HMRC rates and allowances

¹ The individual’s personal allowance is reduced where their income is above this limit. The allowance is reduced by £1 for every £2 above the limit.

² The inheritance tax threshold is increased to £500,000 where the estate includes a residence passed to direct descendants and the entire estate is worth less than £2 million.

³ If non-savings taxable income exceeds the starting rate limit, the starting savings rate will not apply to savings income.

⁴ For businesses with profits between £50,000 and £250,000, tax is charged at the main rate, subject to marginal relief provisions which will provide a gradual increase in the effective corporation tax rate.

⁵ Stamp duty land tax is charged with a surcharge of 5% above the usual stamp duty land tax residential rates from 31 October 2024 on purchases by individuals of additional residential properties (such as second homes and buy-to-let properties), and by non-natural persons (companies, partnerships including companies or collective investment schemes) of dwellings, even if they do not own another dwelling.

⁶ From 1 April 2025, for purchases by first-time buyers of property worth £500,000 or less, the stamp duty land tax rate for a property valued £0 – 300,000 is 0% and for a property valued £300,001 – £500,000 is 0% on the consideration up to £300,000 and 5% on the remainder.

⁷ The 17% rate applies to certain acquisitions of dwellings worth more than £500,000 by “non-natural persons” (a company, a partnership including a company or a collective investment scheme), though in many cases a relief is available from this flat rate.

⁸ A 2% surcharge applies on purchases by non-UK residents acquiring dwellings in England and Northern Ireland (when combined with the additional 5% rate (see note 5 above), a 7% surcharge applies on non-UK residents purchasing additional residential properties).