liable on non-savings and non-dividend income as set out below.
- Savings income and dividend income are taxed using UK tax rates and bands.
Band of taxable income | Rate | |
---|---|---|
£ | % | |
0 – 2,306 | Starter rate | 19 |
2,307 – 13,991 | Basic rate | 20 |
13,992 – 31,092 | Intermediate rate | 21 |
31,093 – 62,430 | Higher rate | 42 |
62,431 – 125,140 | Advanced rate | 45 |
Over 125,140 | Top rate | 48 |
-
- Scottish resident taxpayers are liable on non-savings and non-dividend income as set out below.
- Savings income and dividend income are taxed using UK tax rates and bands.
Band of taxable income Rate £ % 0 – 2,162 Starter rate 19 2,163 – 13,118 Basic rate 20 13,119 – 31,092 Intermediate rate 21 31,093 – 125,140 Higher rate 42 Over 125,140 Top rate 47
- Wales
- Income tax is devolved to Wales.
- Welsh resident taxpayers continue to pay the same overall income tax rates using the UK rates and bands.
- The total rate of income tax = UK income tax + Welsh rate of income tax
- Savings income and dividend income are taxed using UK tax rates and bands.
Band of taxable income | UK Rate | Welsh Rate | Total Rate | |
---|---|---|---|---|
£ | % | % | % | |
0 – 37,700 | Basic rate | 10 | 10 | 20 |
37,701 – 125,140 | Higher rate | 30 | 10 | 40 |
Over 125,140 | Additional rate | 35 | 10 | 45 |
- Income tax is devolved to Wales.
- Welsh resident taxpayers continue to pay the same overall income tax rates using the UK rates and bands.
- The total rate of income tax = UK income tax + Welsh rate of income tax
- Savings income and dividend income are taxed using UK tax rates and bands.
Band of taxable income | UK Rate | Welsh Rate | Total Rate | |
---|---|---|---|---|
£ | % | % | % | |
0 – 37,700 | Basic rate | 10 | 10 | 20 |
37,701 – 150,000 | Higher rate | 30 | 10 | 40 |
Over 150,000 | Additional rate | 35 | 10 | 45 |
ISA limits 2024/25 | |
---|---|
Overall annual investment limit | £20,000 |
Junior ISA annual investment limit | £9,000 |
Help to Buy ISA monthly subscription limit | £200 |
Lifetime ISA annual investment limit | £4,000 |
ISA limits 2023/24 | |
---|---|
Overall annual investment limit | £20,000 |
Junior ISA annual investment limit | £9,000 |
Help to Buy ISA monthly subscription limit | £200 |
Lifetime ISA annual investment limit | £4,000 |
- IHT may be payable when an individual’s estate is worth more than the IHT nil rate band when they die.
- Lifetime and death transfers between UK domiciled spouses are exempt from IHT.
- A further nil rate band of £175,000 may be available in relation to current or former residences.
- The IHT threshold available on death may be increased for surviving spouses as there may have been a nil rate band not used, or not fully used, on the first death.
- There are reliefs for some business and farming assets which reduce their value for IHT purposes.
- IHT may also be payable on gifts made in an individual’s lifetime but within seven years of death.
- Some lifetime gifts are exempt.
- Transfers of assets into trust made in an individual’s lifetime may be subject to an immediate charge but at lifetime rates.
- There are also charges on some trusts.
IHT rates and nil rate band 2024/25 and 2023/24
IHT nil rate | £325,000 |
Lifetime rate | 20% |
Death rate | 40% |
Death rate if sufficient charitable legacies made | 36% |
IHT reliefs for lifetime gifts
Annual exemption | £3,000 |
Small gifts | £250 |
Marriage/civil partnership | |
– parent | £5,000 |
– grandparent | £2,500 |
– other spouse/civil partner | £2,500 |
– other | £1,000 |
IHT – reduced charge on gifts within seven years of death
Years before death | % of death charge |
---|---|
0-3 | 100 |
3-4 | 80 |
4-5 | 60 |
5-6 | 40 |
6-7 | 20 |
LBTT (Residential property)
Consideration (£) | Rate |
---|---|
0 – 145,000 | 0% |
145,001 – 250,000 | 2% |
250,001 – 325,000 | 5% |
325,001 – 750,000 | 10% |
750,001 and above | 12% |
The rates apply to the portion of the total value which falls within each band.
Residential rates may be increased by 6% where further residential properties, costing over £40,000, are acquired.
First-time Buyer relief raises the zero rate tax threshold for first-time buyers from £145,000 to £175,000.
LBTT (Non-residential)
Consideration (£) | Rate |
---|---|
0 – 150,000 | 0% |
150,001 – 250,000 | 1% |
Over 250,000 | 5% |
The rates apply to the portion of the total value which falls within each band.
LBTT (Residential property)
Consideration (£) | Rate |
---|---|
0 – 145,000 | 0% |
145,001 – 250,000 | 2% |
250,001 – 325,000 | 5% |
325,001 – 750,000 | 10% |
750,001 and above | 12% |
The rates apply to the portion of the total value which falls within each band.
Residential rates may be increased by 4% where further residential properties, costing over £40,000, are acquired.
First-time Buyer relief raises the zero rate tax threshold for first-time buyers from £145,000 to £175,000.
LBTT (Non-residential)
Consideration (£) | Rate |
---|---|
0 – 150,000 | 0% |
150,001 – 250,000 | 1% |
Over 250,000 | 5% |
The rates apply to the portion of the total value which falls within each band.
LTT (Residential property)
Consideration (£) | Rate |
---|---|
0 – 225,000 | 0% |
225,001 – 400,000 | 6% |
400,001 – 750,000 | 7.5% |
750,001 – 1,500,000 | 10% |
Over 1,500,000 | 12% |
The rates apply to the portion of the total value which falls within each band.
Residential rates may be increased where further residential properties costing over £40,000 or over are acquired.
Higher residential tax rates
Higher residential rates may apply when you already own one or more residential properties.
Consideration (£) | Rate |
---|---|
0 – 180,000 | 4% |
180,001 – 250,000 | 7.5% |
250,001 – 400,000 | 9% |
400,001 – 750,000 | 11.5% |
750,001 – 1,500,000 | 14% |
Over 1,500,000 | 16% |
The rates apply to the portion of the total value which falls within each band.
LTT (Non-residential)
Consideration (£) | Rate |
---|---|
0 – 225,000 | 0% |
225,001 – 250,000 | 1% |
250,001 – 1,000,000 | 5% |
Over 1,000,000 | 6% |
The rates apply to the portion of the total value which falls within each band.
LTT (Residential property)
Consideration (£) | Rate |
---|---|
0 – 225,000 | 0% |
225,001 – 400,000 | 6% |
400,001 – 750,000 | 7.5% |
750,001 – 1,500,000 | 10% |
Over 1,500,000 | 12% |
The rates apply to the portion of the total value which falls within each band.
Residential rates may be increased where further residential properties costing over £40,000 or over are acquired.
Higher residential tax rates
Higher residential rates may apply when you already own one or more residential properties.
Consideration (£) | Rate |
---|---|
0 – 180,000 | 4% |
180,001 – 250,000 | 7.5% |
250,001 – 400,000 | 9% |
400,001 – 750,000 | 11.5% |
750,001 – 1,500,000 | 14% |
Over 1,500,000 | 16% |
The rates apply to the portion of the total value which falls within each band.
LTT (Non-residential)
Consideration (£) | Rate |
---|---|
0 – 225,000 | 0% |
225,001 – 250,000 | 1% |
250,001 – 1,000,000 | 5% |
Over 1,000,000 | 6% |
The rates apply to the portion of the total value which falls within each band.
- MAPs represent the maximum tax free mileage allowances an employee can receive from their employer for using their own vehicle for business journeys.
- An employer is allowed to pay an employee a certain amount of MAPs each year without having to report payments to HMRC.
- If the employee receives less than the statutory rate, tax relief can be claimed on the difference.
MAP rates per business mile 2024/25 and 2023/24
Cars and vans | Rate per mile |
Up to 10,000 miles | 45p |
Over 10,000 miles | 25p |
Bicycles | 20p |
Motorcycles | 24p |
- National Minimum Wage rates apply to employees up to the age of 20.
- National Living Wage (NLW) rates apply to employees 21 and over.
- The Apprentice rate applies to apprentices under 19, or 19 and over in the first year of apprenticeship.
- Penalties apply to employers who fail to pay minimum wages.
Age | NLW | 18-20 | 16-17 | Apprentice |
From 1 April 2024 | £11.44 | £8.60 | £6.40 | £6.40 |
- National Minimum Wage rates apply to employees up to the age of 22.
- National Living Wage (NLW) rates apply to employees 23 and over.
- The Apprentice rate applies to apprentices under 19, or 19 and over in the first year of apprenticeship.
- Penalties apply to employers who fail to pay minimum wages.
Age | NLW | 21-22 | 18-20 | 16-17 | Apprentice |
From 1 April 2023 | £10.42 | £10.18 | £7.49 | £5.28 | £5.28 |
- Rates and Allowances
- Employees start paying Class 1 NIC from age 16 (if sufficient earnings).
- Employers pay Class 1 NIC in accordance with the table below.
- Employer NIC for employees under the age of 21 and apprentices under the age of 25 is reduced from the normal rate to 0% up to the Upper Secondary Threshold of £967 per week. Also applies to veterans in the first 12 months of employment.
- Employees’ Class 1 NIC stop when they reach their State Pension age. The employer’s contribution continues.
Employees – Class 1 – 2024/25
Earnings per week | % |
---|---|
Up to £242* | Nil |
£242.01 – £967 | 8 |
Over £967 | 2 |
Entitlement to state pension and other contribution-based benefits is retained for earnings between £123 and £242 per week.
Employers – Class 1 – 2024/25
Earnings per week | % |
---|---|
Up to £175 | Nil |
Over £175 | 13.80 |
Other National Insurance payable by employers
Class 1A – 13.8% on broadly all taxable benefits provided to employees and on certain taxable termination payments in excess of £30,000
Class 1B – 13.8% on taxable PAYE Settlement Agreements
Self-employed – Class 2 and 4
- A self-employed person starts paying Class 2 and Class 4 NIC from 16 or over (if sufficient profits)
- Class 2 NIC stop when a person reaches State Pension age.
- From 6 April 2024, there is no longer a requirement to pay Class 2. Voluntary contributions can still be made.
- Class 4 NIC stop from the start of the tax year after the one in which the person reaches State Pension age.
Self-employed – Class 2 – 2024/25
Flat rate per week | £3.45 |
Small Profits Threshold | £6,725 per year |
Lower Profits Limit | n/a |
A self-employed person with profits below the Small Profits Threshold might decide to carry on paying Class 2 voluntarily to accrue entitlement to the State Pension and other benefits.
Class 4 – 2024/25
Annual profits | % |
---|---|
Up to £12,570 | Nil |
£12,570.01 – £50,270 | 6 |
Over £50,270 | 2 |
Class 3
- A person needs 35 years (30 years if State Pension age is before 6 April 2016) of NIC to get a full State Pension.
- Class 3 voluntary contributions can be paid to fill or avoid gaps in a NI record.
Class 3 – 2024/25
Flat rate per week £17.45
-
- Employees start paying Class 1 NIC from age 16 (if sufficient earnings).
- Employers pay Class 1 NIC in accordance with the table below.
- Employer NIC for employees under the age of 21 and apprentices under the age of 25 is reduced from the normal rate to 0% up to the Upper Secondary Threshold of £967 per week. Also applies to veterans in the first 12 months of employment.
- Employees’ Class 1 NIC stop when they reach their State Pension age . The employer’s contribution continues.
Employees – Class 1 – 2023/24
Earnings per week % Up to £242* Nil £242.01 – £967 12 up to 5 Jan 2024
10 from 6 Jan 2024Over £967 2 Entitlement to state pension and other contribution-based benefits is retained for earnings between £123 and £242 per week.
Employers – Class 1 – 2023/24
Earnings per week % Up to £175 Nil Over £175 13.80 Other National Insurance payable by employers
Class 1A – 13.8% on broadly all taxable benefits provided to employees and on certain taxable termination payments in excess of £30,000
Class 1B – 13.8% on taxable PAYE Settlement Agreements
Self-employed – Class 2 and 4
- A self-employed person starts paying Class 2 and Class 4 NIC from 16 or over (if sufficient profits)
- Class 2 NIC stop when a person reaches State Pension age
- Class 4 NIC stop from the start of the tax year after the one in which the person reaches State Pension age.
Self-employed – Class 2 – 2022/23
Flat rate per week £3.45 Small Profits Threshold £6,725 per year Lower Profits Limit £12,570 For 2023/24 the point at which the self-employed person starts to pay Class 2 NICs is £12,570. This means those with profits between the Small Profits Threshold and the Lower Profits Limit will not pay Class 2 NICs, but will still be able to access entitlement to contributory benefits. A self-employed person with profits below the Small Profits Threshold might decide to carry on paying Class 2 voluntarily to accrue entitlement to the State Pension and other benefits.
Class 4 – 2023/24
Annual profits % Up to £12,570 Nil £12,570.01 – £50,270 9 Over £50,270 2 Class 3
- A person needs 35 years (30 years if State Pension age is before 6 April 2016) of NIC to get a full State Pension.
- Class 3 voluntary contributions can be paid to fill or avoid gaps in a NI record.
Class 3 – 2023/24
Flat rate per week £17.45
Employer minimum contribution | Total minimum contribution |
---|---|
3% | 8% |
Where the employer does not make the total minimum contribution the employee is obliged to pay the balance.
2024/25 | |
---|---|
Automatic enrolment earnings trigger | £10,000 |
Qualifying earnings band – lower limit | £6,240 |
Qualifying earnings band – upper limit | £50,270 |
Employer minimum contribution | Total minimum contribution |
---|---|
3% | 8% |
Where the employer does not make the total minimum contribution the employee is obliged to pay the balance.
2023/24 | |
---|---|
Automatic enrolment earnings trigger | £10,000 |
Qualifying earnings band – lower limit | £6,240 |
Qualifying earnings band – upper limit | £50,270 |
- Tax Relief on Pension Contributions
- Tax relief available for personal contributions is the higher of £3,600 (gross) or 100% of relevant earnings.
- Any contributions in excess of £60,000, whether personal or by the employer, may be subject to income tax on the individual.
- The limit may be reduced to £10,000 once money purchase pensions are accessed.
- Where the £60,000 limit is not fully used it may be possible to carry the unused amount forward for three years.
- The annual allowance is tapered for those with adjusted income over £260,000. For every £2 of income over £260,000 an individual’s annual allowance will be reduced by £1, down to a minimum of £10,000.
- Employers will obtain tax relief on employer contributions if they are paid and made ‘wholly and exclusively’ for the purposes of the business. The tax relief for large contributions may be spread over several years.
-
- Tax relief available for personal contributions is the higher of £3,600 (gross) or 100% of relevant earnings.
- Any contributions in excess of £60,000, whether personal or by the employer, may be subject to income tax on the individual.
- The limit may be reduced to £10,000 once money purchase pensions are accessed.
- Where the £60,000 limit is not fully used it may be possible to carry the unused amount forward for three years.
- The annual allowance is tapered for those with adjusted income over £260,000. For every £2 of income over £260,000 an individual’s annual allowance will be reduced by £1, down to a minimum of £10,000.
- Employers will obtain tax relief on employer contributions if they are paid and made ‘wholly and exclusively’ for the purposes of the business. The tax relief for large contributions may be spread over several years.
- A property allowance is available to individuals.
- The property allowance will not apply to partnership income or to income on which rent a room relief is given.
Income up to £1,000 | Property income assessable NIL |
Income over £1,000 | Election to deduct £1,000 rather than the actual expenses |
- Key Dates
- SDLT is payable on land and property transactions in England and Northern Ireland.
- Property transactions in Scotland are subject to Land and Buildings Transaction Tax (LBTT).
- Property transactions in Wales are subject to Land Transaction Tax (LTT).
Residential property
The rates apply to the portion of the total value which falls within each band.
Consideration (£) | Rate |
0 – 250,000 | 0% |
250,001 – 925,000 | 5% |
925,001 – 1,500,000 | 10% |
1,500,001 and above | 12% |
These rates may be increased by 3% where further residential properties, costing over £40,000, are acquired.
First-time Buyer relief
First-time buyers may be eligible for first-time buyer relief on purchases of residential property up to £625,000. The rates apply to the portion of the total value which falls within each band.
Consideration (£) | Rate |
0 – 425,000 | 0% |
425,001 – 625,000 | 5% |
for purchases over 625,000 | normal rates apply |
Non-residential SDLT rates
Consideration (£) | Rate |
0 – 150,000 | 0% |
150,001 – 250,000 | 2% |
Over 250,000 | 5% |
Payable on consideration which falls in each band.
- The basic State Pension is a regular payment from the government that an individual may be entitled to when they reach State Pension age.
- The basic State Pension depends on the number of years an individual has paid National Insurance or has National Insurance credits, eg while unemployed or claiming certain benefits.
- To receive the basic State Pension an individual must have paid or been credited with National Insurance contributions (NIC).
- In 2016 the State Pension was reformed into a single-tier new State Pension. In order to benefit from the full amount the individual will need 35 years, rather than the previous 30 years of NIC or credits for the full amount, with pro-rating where 35 years is not achieved. You will usually need 10 qualifying years to get any State Pension. The amount an individual receives can be higher or lower depending on their National Insurance record. It will only be higher if you have over a certain amount of Additional State Pension.
- Currently an individual may also be entitled to the Additional State Pension. How much an individual gets depends on the number of qualifying years of NIC, the amount of earnings and whether the individual has been contracted out of the scheme.
Weekly State Pension 2024/25 | |
---|---|
Basic – single person | £169.50 |
New State Pension | £221.20 |
-
- The basic State Pension is a regular payment from the government that an individual may be entitled to when they reach State Pension age .
- The basic State Pension depends on the number of years an individual has paid National Insurance or has National Insurance credits, eg while unemployed or claiming certain benefits.
- To receive the basic State Pension an individual must have paid or been credited with National Insurance contributions (NIC).
- In 2016 the State Pension was reformed into a single-tier new State Pension. In order to benefit from the full amount the individual will need 35 years, rather than the previous 30 years of NIC or credits for the full amount, with pro-rating where 35 years is not achieved. You will usually need 10 qualifying years to get any State Pension. The amount an individual receives can be higher or lower depending on their National Insurance record. It will only be higher if you have over a certain amount of Additional State Pension.
- Currently an individual may also be entitled to the Additional State Pension. How much an individual gets depends on the number of qualifying years of NIC, the amount of earnings and whether the individual has been contracted out of the scheme.
Weekly State Pension 2023/24 Basic – single person £156.20 New State Pension £203.85
Enterprise Investment Scheme (EIS)
The Enterprise Investment Scheme (EIS) provides tax relief for individuals prepared to invest in new and growing companies. Investors can obtain generous income tax and capital gains tax (CGT) breaks for their investment and companies can use the relief to attract additional investment to develop their business. Individuals are entitled to relief on investments in certain unquoted trading companies through EIS. A junior version of EIS the SEIS is also available.
Maximum investment per annum | £1,000,000 |
Additional investment limit where investing in knowledge-intensive companies | £2,000,000 |
Income tax relief | 30% |
CGT treatment on disposal if held for 3 years | Exempt |
Capital gains from the disposal of other assets may be deferred by making an EIS investment.
Seed Enterprise Investment Scheme (SEIS)
The Seed Enterprise Investment Scheme (SEIS) provides tax relief for individuals prepared to invest in new and growing companies. Investors can obtain generous income tax and capital gains tax (CGT) breaks for their investment and companies can use the relief to attract additional investment to develop their business. SEIS is a junior version of EIS.
Maximum investment per annum | £200,000* |
Income tax relief | 50% |
CGT treatment on disposal if held for 3 years | Exempt |
An individual who makes a capital gain on another asset and uses the amount of the gain to make a SEIS investment will not pay tax on 50% of the gain (subject to certain conditions).
Capital gains from the disposal of other assets may be exempt up to £100,000* per annum by making an SEIS investment.
*Limits subject to Parliamentary approval.
Social Investment Relief (SIR)
Social Investment Relief (SIR) was designed to encourage private individuals to invest in social enterprises including charities.
SIR closed to any new investments from 6 April 2023.
Venture Capital Trusts (VCTs)
Venture Capital Trusts (VCTs) are designed to encourage private individuals to invest in smaller high-risk unquoted trading companies. VCTs operate by indirect investment through a mediated fund. In effect they are very like the investment trusts that are obtainable on the stock exchange, albeit in a high-risk environment. Individuals are entitled to relief on investments in VCTs.
Maximum investment per annum | £200,000 |
Income tax relief | 30% |
Dividend income | Exempt |
Capital gains treatment on disposal | Exempt |
- A Trade Allowance is available to individuals.
- There is an equivalent rule for certain miscellaneous income. This will apply to the extent that the £1,000 trading allowance is not used against trading income.
- The trade allowance is not available against partnership income.
Income up to £1,000 | Profits assessable NIL |
Income over £1,000 | Election to deduct £1,000 allowance rather than the actual expenses |
- Van benefit is chargeable if the van is available for an employee’s private use.
- A fuel benefit may also be chargeable if an employee has the benefit of private fuel paid for in respect of a company van.
- The charges do not apply to vans if a ‘restricted private use condition‘ is met throughout the year.
- A reduced benefit charge may apply to vans which cannot emit CO2 when driven.
Van benefits 2024/25 | |
---|---|
Van benefit | £3,960 |
Fuel benefit | £757 |
-
- Van benefit is chargeable if the van is available for an employee’s private use.
- A fuel benefit may also be chargeable if an employee has the benefit of private fuel paid for in respect of a company van.
- The charges do not apply to vans if a ‘ restricted private use condition ‘ is met throughout the year.
- A reduced benefit charge may apply to vans which cannot emit CO 2 when driven.
Van benefits 2023/24 Van benefit £3,960 Fuel benefit £757
- Registered businesses charge VAT on their sales. This is known as output VAT and the sales are referred to as outputs.
- Similarly VAT is charged on most goods and services purchased by the business. This is known as input VAT.
- There are three rates: standard which applies to most goods and services, reduced rate for some goods and services such as home energy and zero rate goods and services, for example, most food and children’s clothes.
- Some supplies are exempt from VAT for example postage stamps, financial and insurance transactions.
- A business is required to register for VAT if the value of taxable supplies exceeds the annual registration limit.
VAT – rates and limits | |
---|---|
Standard rate | 20% |
Reduced rate | 5% |
Annual Registration Limit – from 1.4.24 – 31.3.25 |
£90,000 |
Annual Deregistration Limit – from 1.4.24 – 31.3.25 |
£88,000 |
-
- Registered businesses charge VAT on their sales. This is known as output VAT and the sales are referred to as outputs.
- Similarly VAT is charged on most goods and services purchased by the business. This is known as input VAT.
- There are three rates: standard which applies to most goods and services, reduced rate for some goods and services such as home energy and zero rate goods and services, for example, most food and children’s clothes.
- Some supplies are exempt from VAT for example postage stamps, financial and insurance transactions.
- A business is required to register for VAT if the value of taxable supplies exceeds the annual registration limit.
VAT – rates and limits Standard rate 20% Reduced rate 5% Annual Registration Limit
– from 1.4.23 – 31.3.24£85,000 Annual Deregistration Limit
– from 1.4.23 – 31.3.24£83,000
CO2 band |
Gross monthly £ |
VAT £ |
Net £ |
120 or less | 61 | 10.17 | 50.83 |
125 | 91 | 15.17 | 75.83 |
130 | 97 | 16.17 | 80.83 |
135 | 103 | 17.17 | 85.83 |
140 | 110 | 18.33 | 91.67 |
145 | 115 | 19.17 | 95.83 |
150 | 122 | 20.33 | 101.67 |
155 | 128 | 21.33 | 106.67 |
160 | 134 | 22.33 | 111.67 |
165 | 140 | 23.33 | 116.67 |
170 | 146 | 24.33 | 121.67 |
175 | 152 | 25.33 | 126.67 |
180 | 159 | 26.50 | 132.50 |
185 | 164 | 27.33 | 136.67 |
190 | 171 | 28.50 | 142.50 |
195 | 178 | 29.67 | 148.33 |
200 | 183 | 30.50 | 152.50 |
205 | 190 | 31.67 | 158.33 |
210 | 195 | 32.50 | 162.50 |
215 | 202 | 33.67 | 168.33 |
220 | 208 | 34.67 | 173.33 |
225 or more | 214 | 35.67 | 178.33 |
CO 2 band |
Gross 3 month period £ | VAT £ |
Net £ |
120 or less | 183 | 30.50 | 152.50 |
125 | 276 | 46.00 | 230.00 |
130 | 293 | 48.83 | 244.17 |
135 | 312 | 52.00 | 260.00 |
140 | 331 | 55.17 | 275.83 |
145 | 349 | 58.17 | 290.83 |
150 | 368 | 61.33 | 306.67 |
155 | 386 | 64.33 | 321.67 |
160 | 405 | 67.50 | 337.50 |
165 | 423 | 70.50 | 352.50 |
170 | 441 | 73.50 | 367.50 |
175 | 459 | 76.50 | 382.50 |
180 | 478 | 79.67 | 398.33 |
185 | 497 | 82.83 | 414.17 |
190 | 515 | 85.83 | 429.17 |
195 | 534 | 89.00 | 445.00 |
200 | 552 | 92.00 | 460.00 |
205 | 571 | 95.17 | 475.83 |
210 | 588 | 98.00 | 490.00 |
215 | 607 | 101.17 | 505.83 |
220 | 626 | 104.33 | 521.67 |
225 or more | 644 | 107.33 | 536.67 |
CO 2 band |
Annual gross £ |
VAT £ |
Net £ |
120 or less | 737 | 122.83 | 614.17 |
125 | 1,103 | 183.83 | 919.17 |
130 | 1,179 | 196.50 | 982.50 |
135 | 1,250 | 208.33 | 1,041.67 |
140 | 1,327 | 221.17 | 1,105.83 |
145 | 1,398 | 233.00 | 1,16500 |
150 | 1,474 | 245.67 | 1,228.33 |
155 | 1,545 | 257.50 | 1,287.50 |
160 | 1,622 | 270.33 | 1,351.67 |
165 | 1,693 | 282.17 | 1,410.83 |
170 | 1,769 | 294.83 | 1,474.17 |
175 | 1,840 | 306.67 | 1,533.33 |
180 | 1,917 | 319.50 | 1,597.50 |
185 | 1,988 | 331.33 | 1,656.67 |
190 | 2,064 | 344.00 | 1,720.00 |
195 | 2,135 | 355.83 | 1,779.17 |
200 | 2,212 | 368.67 | 1,843.33 |
205 | 2,283 | 380.50 | 1,902.50 |
210 | 2,359 | 393.17 | 1,965.83 |
215 | 2,430 | 405.00 | 2,025.00 |
220 | 2,507 | 417.83 | 1,089.17 |
225 or more | 2,578 | 429.67 | 2,148.33 |
Where the CO2 emission figure is not a multiple of five, the figure is rounded down to the next multiple of five to determine the level of the charge.
For a bi-fuel vehicle which has two CO2 emissions figures, the lower of the two figures should be used.
For cars which are too old to have a CO2 emissions figure, you should identify the CO2 band based on engine size. If its cylinder capacity is:
- If its cylinder capacity is 1,400cc or less, use CO2 band 140
- If its cylinder capacity exceeds 1,400cc but does not exceed 2,000cc, use CO2 band 175;
- If its cylinder capacity exceeds 2,000cc, use CO2 band 225 or above.
CO2 band |
Gross monthly £ |
VAT £ |
Net £ |
120 or less | 58 | 9.67 | 48.33 |
125 | 87 | 14.50 | 72.50 |
130 | 92 | 15.33 | 76.67 |
135 | 98 | 16.33 | 81.67 |
140 | 104 | 17.33 | 86.67 |
145 | 110 | 18.33 | 91.67 |
150 | 116 | 19.33 | 96.67 |
155 | 122 | 20.33 | 101.67 |
160 | 127 | 21.17 | 105.83 |
165 | 133 | 22.17 | 110.83 |
170 | 139 | 23.17 | 115.83 |
175 | 145 | 24.17 | 120.83 |
180 | 151 | 25.17 | 125.83 |
185 | 156 | 26 | 130 |
190 | 163 | 27.17 | 135.83 |
195 | 169 | 28.17 | 140.83 |
200 | 174 | 29 | 145 |
205 | 180 | 30 | 150 |
210 | 185 | 30.83 | 154.17 |
215 | 192 | 32 | 160 |
220 | 198 | 33 | 165 |
225 or more | 203 | 33.83 | 169.17 |
CO 2 band |
Gross 3 month period £ | VAT £ |
Net £ |
120 or less | 174 | 29 | 145 |
125 | 262 | 43.67 | 218.33 |
130 | 279 | 46.50 | 232.50 |
135 | 296 | 49.33 | 246.67 |
140 | 314 | 52.33 | 261.67 |
145 | 332 | 55.33 | 276.67 |
150 | 349 | 58.17 | 290.83 |
155 | 367 | 61.17 | 305.83 |
160 | 385 | 64.17 | 320.83 |
165 | 402 | 67 | 335 |
170 | 419 | 69.83 | 349.17 |
175 | 437 | 72.83 | 364.17 |
180 | 454 | 75.67 | 378.33 |
185 | 472 | 78.67 | 393.33 |
190 | 490 | 81.67 | 408.33 |
195 | 507 | 84.50 | 422.50 |
200 | 525 | 87.50 | 437.50 |
205 | 543 | 90.50 | 452.50 |
210 | 559 | 93.17 | 465.83 |
215 | 577 | 96.17 | 480.83 |
220 | 595 | 99.17 | 495.83 |
225 or more | 612 | 102 | 510 |
CO 2 band |
Annual gross £ |
VAT £ |
Net £ |
120 or less | 700 | 116.67 | 583.33 |
125 | 1,048 | 174.67 | 873.33 |
130 | 1,121 | 186.83 | 934.17 |
135 | 1,188 | 198 | 990 |
140 | 1,261 | 210.17 | 1,050.83 |
145 | 1,329 | 221.50 | 1,107.50 |
150 | 1,401 | 233.50 | 1,167.50 |
155 | 1,469 | 244.83 | 1,224.17 |
160 | 1,542 | 257 | 1,285 |
165 | 1,609 | 268.17 | 1,340.83 |
170 | 1,682 | 280.33 | 1,401.67 |
175 | 1,749 | 291.50 | 1,457.50 |
180 | 1,822 | 303.67 | 1,518.33 |
185 | 1,889 | 314.83 | 1,574.17 |
190 | 1,962 | 327 | 1,635 |
195 | 2,030 | 338.33 | 1,691.67 |
200 | 2,102 | 350.33 | 1,751.67 |
205 | 2,170 | 361.67 | 1,808.33 |
210 | 2,242 | 373.67 | 1,868.33 |
215 | 2,310 | 385 | 1,925 |
220 | 2,383 | 397.17 | 1,985.83 |
225 or more | 2,450 | 408.33 | 2,041.67 |
Where the CO2 emission figure is not a multiple of five, the figure is rounded down to the next multiple of five to determine the level of the charge.
For a bi-fuel vehicle which has two CO2 emissions figures, the lower of the two figures should be used.
For cars which are too old to have a CO2 emissions figure, you should identify the CO2 band based on engine size. If its cylinder capacity is:
- If its cylinder capacity is 1,400cc or less, use CO 2 band 140
- If its cylinder capacity exceeds 1,400cc but does not exceed 2,000cc, use CO 2 band 175;
- If its cylinder capacity exceeds 2,000cc, use CO 2 band 225 or above.
- Passenger Cars
VED bands and rates for cars first registered on or after 1 April 2017
CO2 emissions (g/km) | Standard rate | First year rate |
---|---|---|
0 | £0 | £0 |
1-50 | £190 | £10 |
51-75 | £190 | £30 |
76-90 | £190 | £135 |
91-100 | £190 | £175 |
101-110 | £190 | £195 |
111-130 | £190 | £220 |
131-150 | £190 | £270 |
151-170 | £190 | £680 |
171-190 | £190 | £1,095 |
191-225 | £190 | £1,650 |
226-255 | £190 | £2,340 |
Over 255 | £190 | £2,745 |
VED bands and rates for cars registered on or after 1 March 2001 but before 1 April 2017
VED band | CO 2 emissions (g/km) | Standard rate |
---|---|---|
A | Up to 100 | £0 |
B | 101-110 | £20 |
C | 111-120 | £35 |
D | 121-130 | £160 |
E | 131-140 | £190 |
F | 141-150 | £210 |
G | 151-165 | £255 |
H | 166-175 | £305 |
I | 176-185 | £335 |
J | 186-200 | £385 |
K | 201-225* | £415 |
L | 226-255 | £710 |
M | Over 255 | £735 |
*Including cars emitting over 225g/km registered before 23 March 2006.
VED bands and rates for cars first registered on or after 1 April 2017
CO 2 emissions (g/km) | Standard rate | First year rate |
---|---|---|
0 | £0 | £0 |
1-50 | £180 | £10 |
51-75 | £180 | £30 |
76-90 | £180 | £130 |
91-100 | £180 | £165 |
101-110 | £180 | £185 |
111-130 | £180 | £210 |
131-150 | £180 | £255 |
151-170 | £180 | £645 |
171-190 | £180 | £1,040 |
191-225 | £180 | £1,565 |
226-255 | £180 | £2,220 |
Over 255 | £180 | £2,605 |
VED bands and rates for cars registered on or after 1 March 2001 but before 1 April 2017
VED band | CO 2 emissions (g/km) | Standard rate |
---|---|---|
A | Up to 100 | £0 |
B | 101-110 | £20 |
C | 111-120 | £35 |
D | 121-130 | £150 |
E | 131-140 | £180 |
F | 141-150 | £200 |
G | 151-165 | £240 |
H | 166-175 | £290 |
I | 176-185 | £320 |
J | 186-200 | £365 |
K | 201-225* | £395 |
L | 226-255 | £675 |
M | Over 255 | £695 |
*Including cars emitting over 225g/km registered before 23 March 2006.