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Personal tax and benefits

Income Tax bands of taxable income

	Tax year 2023 to 2024	Tax year 2024 to 2025
Basic rate	£1 to £37,700	£1 to £37,700
Higher rate	£37,701 to £125,140	£37,701 to £125,140
Additional rate	Over £125,140	Over £125,140

Income Tax rates

Main rates	Tax year 2023 to 2024	Tax year 2024 to 2025
Basic rate	20%	20%
Higher rate	40%	40%
Additional rate	45%	45%

These figures apply to non-savings non-dividend income, including income from employment, property, or pensions. From 2017 to 2018, the main rates were separated into the main rates, the savings rates and the default rates.

Savings rates

Savings rates	Tax year 2023 to 2024	Tax year 2024 to 2025
Starting rate for savings	0%	0%
Savings basic rate	20%	20%
Savings higher rate	40%	40%
Savings additional rate	45%	45%

These figures apply to savings income.

Dividend rates	Tax year 2023 to 2024	Tax year 2024 to 2025
Dividend ordinary rate — for dividends otherwise taxable at the basic rate	8.75%	8.75%
Dividend upper rate — for dividends otherwise taxable at the higher rate	33.75%	33.75%
Dividend additional rate — for dividends otherwise taxable at the additional rate	39.35%	39.35%

These figures apply to dividend income received above the £1,000 tax-free dividend allowance in the 2023 to 2024 tax year and dividend income received above £500 in the 2024 to 2025 tax year.

Default rates	Tax year 2023 to 2024	Tax year 2024 to 2025
Default basic rate	20%	20%
Default higher rate	40%	40%
Default additional rate	45%	45%

These figures apply to non-savings and non-dividend income of any taxpayer that is not subject to either the main rates or the Scottish rates of Income Tax.

Starting rates for savings income

	Tax year 2023 to 2024	Tax year 2024 to 2025
Starting rate for savings	0%	0%
Starting rate limit for savings	£5,000	£5,000

Income Tax rates for trustees’ income

	Tax year 2023 to 2024	Tax year 2024 to 2025
Thresholds	First £1,000 of accumulated and discretionary income charged at dividend ordinary and default basic rates	£500 de minimis trusts amount
Dividend ordinary rate	8.75%	8.75%
Default basic rate	20%	20%
Dividend trust rate for accumulated and discretionary dividend income	39.35%	39.35%
Trust rate for other accumulated and discretionary income	45%	45%

Income Tax allowances

Personal Allowance

	Tax year 2023 to 2024	Tax year 2024 to 2025
Personal allowance	£12,570	£12,570
Income limit for Personal Allowance	£100,000	£100,000
Income limit for Married Couple’s Allowance	£34,600	£37,000

The Personal Allowance reduces where the income is above £100,000 — by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of date of birth.

The income limit for Married Couple’s Allowance is an age-related allowance. It is reduced by £1 for every £2 of income over this limit.

Marriage Allowance

	Tax year 2023 to 2024	Tax year 2024 to 2025
Marriage Allowance	£1,260	£1,260

This transferable allowance is available to married couples and civil partners who are not in receipt of Married Couple’s Allowance. A spouse or civil partner who is not liable to Income Tax, or not liable at the higher or additional rates, can transfer this amount of their unused personal allowance to their spouse or civil partner. The recipient must not be liable to Income Tax at the higher or additional rates.

Married Couple’s Allowance for those born before 6 April 1935

	Tax year 2023 to 2024	Tax year 2024 to 2025
Maximum amount of Married Couple’s Allowance	£10,375	£11,080
Minimum amount of Married Couple’s Allowance	£4,010	£4,280

The relief for this allowance is given at 10%.

Blind Person’s Allowance

	Tax year 2023 to 2024	Tax year 2024 to 2025
Blind Person’s Allowance	£2,870	£3,070

Dividend Allowance

	Tax year 2023 to 2024	Tax year 2024 to 2025
Dividend Allowance	£1,000	£500

Personal Savings Allowance

	Tax year 2023 to 2024	Tax year 2024 to 2025
Personal Savings Allowance for basic rate taxpayers	£1,000	£1,000
Personal Savings Allowance for higher taxpayers	£500	£500

From April 2016, the new Personal Savings Allowance means that basic rate taxpayers do not have to pay tax on the first £1,000 of savings income they receive and higher rate taxpayers do not have tax to pay on their first £500 of savings income.

Company car tax — all cars

CO2 emissions, g/km	Electric range (miles)	Appropriate percentage (%) for 2024 to 2025	Appropriate percentage (%) for 2025 to 2026	Appropriate percentage (%) for 2026 to 2027	Appropriate percentage (%) for 2027 to 2028
0	Not applicable	2	3	4	5
1 to 50	More than 130	2	3	4	5
1 to 50	70 to 129	5	6	7	8
1 to 50	40 to 69	8	9	10	11
1 to 50	30 to 39	12	13	14	15
1 to 50	Less than 30	14	15	16	17
51 to 54	—	15	16	17	18
55 to 59	—	16	17	18	19
60 to 64	—	17	18	19	20
65 to 69	—	18	19	20	21
70 to 74	—	19	20	21	21
75 to 79	—	20	21	21	21
80 to 84	—	21	22	22	22
85 to 89	—	22	23	23	23
90 to 94	—	23	24	24	24
95 to 99	—	24	25	25	25
100 to 104	—	25	26	26	26
105 to 109	—	26	27	27	27
110 to 114	—	27	28	28	28
115 to 119	—	28	29	29	29
120 to 124	—	29	30	30	30
125 to 129	—	30	31	31	31
130 to 134	—	31	32	32	32
135 to 139	—	32	33	33	33
140 to 144	—	33	34	34	34
145 to 149	—	34	35	35	35
150 to 154	—	35	36	36	36
155 to 159	—	36	37	37	37
160 and over	—	37	37	37	37

For all cars, drivers must add 4% to their appropriate percentage if the car is propelled solely by diesel (up to a maximum of 37%). Cars that meet the Real Driving Emissions Step 2 (RDE2) standard are exempt from the diesel supplement. The RDE2 standard sets a maximum permitted level of car NOx emissions in real world driving situations, and it is measured through portable emissions-measuring equipment in a variety of real driving trips. Rates for fully electric cars (0 grams per km) are capped at 5%.

Rates for ultra-low emission cars (1 to 74 grams per km) are capped at 20% for the tax year 2025 to 2026. They are capped at 21% for the tax years 2026 to 2027 and 2027 to 2028. Rates for bands 75 to 170 grams per km and above will remain frozen for the 2026 to 2027 and 2027 to 2028 tax years.

National Insurance contributions

Employee and employer Class 1 rates and thresholds (£ per week)

	Tax year 2023 to 2024	Tax year 2024 to 2025
Lower Earnings Limit (LEL)	£123	£123
Primary Threshold (PT)	£242	£242
Secondary Threshold (ST)	£175	£175
Upper Earnings Limit (UEL)	£967	£967
Upper Secondary Threshold for under 21s	£967	£967
Apprentice Upper Secondary Threshold (AUST) for under 25s	£967	£967
Freeport Upper Secondary Threshold (FUST)	£481	£481
Investment Zones Upper Secondary Threshold (IZUST)	£481	£481
Veteran Upper Secondary Threshold (VUST)	£967	£967
Employment Allowance (per employer)	£5,000 per year	£5,000 per year

From 6 April 2022 to 5 November 2022, the main and additional rates of Class 1 National Insurance contributions (except for the 0% bands) included a 1.25 percentage point increase due to the Health and Social Care Levy.

The National Insurance contributions Primary Threshold was set at £190 per week between 6 April to 5 July 2022, then increased to £242 per week in line with the announcement made at Spring Statement 2022 to align the National Insurance contributions Primary Threshold and Lower Profits Limit with the Personal Allowance for Income Tax.

Employee’s (primary) Class 1 contribution rates (£ per week)

Earnings band	Tax year 2023 to 2024	Tax year 2024 to 2025
Below Lower Earnings Limit (LEL)	Not applicable	Not applicable
Lower Earning Limit (LEL) to Primary Threshold (PT)	0%	0%
Primary Threshold (PT) to Upper Earnings Limit (UEL)	Between 6 April 2023 and 5 January 2024: 12% Between 6 January 2024 and 5 April 2024: 10%	8%
Above Upper Earnings Limit (UEL)	2%	2%

Married woman’s reduced rate for (primary) Class 1 contribution rates

	Tax year 2023 to 2024	Tax year 2024 to 2025
Weekly earnings from between the Primary Threshold (PT) and Upper Earnings Limit (UEL)	Between 6 April 2023 and 5 January 2024: 5.85% Between 6 January 2024 and 5 April 2024: 3.85%	1.85%
Weekly earnings above the Upper Earnings Limit (UEL)	2%	2%

Employer’s (secondary) Class 1 contribution rates

Earnings band	Tax year 2023 to 2024	Tax year 2024 to 2025
Below Secondary Threshold (ST)	0%	0%
Above Secondary Threshold (ST)	13.8%	13.8%

Employer’s (secondary) Class 1 contribution rates for employees under 21

Earnings band	Tax year 2023 to 2024	Tax year 2024 to 2025
Below Upper Secondary Threshold (UST)	0%	0%
Above Upper Secondary Threshold (UST)	13.8%	13.8%

Employer’s (secondary) Class 1 contribution rates for Apprentices under 25

Earnings band	Tax year 2023 to 2024	Tax year 2024 to 2025
Below Apprentice Upper Secondary Threshold (AUST)	0%	0%
Above Apprentice Upper Secondary Threshold (AUST)	13.8%	13.8%

Employer’s (secondary) Class 1 contribution rates for eligible employees of Freeports

Earnings band	Tax year 2023 to 2024	Tax year 2024 to 2025
Below Freeports Upper Secondary Threshold (FUST)	0%	0%
Above Freeports Upper Secondary Threshold (FUST)	13.8%	13.8%

Employer’s (secondary) Class 1 contribution rates for eligible employees of Investment Zones

Earnings band	Tax year 2023 to 2024	Tax year 2024 to 2025
Below Investment Zone Upper Secondary Threshold (IZUST)	0%	0%
Above Investment Zone Upper Secondary Threshold (IZUST)	13.8%	13.8%

Employer’s (secondary) Class 1 contribution rates for qualifying veterans

Earnings band	Tax year 2023 to 2024	Tax year 2024 to 2025
Below Veterans Upper Secondary Threshold (VUST)	0%	0%
Above Veterans Upper Secondary Threshold (VUST)	13.8%	13.8%

Self-employed Class 2 contributions rates and thresholds (£ per week)

Class 2 thresholds (£ annual profit)

	Tax year 2023 to 2024	Tax year 2024 to 2025
Small Profits Thresholds (SPT)	£6,725	£6,725
Lower Profits Thresholds (LPT)	£12,570	Not applicable

At Spring Statement 2022, it was announced that self-employed individuals earning between the Small Profits Threshold and the Lower Profits Limit would not pay Class 2 National Insurance contributions while continuing to build up entitlement to contributory benefits. The new level at which Class 2 National Insurance contributions is paid is the Lower Profits Threshold. This was set at £11,908 in 2022 to 2023 to align with the Lower Profits Limit, and along with the Lower Profits Limit, will increase to £12,570 for 2023 to 2024.

Class 2 contribution rates (£ per week)

Annual Profits Band	Tax year 2023 to 2024	Tax year 2024 to 2025
Below Small Profits Threshold (SPT)	£3.45 (voluntary)	£3.45 (voluntary)
Small Profits Threshold (SPT) to Lower Profits Threshold (LPT)	0%	0%
Above Lower Profits Threshold (LPT)	£3.45	£0
Special Class 2 rate for share fisherman	£4.10	£4.10
Special Class 2 rate for volunteer development workers	£6.15	£6.15

Class 3 National Insurance contributions: other rates and thresholds (£ per week)

	Tax year 2023 to 2024	Tax year 2024 to 2025
Voluntary contributions	£17.45	£17.45

Self-employed Class 4 rates and thresholds (£ per year)

	Tax year 2023 to 2024	Tax year 2024 to 2025
Lower Profits Limit (LPL)	£12,570	£12,570
Upper Profits Limit (UPL)	£50,270	£50,270

The main and additional rates of Class 4 National Insurance contributions are assessed on an annual basis, therefore an average rate was applied to ensure consistency and fairness with Class 1 National Insurance contributions payers who paid the increased National Insurance contributions rate between 6 April and 5 November 2022.

Self-employed National Insurance contributions are calculated on an annual basis, therefore, the Lower Profits Limit was set at an average threshold of £11,908 for the 2022 to 2023 tax year which is equivalent to 13 weeks of the threshold at £9,880 and 39 weeks at £12,570, reflecting the position for employees.

Class 4 contribution rates

Annual Profits band	Tax year 2023 to 2024	Tax year 2024 to 2025
Below Lower Profits Limit (LPL)	0%	0%
Lower profits Limit (LPL) to Upper Profits Limit (UPL)	9%	6%
Above Upper Profits Limit (UPL)	2%	2%

The main and additional rates of Class 4 National Insurance Contributions are assessed on an annual basis, therefore an average rate was applied to ensure consistency and fairness with Class 1 National Insurance Contributions payers who paid the increased National Insurance Contributions rate between 6 April and 5 November 2022.

Self-employed National Insurance Contributions are calculated on an annual basis, therefore, the Lower Profits Limit was set at an average threshold of £11,908 for the 2022 to 2023 tax year which is equivalent to 13 weeks of the threshold at £9,880 and 39 weeks at £12,570, reflecting the position for employees.

Tax credits, Child Benefit and Guardian’s Allowance

Following the publication of Consumer Price Index (CPI) figures for September 2023, the government announced at Autumn Statement 2023 the new benefits rates for 2024 to 2025.

Working Tax Credit (£ per year unless stated)

	Tax year 2023 to 2024	Tax year 2024 to 2025
Basic element	£2,280	£2,435
Couple and lone parent element	£2,340	£2,500
30 hour element	£950	£1,015
Disabled worker element	£3,685	£3,935
Severe disability element	£1,595	£1,705

Childcare element of Working Tax Credit (£ per year unless stated)

	Tax year 2023 to 2024	Tax year 2024 to 2025
Maximum eligible cost for one child	£175 per week	£175 per week
Maximum eligible cost for two or more children	£300 per week	£300 per week
Percentage of eligible costs covered	70%	70%

Child Tax Credit (£ per year unless stated)

	Tax year 2023 to 2024	Tax year 2024 to 2025
Family element	£545	£545
Child element	£3,235	£3,455
Disabled child element	£3,905	£4,170
Severely disabled child element	£5,480	£5,850
Income threshold	£7,455	£7,955
Withdrawal rate (%)	41%	41%
First threshold for those entitled to Child Tax Credit only	£18,725	£19,995
Income rise disregard	£2,500	£2,500
Income fall disregard	£2,500	£2,500

Child Benefit per week

	Tax year 2023 to 2024	Tax year 2024 to 2025
Eldest or only child	£24	£25.60
Other children	£15.90	£16.95

Guardian’s Allowance per week

	Tax year 2023 to 2024	Tax year 2024 to 2025
Guardian’s Allowance	£20.40	£21.75

Capital, assets and property

Pensions tax relief

	Tax year 2023 to 2024	Tax year 2024 to 2025
Lifetime Allowance limit	No Lifetime Allowance charge	Not applicable
Lump Sum Allowance	Not applicable	£268,275
Lump Sum and Death Benefit Allowance	Not applicable	£1,073,100
Overseas Transfer Allowance	Not applicable	£1,073,100
Annual Allowance Limit	£60,000	£60,000
Money Purchase Annual Allowance	£10,000	£10,000
Tapered Annual Allowance (applies when an individual has ‘adjusted income’ over this amount provided the ‘threshold income’ test is met)	£260,000	£260,000

Tax free savings accounts

	Tax year 2023 to 2024	Tax year 2024 to 2025
Individual Savings Account (ISA) subscription limit	£20,000	£20,000
Junior ISA subscription limit	£9,000	£9,000
Lifetime ISA (LISA) subscription limit	£4,000	£4,000
Child Trust Fund (CTF) subscription limit	£9,000	£9,000

Capital Gains Tax

Main rates for individuals other than gains on residential property (not eligible for Private Residence Relief) and carried interest

	Tax year 2023 to 2024	Tax year 2024 to 2025
Income Tax basic rate payer	10%	10%
Income Tax higher rate payer	20%	20%

Rates for individuals (for gains on residential property not eligible for Private Residence Relief)

	Tax year 2023 to 2024	Tax year 2024 to 2025
Income Tax basic rate payer	18%	18%
Income Tax higher rate payer	28%	24%

Rates for individuals (for gains on carried interest)

	Tax year 2023 to 2024	Tax year 2024 to 2025
Income Tax basic rate payer	18%	18%
Income Tax higher rate payer	28%	28%

Main rate for trustees and personal representatives other than gains on residential property (not eligible for Private Residence Relief) and carried interest

Tax year 2023 to 2024	Tax year 2024 to 2025
20%	20%

Rate for trustees and personal representatives (for gains on residential property not eligible for Private Residence Relief)

Tax year 2023 to 2024	Tax year 2024 to 2025
28%	24%

Rate for personal representatives for gains on carried interest

Tax year 2023 to 2024	Tax year 2024 to 2025
28%	28%

Annual exempt amount (AEA) for individuals and personal representatives

Tax year 2023 to 2024	Tax year 2024 to 2025
£6,000	£3,000

Annual exempt amount for most trustees

Tax year 2023 to 2024	Tax year 2024 to 2025
£3,000	£1,500

Rate on gains subject to business asset disposal relief

Tax year 2023 to 2024	Tax year 2024 to 2025
10%	10%

Rate on gains subject to investors’ relief

Tax year 2023 to 2024	Tax year 2024 to 2025
10%	10%

Business asset disposal relief: lifetime limit on qualifying gains

Tax year 2023 to 2024	Tax year 2024 to 2025
£1 million	£1 million

Investors’ relief: lifetime limit on gains for external investors

Tax year 2023 to 2024	Tax year 2024 to 2025
£10 million	£10 million

Inheritance Tax

	Tax year 2023 to 2024	Tax year 2024 to 2025
Rate (for estates)	40%	40%
Reduced rate (for estates leaving 10% or more to charity)	36%	36%
Rate (for chargeable lifetime transfers)	20%	20%
Nil-rate band limit	£325,000	£325,000
Residence nil-rate band limit	£175,000	£175,000
Taper threshold for residence nil-rate band	£2 million	£2 million

 

Stamp Duty Land Tax — residential property from 23 September 2022 to 31 March 2025

Property value	Rate (on portion of value above threshold)	Rate (on portion of value above threshold) if purchase is of an additional residential property	Rate (on portion of value above threshold) on or after 1 April 2021 if purchase is of residential property by certain non-UK residents	Rate (on portion of value above threshold) on or after 1 April 2021 if purchase is of an additional residential property and by certain non-UK residents
£0 to £250,000	0%	3%	2%	5%
£250,001 to £925,000	5%	8%	7%	10%
£925,001 to £1.5 million	10%	13%	12%	15%
Over £1.5 million	12%	15%	14%	17%

Check HMRC guidance on whether the higher rate applies and whether a purchase is a ‘non-resident’ transaction.

Net Present Value (NPV) of the rent	Rate between 23 September 2022 and 31 March 2025 (on portion of value above threshold)
£0 to £250,000	0%
Over £250,000	1%

Stamp Duty Land Tax — rates for first-time buyers purchasing properties worth £625,000 or less from 23 September 2022 to 31 March 2025

Property value	Rate (on portion of value above threshold) if purchase qualified for first-time buyer relief
£0 to £425,000	0%
£425,001 to £625,000	5%

Stamp Duty Land Tax — non-residential property

Purchase and Premium Transactions

Property Value	Rate on or after 17 March 2016 (on portion of value above threshold)
£0 to £150,000	0%
£150,001 to £250,000	2%
£250,001 and over	5%

Net Present Value (NPV) of the lease	Rate on or after 17 March 2016 (on portion of value above threshold)
£0 to £150,000	0%
£150,001 to £5 million	1%
Over £5 million	2%

Annual Tax on Enveloped Dwellings (ATED)

The ATED charges increase automatically each year in line with inflation (based on the previous September’s Consumer Price Index (CPI)).

The ATED annual charges will rise by 6.7% from 1 April 2024 in line with the September 2023 CPI.

The following table shows the property value band and what the revised charges will be for the 2023 to 2024 and 2024 to 2025 chargeable period.

Taxable value of the property	Charge for tax year 2023 to 2024	Charge for tax year 2025 to 2026
£500,001 to £1 million	£4,150	£4,400
£1,000,001 to £2 million	£8,450	£9,000
£2,000,001 to £5 million	£28,650	£30,550
£5,000,001 to £10 million	£67,050	£71,500
£10,000,001 to £20 million	£134,550	£143,550
Over £20 million	£269,450	£287,500

Stamp Duty and Stamp Duty Reserve Tax

No Stamp Duty is charged where the certified consideration is less than £1,000.

Stamp Duty is charged on the purchase of own shares by a company under section 690 Companies Act 2006. The SH03 form is the chargeable instrument.

Where an instrument transfers either Intellectual Property (IP) or goodwill and shares, Stamp Duty is not chargeable on the consideration that relates to the IP or goodwill. A just and reasonable apportionment must be made.

Where an instrument grants a call option, and is itself a marketable security, Stamp Duty is charged at 0.5% of the consideration given for the premium.

Transfers of, and agreements to, transfer securities

	Standard Rate	Higher Rate
Stamp Duty	0.5% (rounded up to next £5)	Not applicable
Stamp Duty Reserve Tax	0.5%	Not applicable

Transfers of securities to clearance services and depositary receipt issuers

	Standard Rate	Higher Rate
Stamp Duty	Not applicable	1.5% (rounded up to next £5)
Stamp Duty Reserve Tax	Not applicable	1.5%

Rates for transfers on sale of interests in partnerships which hold shares and certain other securities

The Stamp Duty charge is capped at 0.5% of the market value of any shares held by the partnership (less any loans secured on them), multiplied by the percentage partnership interest transferred.

Bearer instruments

Transaction	Stamp Duty	Stamp Duty Reserve Tax
Transfer of bearer instrument	1.5%	0.5%
Transfer of non-UK bearer instrument by usage	0.2% of market value	Not applicable
Transfer of deposit certificate for stock of single non-UK company	0.2% of market value	Not applicable

In 2015 the Companies Act 2006 was amended to prohibit the creation of bearer shares by UK companies, and all existing bearer shares had to be cancelled or converted into registered shares.

Therefore, the charge remains only on the transfer on sale of bearer shares issued by or on behalf of non-UK companies, if the transfer occurs in the UK.

It may also apply on the transfer of certain bearer debt securities.

Stamp Duty on legacy land transactions

Where an agreement for a land transaction was entered into on or before 10 July 2003, but the instrument legally completing that contract is executed after that date, then the transaction will be subject to Stamp Duty, not Stamp Duty Land Tax. However, if the contract was not substantially performed before 10 July 2003 and has been varied, or rights under it have been assigned or sub-sold after 10 July 2003, Stamp Duty Land Tax may apply on completion.

If an instrument was executed to complete a land transaction at the time of the original transfer (but is only now being presented to HMRC), then the rate in force at that time will apply.

For rates before 28 March 2000, see the Stamp Taxes Manual, Appendix C, pages 324 to 334 on the National Archives website.

Freehold conveyances and transfers for instruments legally completing contracts made on or after 3 July 1997

Certified transfer value	Instruments executed between 28 March 2000 and 16 March 2005	Instruments executed between 17 March 2005 and 22 March 2006	Instruments executed after 22 March 2006
£60,000 and under	nil	nil	nil
£120,000 and under	1%	nil	nil
£125,000 and under	1%	1%	nil
£250,000 and under	1%	1%	1%
£500,000 and under	3%	3%	3%
Over £500,000 or uncertified	4%	4%	4%

For instruments legally completing contracts made on or before 2 July 1997, the rate is 1%. The Stamp Duty is rounded to the next £5. No duty is charged on instruments containing a certified transfer value of £30,000 and under.

Leasehold property: average rent of lease

The rates in the following table are based on the average rent of the lease.

Stamp Duty rates: leasehold — average rent

Term of lease	Rate
7 years or less — annual rent £5,000 or less	nil
7 years or less — annual rent more than £5,000	1%
7 to 35 years	2%
35 to 100 years	12%
Over 100 years	24%

Leasehold property: lease premium

The rates in the following table are based on the certified value in the transfer document.

Stamp Duty rates: leasehold — on lease premium

Certified value Rate	Rate
£60,000, annual rent £600 or less	nil
£250,000	1%
£500,000	3%
More than £500,000	4%

Business and financial services

Corporation Tax rates

	Financial year 2022 to 2023	Financial year 2023 to 2024	Financial year 2024 to 2025
Main rate	19%	25%	25%
Small profits rate	Not applicable	19%	19%
Lower threshold	Not applicable	£50,000	£50,000
Upper threshold	Not applicable	£250,000	£250,000
Marginal relief standard fraction	Not applicable	3/200ths	3/200ths
North Sea oil and gas ring fence profits	See footnote	See footnote	See footnote

Marginal relief is available for companies with profits between £50,000 and £250,000. Find out to how to calculate marginal relief.

For North Sea oil and gas ring fence profits the main rate is 30% and the small profits rate is 19%. The marginal relief ring fence fraction is 11/400ths. The lower and upper limits (previously £300,000 and £1.5 million respectively) for ring fence profits are aligned with those for the non-ring fence profits from financial year 2023 onwards.

Corporation Tax allowance and reliefs

	Financial year 2023 to 2024	Financial year 2024 to 2025
Plant and machinery: main rate expenditure	18%	18%
Plant and machinery: special rate expenditure	6%	6%
Structures and Building Allowance (SBA)	3%	3%
Annual investment allowance (AIA)	£1 million	£1 million
Enhanced Capital Allowances in Freeports	100%	100%
Enhanced Capital Allowances in Investment Zones	100%	100%
Enhanced Structures and Buildings Allowance in Freeports	10%	10%
Enhanced Structures and Buildings Allowance in Investment Zones	10%	10%
50% Special Rate First Year Allowance	50%	50%
Full Expensing: 100% First Year Allowance	100%	100%
Research and Development (R&D) tax credits SME scheme deduction rate	186%	Not applicable
R&D tax credits SME scheme payable credit	10%	Not applicable
R&D Intensive SME deduction rate	186%	186%
R&D Intensive SME payable credit	14.5%	14.5%
R&D Intensive SME intensity ratio	40%	30%
R&D Expenditure Credit	20%	Not applicable
R&D Merged Scheme expenditure credit	Not applicable	20%
Patent Box	10%	10%
Film tax relief	25% or 34%	25% or 34%
High-end TV tax relief	25% or 34%	25% or 34%
Videogames tax relief	25% or 34%	25% or 34%
Animation tax relief	25% or 39%	25% or 39%
Children’s TV tax relief	25% or 39%	25% or 39%
Independent Film Tax Credit	Not applicable	53%
Open ended investment companies and authorised unit trusts	20%	20%

From 1 January 2024 an Audio-Visual Expenditure Credit and a Video Games Expenditure Credit will be implemented. The Video Games Expenditure Credit will have a rate of 34%. Under the Audio-Visual Expenditure Credit, film and high end TV will be eligible for a rate of 34% and animation and children’s TV will be eligible for a rate of 39%.

For open ended investment companies and authorised unit trusts the applicable corporation tax rate is 20%.

Cultural corporation tax allowance and reliefs

	Financial year 2021 to 2022 (prior to 27 October 2021)	Financial year 2021 to 2022 (after 20 October 2021)	Financial year 2022 to 2023	Financial year 2023 to 2024	Financial year 2024 to 2025
Museums and Galleries Exhibition Tax Relief	20% or 25%	45% or 50%	45% or 50%	45% or 50%	45% or 50%
Theatre Tax Relief	20% or 25%	45% or 50%	45% or 50%	45% or 50%	45% or 50%
Orchestra Tax Relief	25%	50%	50%	50%	50%

For Museums and Galleries Exhibition Tax Relief, two rates of reliefs are provided. The lower for non-touring productions and the higher for touring productions.

For Theatre Tax Relief, two rates of reliefs are provided. The lower for non-touring productions and the higher for touring productions.

Pillar 2 Global Minimum Tax

	For accounting periods beginning on or after 31 December 2023
Global revenue threshold	€750 million
Multinational Top-up Tax — Minimum Effective Tax Rate	15%
Domestic Top-up Tax — Minimum Effective Tax Rate	15%

Bank Levy

	Chargeable equity and long-term chargeable liabilities	Short-term chargeable liabilities
1 January 2011 to 28 February 2011	0.025%	0.05%
1 March 2011 to 30 April 2011	0.05%	0.1%
1 May 2011 to 31 December 2011	0.0375%	0.075%
1 January 2012 to 31 December 2012	0.044%	0.088%
1 January 2013 to 31 December 2013	0.065%	0.130%
1 January 2014 to 31 March 2015	0.078%	0.156%
1 April 2015 to 31 December 2015	0.105%	0.21%
1 January 2016 to 31 December 2016	0.09%	0.18%
1 January 2017 to 31 December 2017	0.085%	0.17%
1 January 2018 to 31 December 2018	0.08%	0.16%
1 January 2019 to 31 December 2019	0.075%	0.15%
1 January 2020 to 31 December 2020	0.07%	0.14%
1 January 2021 onwards	0.05%	0.1%

Bank surcharge

	Rate on profits	Group allowance
January 2016 to April 2023	8%	£25 million
April 2023 onwards	3%	£100 million

Diverted Profits Tax

	Financial year 2023 to 2024	Financial year 2024 to 2025	Financial year 2025 to 2026
Headline rate	31%	31%	31%
Adjusted ring fence profits or notional adjusted ring fence profits	55%	55%	55%
Banking surcharge profits or notional banking surcharge	33%	33%	33%

Digital Services Tax

1 April 2020 onwards	Global revenue threshold	UK revenue threshold	UK revenue allowance
2%	£500 million	£25 million	£25 million

Economic Crime (Anti-Money Laundering) Levy

Entity or payee size	UK revenue threshold	1 April 2023 to 31 March 2024	1 April 2024 to 31 March 2025	1 April 2025 to March 2026
Small	£10.2 million or less	Not applicable (exempt)	Not applicable (exempt)	Not applicable (exempt)
Medium	More than £10.2 million, not more than £36 million	£10,000	£10,000	£10,000
Large	More than £36 million, not more than £1 billion	£36,000	£36,000	£36,000
Very large	More then £1 billion	£250,000	£500,000	£500,000

UK oil and gas taxes

	Financial year 2022 to 2023	Financial year 2023 to 2024	Financial year 2024 to 2025
Petroleum revenue tax	0%	0%	0%
Ring fence corporation tax	30%	30%	30%
Supplementary charge	10%	10%	10%

For North Sea oil and gas ring fence profits the main rate is 30% and the small profits rate is 19%. The marginal relief ring fence fraction is 11/400ths.

Public Interest Business Protection Tax

	January 2022 to April 2024
Rate	75%
Threshold of taxable assets	£100 million

Energy Profits Levy

Date	Rate
26 May 2022 to 31 December 2022	25%
From 1 January 2023	35%

Energy Profits Levy — Energy Security Investment Mechanism

	Financial year 2023-2024	Financial year 2024-2025
Oil threshold price	$71.40 per barrel	$74.21 per barrel
Gas threshold price	£0.54 pence per therm	£0.57 pence per therm

Electricity Generator Levy

	January 2023 to 31 March 2023	Financial year 2023 to 2024	Financial year 2024 to 2025
Rate	45%	45%	45%
Benchmark price	£75 per megawatt hour	£75 per megawatt hour	£77.94 per megawatt hour
Allowance	£10 million	£10 million	£10 million

Residential Property Developer Tax

Rate from 1 April 2022 onwards	UK annual allowance
4%	£25 million

Business rates

	Financial year 2022 to 2023	Financial year 2023 to 2024	Financial 2024 to 2025
England standard multiplier	51.2 pence	51.2 pence	54.6 pence
England small business multiplier	49.9 pence	49.9 pence	49.9 pence

Small business multiplier applies to properties with a rateable value of less than £51,000.

Indirect tax

Alcohol duty

Product	Duty rate from 1 August 2023 until 1 February 2025 (per litre of alcohol in the product)
All alcoholic products: less than 3.5% alcohol by volume (ABV)	£9.27
Still cider and perry: at least 3.5% — less than 8.5% ABV	£9.67
Sparkling cider and perry: at least 3.5% — not exceeding 5.5% ABV	£9.67
Beer: at least 3.5% — less than 8.5% ABV	£21.01
Spirits, wine, and other fermented products: at least 3.5% — less than 8.5% ABV	£24.77
Sparkling cider and perry: exceeding 5.5% ABV — less than 8.5% ABV	£24.77
All alcoholic products: at least 8.5% but not exceeding 22% ABV	£28.50
All alcoholic products: exceeding 22% ABV	£31.64

Reduced rates for qualifying draught products

Product	Duty rate from 1 August 2023 until 1 February 2025 (per litre of alcohol in the product)
All alcoholic products: less than 3.5% ABV	£8.42
Still cider and perry: at least 3.5% — less than 8.5% ABV	£8.78
Sparkling cider and perry: at least 3.5% — not exceeding 5.5% ABV	£8.78
Beer, spirits, wine, and other fermented products: at least 3.5% (but less than 8.5% ABV)	£19.08
Sparkling cider and perry: exceeding 5.5% — less than 8.5% ABV	£19.08

Wine between 11.5% and 14.5% ABV will be treated if it is 12.5% ABV for the purposes of calculating the charge to alcohol duty from 1 August 2023 up to and including 31 January 2025.

Tobacco products

Cigarettes

	Duty rate plus ad valorem element	Minimum Excise Tax
From 15 March 2023	An amount equal to 16.5% of the retail price plus £294.72 per 1,000 cigarettes	£393.45 per 1,000 cigarettes
From 22 November 2023	An amount equal to 16.5% of the retail price plus £316.70 per 1,000 cigarettes	£422.80 per 1,000 cigarettes

Cigars

	Duty rate plus ad valorem element	Minimum Excise Tax
From 15 March 2023	£367.61 per kilogram	Not applicable
From 22 November 2023	£395.03 per kilogram	Not applicable

Hand-rolling tobacco

	Duty rate plus ad valorem element	Minimum Excise Tax
From 15 March 2023	£351.03 per kilogram	Not applicable
From 22 November 2023	£412.32 per kilogram	Not applicable

Other smoking tobacco and chewing tobacco

	Duty rate plus ad valorem element	Minimum Excise Tax
From 15 March 2023	£161.62 per kilogram	Not applicable
From 22 November 2023	£173.68 per kilogram	Not applicable

Tobacco for heating

	Duty rate plus ad valorem element	Minimum Excise Tax
From 15 March 2023	£302.93 per kilogram	Not applicable
From 22 November 2023	£325.53 per kilogram	Not applicable

Gambling duties

	Tax year 2023 to 2024	Tax year 2024 to 2025
Percentage of bingo promotion profits	10%	10%
Percentage of ‘net stake receipts’ for fixed odds bets and totalisator bets on horse or dog races	15%	15%
Percentage of ‘net stake receipts’ for financial spread bets	3%	3%
Percentage of ‘net stake receipts’ for all other spread bets	10%	10%
Percentage of net pool betting receipts	15%	15%
Percentage of the price paid or payable on taking a ticket or chance in a lottery	12%	12%
Percentage of remote gaming profits	21%	21%
Percentage of the net takings from dutiable machine games with a maximum cost to play not more than 20 pence and a maximum cash prize not more than £10 (Type 1 machines)	5%	5%
Percentage of net takings from machines which are not Type 1 machines but where the cost to play cannot exceed £5	20%	20%
Percentage of net takings from dutiable machine games where the maximum cost to play can exceed £5	25%	25%

Gaming Duty

Figures for accounting periods beginning on or after 1 April 2023

Tax rate	Gross gaming yield
15%	£2,686,000
20%	£1,852,000
30%	£3,243,000
40%	£6,845,000
50%	Remainder

Figures for accounting periods beginning on or after 1 April 2024

Tax rate	Gross gaming yield
15%	£2,686,000
20%	£1,852,000
30%	£3,243,000
40%	£6,845,000
50%	Remainder

Insurance Premium Tax

	Tax year 2023 to 2024	Tax year 2024 to 2025
Standard rate	12%	12%
Higher rate	20%	20%

Soft Drinks Industry Levy

	To 6 March 2024	From 6 March 2024
Standard rate	18 pence per litre	18 pence per litre
Higher rate	24 pence per litre	24 pence per litre

Main rates of Climate Change Levy

Taxable commodity	Rate from 1 April 2023	Rate from 1 April 2024	Rate from 1 April 2025
Electricity (£ per kilowatt hour)	0.00775	0.00775	0.00775
Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility (£ per kilowatt hour)	0.00672	0.00775	0.00775
Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state (£ per kilogram)	0.02175	0.02175	0.02175
Any other taxable commodity (£ per kilogram)	0.05258	0.06064	0.06064

Reduced rates of Climate Change Levy (percentage of main rates payable by holders of a climate change agreement)

Taxable commodity	Rate from 1 April 2023	Rate from 1 April 2024	Rate from 1 April 2025
Electricity (percentage of main rate)	8%	8%	8%
Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility (percentage of main rate)	12%	11%	11%
Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state (percentage of main rate)	23%	23%	23%
Any other taxable commodity (percentage of main rate)	12%	11%	11%

Carbon Price Support rates of Climate Change Levy and Fuel Duty

	Rate from 1 April 2021 to 31 March 2026
Carbon price equivalent (£ per tonne of carbon dioxide)	£18

Supplies of commodity used in electricity generation

	Rate from 1 April 2021 to 31 March 2026
Natural gas (£ per kilowatt hour)	0.00331
Liquefied petroleum gas (£ per kilogram)	0.05280
Coal and other taxable solid fossil fuels (£ per gross gigajoule)	1.54790
Gas oil, rebated bioblend and kerosene (£ per litre)	0.04916
Fuel oil other heavy oil and rebated light oil (£ per litre)	0.05711

Aggregates Levy

Taxable commodity	Rate from 1 April 2023	Rate from 1 April 2024	Rate from 1 April 2025
Commercially exploited taxable aggregate	£2 per tonne	£2.03 per tonne	£2.08 per tonne

Landfill Tax: rates for 2024 to 2026

Material sent to landfill	Rate from 1 April 2024	Rate from 1 April 2025
Coverage	England and Northern Ireland	England and Northern Ireland
Standard rated (per tonne)	£103.70	£126.15
Lower rated (per tonne)	£3.30	£4.05

Landfill Tax was devolved to the Scottish Parliament in April 2015 and to the Welsh Parliament (Senedd Cymru) in April 2018.

Plastic Packaging Tax

This applies to plastic packaging with less than 30% recycled plastic content.

Date	Rate
From 1 April 2022	£200 per tonne
From 1 April 2023	£210.82 per tonne
From 1 April 2024	£217.85 per tonne

Air Passenger Duty rates for 2023 to 2024

Air Passenger Duty (APD) applies to flights aboard aircraft 5.7 tonnes and above.

Rates for direct long-haul flights from Northern Ireland are devolved and set at £0. Direct long-haul journeys are those where the first leg of the journey is to a destination outside Band A.

Bands (approximate distance in miles from the UK)	Reduced rate (lowest class of travel) from 1 April 2023	Standard rate (other than the lowest class of travel) from 1 April 2023	Higher rate from 1 April 2023
Domestic (flights within the UK)	£6.50	£13	£78
Band A (0 to 2,000 miles)	£13	£26	£78
Band B (2,001 to 5,500 miles)	£87	£191	£574
Band C (over 5,500 miles)	£91	£200	£601

Where a class of travel provides a seat pitch in excess of 1.016 metres (40 inches), the standard rate is the minimum rate that applies.

The higher rate applies to flights on aircraft of 20 tonnes and above, with fewer than 19 seats.

Air Passenger Duty rates for 2024 to 2025

Air Passenger Duty (APD) applies to flights aboard aircraft 5.7 tonnes and above.

Rates for direct long-haul flights from Northern Ireland are devolved and set at £0. Direct long-haul journeys are those where the first leg of the journey is to a destination outside Band A.

Bands (approximate distance in miles from the UK)	Reduced rate (lowest class of travel) from 1 April 2024	Standard rate (other than the lowest class of travel) from 1 April 2024	Higher rate from 1 April 2024
Domestic (flights within the UK)	£7	£14	£78
Band A (0 to 2,000 miles)	£13	£26	£78
Band B (2,001 to 5,500 miles	£88	£194	£581
Band C (over 5,500 miles)	£92	£202	£607

Where a class of travel provides a seat pitch in excess of 1.016 metres (40 inches), the standard rate is the minimum rate that applies.

The higher rate applies to flights on aircraft of 20 tonnes and above, with fewer than 19 seats.

Air Passenger Duty rates for 2025 to 2026

Air Passenger Duty (APD) applies to flights aboard aircraft 5.7 tonnes and above.

Rates for direct long-haul flights from Northern Ireland are devolved and set at £0. Direct long-haul journeys are those where the first leg of the journey is to a destination outside Band A.

Bands (approximate distance in miles from the UK)	Reduced rate (lowest class of travel) from 1 April 2025	Standard rate (other than the lowest class of travel) from 1 April 2025	Higher rate from 1 April 2025
Domestic (flights within the UK)	£7	£14	£84
Band A (0 to 2,000 miles)	£13	£28	£84
Band B (2,001 to 5,500 miles	£90	£216	£647
Band C (over 5,500 miles)	£94	£224	£673

Where a class of travel provides a seat pitch in excess of 1.016 metres (40 inches), the standard rate is the minimum rate that applies.

The higher rate applies to flights on aircraft of 20 tonnes and above, with fewer than 19 seats.

Fuel Duty — pound per litre unless stated

Light oils

	Rates from 23 March 2022 until the end of 22 March 2025
Unleaded petrol	0.5295
Light oil (other than unleaded petrol or aviation gasoline)	0.6267
Aviation gasoline (Avgas)	0.3629
Light oil delivered to an approved person for use as furnace fuel	0.0978

Heavy oils

	Rates from 23 March 2022 until the end of 22 March 2025
Heavy oil (diesel)	0.5295
Marked gas oil	0.1018
Fuel oil	0.0978
Heavy oil other than fuel oil, gas oil or kerosene used as fuel	0.0978
Kerosene for use in an excepted machine (other than for heating)	0.1018

Biofuels

	Rates from 23 March 2022 until the end of 22 March 2025
Bio-ethanol	0.5295
Bio-diesel	0.5295
Bio-diesel for use in an excepted machine	0.1018
Bio-diesel blended with gas oil for use in an excepted machine	0.1018

Road fuel gases

	Rates from 23 March 2022 until the end of 22 March 2025
Liquified petroleum gas (£ per kilogram)	0.2888
Road fuel natural gas including biogas (£ per kilogram)	0.2257

Other fuels

	Rates from 23 March 2022 until the end of 22 March 2025
Aqua-methanol set aside for road use	0.0722

Vehicle Excise Duty (VED) bands and rates for cars first registered on or after 1 April 2017

The changes to VED rates to take effect from 1 April 2022 are set out in the following tables.

Tax year 2022 to 2023

CO2 emissions (g/km)	Standard rate	First year rate
0	0	0
1 to 50	165	10
51 to 75	165	25
76 to 90	165	120
91 to 100	165	150
101 to 110	165	170
111 to 130	165	190
131 to 150	165	230
151 to 170	165	585
171 to 190	165	945
191 to 225	165	1,420
226 to 255	165	2,015
Over 255	165	2,365

Tax year 2023 to 2024

CO2 emissions (g/km)	Standard rate	First year rate
0	0	0
1 to 50	180	10
51 to 75	180	30
76 to 90	180	130
91 to 100	180	165
101 to 110	180	185
111 to 130	180	210
131 to 150	180	255
151 to 170	180	645
171 to 190	180	1,040
191 to 225	180	1,565
226 to 255	180	2,220
Over 255	180	2,605

Tax year 2024 to 2025

CO2 emissions (g/km)	Standard rate	First year rate
0	0	0
1 to 50	190	10
51 to 75	190	30
76 to 90	190	135
91 to 100	190	175
101 to 110	190	195
111 to 130	190	220
131 to 150	190	270
151 to 170	190	680
171 to 190	190	1,095
191 to 225	190	1,650
226 to 255	190	2,340
Over 255	190	2,745

Budget 2018 announced that new diesel vehicles registered after 1 April 2018 that do not meet the real driving emission step 2 (RDE2) standard will be charged a supplement on their first year rate to the effect of moving up by one VED band.

Alternative fuelled vehicles, including hybrids, bioethanol and liquid petroleum gas, pay a standard rate of £180 per annum, and a discounted first year rate that is £10 lower than the equivalent first year rate for diesel cars that meet the RDE2 standard and petrol cars.

Diesel, petrol and alternative fuelled cars with a list price of over £40,000 in the registration year will pay an additional rate of £410 per annum on top of the standard rate, in the second to sixth year since the first registration (known as Expensive Car Supplement (ECS)). However, electric vehicles are exempted from ECS.

Vehicle Excise Duty bands and rates for cars first registered on or after 1 March 2001

Tax year 2022 to 2023

Vehicle Excise Duty band	CO2 emissions (g/km)	Standard rate
A	Up to 100	0
B	101 to 110	20
C	111 to 120	30
D	121 to 130	135
E	131 to 140	165
F	141 to 150	180
G	151 to 165	220
H	166 to 175	265
I	176 to 185	290
J	186 to 200	330
K	201 to 225	360
L	226 to 255	615
M	Over 255	630

Band K includes cars emitting over 225g/km registered before 23 March 2006.

Tax year 2023 to 2024

Vehicle Excise Duty band	CO2 emissions (g/km)	Standard rate
A	Up to 100	0
B	101 to 110	20
C	111 to 120	35
D	121 to 130	150
E	131 to 140	180
F	141 to 150	200
G	151 to 165	240
H	166 to 175	290
I	176 to 185	320
J	186 to 200	365
K	201 to 225	395
L	226 to 255	675
M	Over 255	695

Band K includes cars emitting over 225g/km registered before 23 March 2006.

Tax year 2024 to 2025

Vehicle Excise Duty band	CO2 emissions (g/km)	Standard rate
A	Up to 100	0
B	101 to 110	20
C	111 to 120	35
D	121 to 130	160
E	131 to 140	190
F	141 to 150	210
G	151 to 165	255
H	166 to 175	305
I	176 to 185	335
J	186 to 200	385
K	201 to 225	415
L	226 to 255	710
M	Over 255	735

Band K includes cars emitting over 225g/km registered before 23 March 2006.

Vehicle Excise Duty bands and rates for cars and vans registered before 1 March 2001

Engine size	Tax year 2022 to 2023	Tax year 2023 to 2024	Tax year 2024 to 2025
1549cc and below	180	200	210
Above 1549cc	295	325	345

Vehicle Excise Duty bands and rates for vans registered on or after 1 March 2001

Vehicle registration date	Tax year 2022 to 2023	Tax year 2023 to 2024	Tax year 2024 to 2025
Early Euro 4 and Euro 5 compliant vans	140	140	140
All other vans	290	320	335

Vehicle Excise Duty bands and rates for motorcycles

Engine Size	Tax year 2022 to 2023	Tax year 2023 to 2024	Tax year 2024 to 2025
Not over 150cc	22	24	25
151cc to 400cc	47	52	55
401cc to 600cc	73	80	84
Over 600cc	101	111	117

Vehicle Excise Duty bands and rates for motor tricycles

Engine Size	Tax year 2022 to 2023	Tax year 2023 to 2024	Tax year 2024 to 2025
Not over 150cc	22	24	25
All other tricycles	101	111	117

Vehicle Excise Duty bands and rates for trade licences

Vehicle type	Tax year 2022 to 2023	Tax year 2023 to 2024	Tax year 2024 to 2025
Available for all vehicles	165	165	165
Available only for bicycle sand tricycles (weighing no more than 450kg without a sidecar)	101	111	117

Vehicle Excise Duty bands and rates for articulated vehicles and rigid vehicles without trailers

Vehicle Excuse Duty band (letter and rate number)	12 months	6 months
A0	£165	£90.75
B0	£200	£110
A1	£80	£40
A2	£84	£42
A3	£100	£50
A4	£146	£73
A5	£151	£75.50
B1	£95	£47.50
B2	£105	£52.50
B3	£125	£62.50
C1	£210	£105
C2	£265	£132.50
C3	£289	£144.50
D1	£300	£150
E1	£560	£280
E2	£609	£304.50
F	£690	£345
G	£850	£425

Vehicle Excise Duty (VED) amounts payable for rigid vehicles with trailers (vehicles with road friendly suspension)

Heavy goods vehicle (HGV) axles	Trailer weight category	Total weight of HGV and trailer, not over	VED band (letter) and rate (number)	VED rates — 12 months	VED rates — 6 months
2	4,001kg to 12,000 kg	27,000kg	B(T)1	£230	£115
2	Over 12,000kg	33,000kg	B(T)3	£295	£147.50
2	Over 12,000kg	36,000kg	B(T)6	£401	£200.50
2	Over 12,000kg	38,000kg	B(T)4	£319	£159.50
2	Over 12,000kg	40,000kg	B(T)7	£444	£222
2	4,001kg to 12,000kg	30,000kg	D(T)1	£365	£182.50
2	Over 12,000kg	38,000kg	D(T)4	£430	£215
2	Over 12,000kg	40,000kg	D(T)5	£444	£222
3	4,001kg to 12,000kg	33,000kg	B(T)1	£230	£115
3	Over 12,000kg	38,000kg	B(T)3	£295	£147.50
3	Over 12,000kg	40,000kg	B(T)5	£392	£196
3	Over 12,000kg	44,000kg	B(T)3	£295	£147.50
3	4,001kg to 12,000kg	35,000kg	C(T)1	£305	£152.50
3	Over 12,000kg	38,000kg	C(T)2	£370	£185
3	Over 12,000kg	40,000kg	C(T)3	£392	£196
3	Over 12,000kg	44,000kg	C(T)2	£370	£185
3	4,001kg to 10,000kg	33,000kg	D(T)1	£365	£182.50
3	4,001kg to 10,000kg	36,000kg	D(T)3	£401	£200.50
3	10,001kg to 12,000kg	38,000kg	D(T)1	£365	£182.50
3	Over 12,000kg	44,000kg	D(T)4	£430	£215
4	4,001kg to 12,000kg	35,000kg	B(T)1	£230	£115
4	Over 12,000kg	44,000kg	B(T)3	£295	£147.50
4	4,001kg to 12,000kg	37,000kg	C(T)1	£305	£152.50
4	Over 12,000kg	44,000kg	C(T)2	£370	£185
4	4,001kg to 12,000kg	39,000kg	D(T)1	£365	£182.50
4	Over 12,000kg	44,000kg	D(T)4	£430	£215
4	4,001kg to 12,000kg	44,000kg	E(T)1	£535	£267.50
4	Over 12,000kg	44,000kg	E(T)2	£600	£300

Vehicle Excise Duty amounts payable for rigid vehicles with trailers (vehicles without road friendly suspension)

Heavy goods vehicle (HGV) axles	Trailer weight category	Total weight of HGV and trailer, not over	VED band (letter) and rate (number)	VED rates — 12 months	VED rates — 6 months
2	4,001kg to 12,000 kg	27,000kg	B(T)1	£230	£115
2	Over 12,000kg	31,000kg	B(T)3	£295	£147.50
2	Over 12,000kg	33,000kg	B(T)6	£401	£200.50
2	Over 12,000kg	36,000kg	B(T)10	£609	£304.50
2	Over 12,000kg	38,000kg	B(T)7	£444	£222
2	Over 12,000kg	40,000kg	B(T)9	£604	£302
2	4,001kg to 12,000 kg	30,000kg	D(T)1	£365	£182.50
2	Over 12,000kg	33,000kg	D(T)4	£430	£215
2	Over 12,000kg	36,000kg	D(T)8	£609	£304.50
2	Over 12,000kg	38,000kg	D(T)5	£444	£222
2	Over 12,000kg	40,000kg	D(T)7	£604	£302
3	4,001kg to 10,000kg	29,000kg	B(T)1	£230	£115
3	4,001kg to 10,000kg	31,000kg	B(T)2	£289	£144.50
3	10,001kg to 12,000kg	33,000kg	B(T)1	£230	£115
3	Over 12,000kg	36,000kg	B(T)3	£295	£147.50
3	Over 12,000kg	38,000kg	B(T)5	£392	£196
3	Over 12,000kg	40,000kg	B(T)8	£542	£271
3	4,001kg to 10,000kg	31,000kg	C(T)1	£305	£152.50
3	4,001kg to 10,000kg	33,000kg	C(T)4	£401	£200.5
3	10,001kg to 12,000kg	35,000kg	C(T)1	£305	£152.50
3	Over 12,000kg	36,000kg	C(T)2	£370	£185
3	Over 12,000kg	38,000kg	C(T)3	£392	£196
3	Over 12,000kg	40,000kg	C(T)5	£542	£271
3	4,001kg to 10,000kg	31,000kg	D(T)1	£365	£182.50
3	4,001kg to 10,000kg	33,000kg	D(T)3	£401	£200.50
3	4,001kg to 10,000kg	35,000kg	D(T)8	£609	£304.50
3	10,001kg to 12,000kg	36,000kg	D(T)1	£365	£182.50
3	10,001kg to 12,000kg	37,000kg	D(T)2	£392	£196
3	Over 12,000kg	38,000kg	D(T)4	£430	£215
3	Over 12,000kg	40,000kg	D(T)6	£542	£271
4	4,001kg to 12,000kg	35,000kg	B(T)1	£230	£115
4	Over 12,000kg	40,000kg	B(T)3	£295	£147.50
4	4,001kg to 12,000kg	37,000kg	C(T)1	£305	£152.50
4	Over 12,000kg	40,000kg	C(T)2	£370	£185
4	4,001kg to 10,000kg	36,000kg	D(T)1	£365	£182.50
4	4,001kg to 10,000kg	37,000kg	D(T)5	£444	£222
4	10,001kg to 12,000kg	39,000kg	D(T)1	£365	£182.50
4	Over 12,000kg	40,000kg	D(T)4	£430	£215
4	4,001kg to 10,000kg	38,000kg	E(T)1	£535	£267.5
4	4,001kg to 10,000kg	40,000kg	E(T)3	£604	£302
4	10,001kg to 12,000kg	40,000kg	E(T)1	£535	£267.50

Rigid goods vehicles

The band and rate payable can be calculated by using the following look-up tables.

In the tables, the letter indicates the Vehicle Excise Duty band the vehicle is in, and the number indicates the rate that is payable as part of that band (for example, B2 would refer to Vehicle Excise Duty band B, and rate 2 as determined by the weight and axle configuration of the vehicle).

For vehicles with trailers, the rate paid depends on whether the vehicle has road friendly suspension.

There are separate tables for vehicles with and without road friendly suspension.

Rigid goods vehicle without trailer

Revenue weight of vehicle (kg)	2 axles	3 axles	4 or more axles
3,500kg to 7,500kg	A0	A0	A0
Over 7,500kg to 11,999kg	B0	B0	B0
Over 11,999kg to 14,000kg	B1	B1	B1
Over 14,000kg to 15,000kg	B2	B1	B1
Over 15,000kg to 19,000kg	D1	B1	B1
Over 19,000kg to 21,000kg	D1	B3	B1
Over 21,000kg to 23,000kg	D1	C1	B1
Over 23,000kg to 25,000kg	D1	D1	C1
Over 25,000kg to 27,000kg	D1	D1	D1
Over 27,000kg to 44,000kg	D1	D1	E1

Rigid goods vehicle with trailer

Revenue weight of vehicle (not trailer) (kg)	2-axled rigid	3-axled rigid	4-axled rigid
11,999kg to 15,000kg	B(T)	B(T)	B(T)
Over 15,000kg to 21,000kg	D(T)	B(T)	B(T)
Over 21,000kg to 23,000kg	E(T)	C(T)	B(T)
Over 23,000kg to 25,000kg	E(T)	D(T)	C(T)
Over 25,000kg to 27,000kg	E(T)	D(T)	D(T)
Over 27,000kg to 44,000kg	E(T)	E(T)	E(T)

Articulated vehicles

Articulated vehicles — tractive unit with 3 or more axles

Revenue weight of vehicle (not trailer) (kg)	One or more semi-trailer axles	2 or more semi-trailer axles	3 or more semi-trailer axles
3,500kg to 11,999kg	A0	A0	A0
Over 11,999kg to 25,000kg	A1	A1	A1
Over 25,000kg to 26,000kg	A3	A1	A1
Over 26,000kg to 28,000kg	A4	A1	A1
Over 28,000kg to 29,000kg	C1	A1	A1
Over 29,000kg to 31,000kg	C3	A1	A1
Over 31,000kg to 33,000kg	E1	C1	A1
Over 33,000kg to 34,000kg	E2	D1	A1
Over 34,000kg to 36,000kg	E2	D1	C1
Over 36,000kg to 38,000kg	F	E1	D1
Over 38,000kg to 44,000kg	G	G	E1

Articulated vehicles — tractive unit with 2 axles

Revenue weight of vehicle (not trailer) (kg)	One or more semi-trailer axles	2 or more semi-trailer axles	3 or more semi-trailer axles
3,500kg to 11,999kg	A0	A0	A0
Over 11,999kg to 22,000kg	A1	A1	A1
Over 22,000kg to 23,000kg	A2	A1	A1
Over 23,000kg to 25,000kg	A5	A1	A1
Over 25,000kg to 26,000kg	C2	A3	A1
Over 26,000kg to 28,000kg	C2	A4	A1
Over 28,000kg to 31,000kg	D1	D1	A1
Over 31,000kg to 33,000kg	E1	E1	C1
Over 33,000kg to 34,000kg	E1	E2	C1
Over 34,000kg to 38,000kg	F	F	E1
Over 38,000kg to 44,000kg	G	G	G

Heavy Goods Vehicle (HGV) levy

Following the end of the Heavy Goods Vehicle levy suspension period, the new reformed Heavy Goods Vehicle levy comes into effect from 1 August 2023. The rates are set out in the following table.

Weight category	Newest, cleanest vehicles (EURO VI or later)	Older vehicles (Euro V or earlier)
From 12 tonnes, and up to 31 tonnes	£150	£195
Above 31 tonnes and up to 38 tonnes	£360	£468
Above 38 tonnes	£576	£749

Shorter-term rates are available for foreign vehicles — the daily rate is set at 2% of the annual rate (capped at £9 for Euro VI vehicles and £10 for Euro 0 to V vehicles), and the weekly and monthly rates are 5% and 10% of the annual rate respectively.

VAT

	April 2023 to 2024	April 2024 to 2025
Standard rate	20%	20%
Reduced rate	5%	5%
Zero rate	0%	0%
Exempt	Not applicable	Not applicable

 

VAT registration and deregistration thresholds

	From April 2023	From April 2024
VAT registration thresholds	£85,000	£90,000
VAT deregistration thresholds	£83,000	£88,000
Acquisitions threshold (NI) — registration and deregistration	£85,000	£90,000