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Income tax — Rates

UK Rate of Income Tax

2024/25 2023/24
Tax payer Rate Income Rate Income
Basic 1 20% £12,571 to £50,270 20% £12,571 to £50,270
Higher 2 40% £50,271 to £125,140 40% £50,271 to £125,140
Additional 3 45% Above £125,140 45% Above £125,140

These are the main rates which apply to earnings from employment, self-employment, pensions, foreign income, taxable benefits and income from property. Different rates may apply to unearned income, such as interest on savings and dividend income.

  1. The personal allowance will remain frozen at £12,570 until April 2028.
  2. The higher rate tax threshold will remain frozen at £50,270 until April 2028.
  3. The additional rate threshold will remain frozen until April 2028.

Scottish Rate of Income Tax

Income tax is a partially devolved tax. For non-savings and non-dividend income the Scottish Parliament has the power to set all income tax thresholds, except the personal allowance, as well as the Scottish Rate of Income Tax (SRIT) for Scottish taxpayers.

The income tax rates and bands for Scottish taxpayers are set out below.

Tax payer 2024/25 2023/24
Rate Income Rate Income
Starter 1 19% £12,571 to £14,876 19% £12,571 to £14,732
Basic 20% £14,877 to £26,561 20% £14,733 to £25,688
Intermediate 21% £26,562 to £43,662 21% £25,689 to £43,662
Higher 42% £43,663 to £75,000 42% £43,663 to £125,140
Advanced 45% Above £75,000 N/A N/A
Top 48% Above £125,140 47% Above £125,140
  1. The personal allowance will remain frozen at £12,570 until April 2028.

The definition of a Scottish tax payer is based on where an individual resides not where they work, so if an individual works in England but resides in Scotland the employer is obliged to apply the SRIT. HMRC informs employers when they need to apply the SRIT by issuing a Scottish tax code and appropriate tax tables.

Welsh Rate of Income Tax

As income tax has been partially devolved, the Welsh Assembly has the power to set the Welsh Rate of Income Tax (WRIT) on non-savings, non-dividend income for Welsh taxpayers.

The UK government has reduced the rates of UK income tax paid in Wales by 10% but as the Welsh Assembly has determined that the WRIT will be set at 10% a Welsh taxpayer will continue to pay the same rates of income tax as taxpayers in England and Northern Ireland.

The income tax rates and bands for Welsh taxpayers for 2024/25 are set out below.

UK rate for England & Northern Ireland Taxable income UK rate paid in Wales Welsh rate Total rate for Welsh taxpayers
Basic rate 20% £12,571 to £50,270 10% 10% 20%
Higher rate 40% £50,271 to £125,140 30% 10% 40%
Additional rate 45% Above £125,140 35% 10% 45%

The definition of a Welsh tax payer is based on where an individual resides not where they work, so if an individual works in England but resides in Wales the employer is obliged to apply the WRIT. HMRC informs employers when they need to apply the WRIT by issuing a Welsh tax code and appropriate tax tables.

The UK Treasury will retain control of personal allowances and reliefs, and the taxation of savings and dividend income.