UK COMPANY TAXATION RESEARCH & DEVELOPMENT (R&D) PROPERTY TAXES

Incremental rates of tax are only payable on the part of the property price within each
Financial year from 1 April 2024/25 2023/24 Revenue expenditure – SMEs 86% band. An extra 3% rate (6% in Scotland) applies to purchases of additional residential
property above £40,000 and all corporate residential properties.
Corporation tax main rate 25%* 25%* Capital expenditure – all companies 100%

Loans to participators 33.75% 33.75% SME company R&D payable credit 10%* ■ England & Northern Ireland: Stamp duty land tax (SDLT)
Diverted profits tax 31% 31% R&D expenditure credit (RDEC) 20%**
On transfer of residential On transfer of non-residential
Small profits rate 19% 19% * 14.5% for small companies spending 40% of expenditure on R&D. property* property
** A corporation tax deduction is applied to this.
Lower threshold £50,000 £50,000
£0 – £250,000 0% £0 – £150,000 0%
Upper threshold £250,000 £250,000
*A tapered rate applies to profits falling between £50,000 and £250,000 in 2024/25.
NATIONAL INSURANCE Over £250,000 - £925,000 5% Over £150,000 – £250,000 2%
■ Class 1 Over £925,000 – £1.5m 10% Above £250,000 5%
MAIN CAPITAL ALLOWANCES Employer Above £1.5m 12%
Weekly earnings Employee rate Weekly earnings
rate
■ Initial allowances * First-time buyers pay nothing on the first £425,000 for properties up to £625,000.
Up to £242 Nil* Up to £175 Nil A 5% rate will also apply between £425,000 and £625,000.
Annual investment allowance: on first £1m (excludes cars) 100%
For residential purchases by ‘non-natural persons’ over £500,000 a rate of 15%
Over £242 - £967 8% Over £175 - £967 13.8%**
First-year allowance: special-rate pool 50% applies, subject to certain exclusions.
Over £967 2% Over £967 13.8%
First-year allowance: including new and unused
100% ■ Scotland: Land and buildings transaction tax
electric and zero-emission goods vehicles

Tax Card
Over state Over state
0% 13.8%
pension age pension age On the transfer of residential On the transfer of
Full expensing relief: plant and machinery 100%
* Entitlement to contribution-based benefits are retained for earnings between £123 property* non-residential property
and £242 per week.
■ Writing down allowances ** 0% for staff under 21 and apprentices under 25 on earnings up to £967 a week, or £0 – £145,000 0% £0 – £150,000 0%

2024/2025
for new employees in freeport tax sites on earnings up to £481 a week.
Plant and machinery main-rate expenditure 18% Over £145,000 – £250,000 2% Over £150,000 – £250,000 1%
■ Class 1A
Plant and machinery special-rate expenditure 6% Over £250,000 – £325,000 5% Above £250,000 5%
On relevant benefits, including car and fuel benefits 13.8%
1 – 50g/km 18% Over £325,000 – £750,000 10%
Cars ■ Class 2
More than 50g/km 6% Above £750,000 12%
Self-employed above lower profits limit £0
*First-time buyers pay nothing on the first £175,000.
Structures and buildings allowance – straight line relief 3%*
Lower profits limit Not applicable
*An enhanced structure and buildings allowance of 10% is available in qualifying ■ Wales: Land transaction tax
freeport tax sites. ■ Class 3
On transfer of residential On transfer of non-residential
Voluntary £17.45 a week
VALUE ADDED TAX (VAT) ■ Class 4*
property property

£0 – £225,000 0% £0 – £225,000 0%
Rate VAT fraction From 6 April: Self-employed on profits £12,570-£50,270 6%
Over £225,000 – £400,000 6% Over £225,000 – £250,000 1%
Standard rate 20% 1/6 Over £50,270 2%
Over £400,000 – £750,000 7.5% Over £250,000 – £1m 5%
Reduced rate 5% 1/21 * Exemption applies if the state retirement age is reached by 6 April 2024.

■ Employment Allowance Over £750,000 – £1.5m 10% Above £1m 6% Experience the difference
■ Taxable turnover limits
Above £1.5m 12%
From 1 April 2024 2023 Per employer, per year £5,000*
* One claim only for companies in a group or under common control. Not available ■ Residential property developer tax
Registration (last 12 months or next 30 where the director is the only employee paid earnings above the secondary threshold
£90,000 £85,000
days) over for class 1 NICs. Limited to employers with an employer NICs bill below £100,000 in
the previous tax year.
On annual profits in excess of £25m 4% Highland House, Mayflower Close,
Deregistration (next 12 months) under £88,000 £83,000
■ Apprenticeship Levy
Chandlers Ford, Eastleigh, Hampshire, SO53 4AR
HWB is a trading name of Hopper Williams & Bell Limited.
Annual and cash accounting schemes Registered to carry on audit work in the UK and regulated for a range of T 023 8046 1200
£1.35m £1.35m A levy of 0.5% applies where the pay bill exceeds £3m. There is an
turnover limit investment business activities by the Institute of Chartered Account- E admin@hwb-accountants.com
allowance of £15,000. Further conditions apply, so please consult ants in England & Wales. We have a strategic alliance with a firm of
Flat-rate scheme turnover limit £150,000 £150,000 with us. W www.hwb-accountants.com
Independent Financial Advisers who are authorised and regulated by the
FCA. Personal and financial planning matters will be referred to them.
INCOME TAX ALLOWANCES VEHICLE AND FUEL CAPITAL GAINS TAX (CGT) TAX EFFICIENT INVESTMENTS
2024/25 2023/24 BENEFITS-IN-KIND 2024/25 2023/24 Annual investment limit 2024/25 2023/24
Personal allowance* £12,570 £12,570 The taxable benefit-in-kind is calculated as a percentage of the car’s UK list price.
The percentage depends on the car’s CO2 emissions in grams per kilometre (g/km). Individual basic-rate 10% 10% ISA £20,000 £20,000
Personal • Basic-rate taxpayer £1,000 £1,000
Main rates Individual above basic-rate 20% 20% Lifetime ISA* £4,000 £4,000
savings • Higher-rate taxpayer £500 £500 CO² emissions Electric range Appropriate percentage*
allowance • Additional-rate taxpayer £0 £0 (g/km) (miles) Trusts and estates 20% 20% Help-to-buy ISA (existing savers only) Up to £200 per month
Dividend allowance at 0% £500 £1,000 0 N/A 2% Individuals £3,000 £6,000 Junior ISA and child trust fund £9,000 £9,000
Annual
Marriage/civil partner transferable exemption
£1,260 £1,260 1 - 50 130 and over 2% Trusts £1,500 £3,000 Venture capital trust at 30% £200,000 £200,000
allowance**
1 - 50 70 - 129 5% Applicable rate 10% 10% Enterprise investment scheme at 30%** £1m £1m
Trading and property allowance*** £1,000 £1,000 Business asset
disposal relief
1 - 50 40 - 69 8% Lifetime limit £1m £1m Seed EIS (SEIS) at 50% £200,000 £100,000
Rent-a-room allowance £7,500 £7,500
1 - 50 30 - 39 12% Applicable rate 10% 10% * Reduces ISA limit by amount invested in Lifetime ISA.
Blind person’s allowance £3,070 £2,870 Investors’ relief ** Up to £2m in a knowledge-intensive company.
* The personal allowance is reduced by £1 for each £2 of income from £100,000 to £125,140. 1 - 50 Under 30 14% Lifetime limit £10m £10m
** Any unused personal allowance may be transferred to a spouse or civil partner,
where the recipient is not liable to higher or additional-rate tax. 51 - 54 N/A 15% REGISTERED PENSIONS
*** Landlords and traders with gross income from each of these sources in excess
of £1,000 can deduct the allowance from their gross income as an alternative to Over 54 N/A + 1% for every 5g/km up to 37%
INHERITANCE TAX (IHT)
claiming expenses. 2024/25 2023/24
*Diesel vehicles not meeting the RDE2 standard will be liable to a 4% surcharge, 2024/25 2023/24
INCOME TAX BANDS AND RATES up to a maximum of 37%.
Nil-rate band limit* £325,000 £325,000
Lifetime allowance limit* None £1,073,100

The list price is on the day before first registration, including most accessories, and Money purchase annual allowance £10,000 £10,000
2024/25 2023/24
is reduced by any employee’s capital contribution (max £5,000) when the car is first Main residence nil-rate band** £175,000 £175,000
Starting rate of 0% on made available. Where the cost of all fuel for private use is borne by the employee, Annual allowance limit** £60,000 £60,000
£5,000 £5,000 the fuel benefit is nil. Otherwise, the fuel benefit is calculated by applying the car Combined threshold limit for married
savings up to*:
benefit percentage to the car fuel benefit multiplier (below). Minimum age for accessing benefits 55 55
couples and civil partners, including £1m £1m
Basic-rate band £12,571 to £50,270 £12,571 to £50,270
main residence nil-rate band (RNRB) Maximum tax-free pension lump sum 25% of pension fund value
Company car fuel 2024/25 2023/24
Higher-rate band £50,271 to £125,140 £50,271 to £125,140 Business property relief and 50% or 50% or * The lifetime allowance will end in April 2024 and will be replaced by new allowanc-
Car fuel benefit multiplier £27,800 £27,800 agricultural property relief 100% 100% es. For most people, the lump sum allowance (LSA) will limit the tax-free cash you
Additional-rate band Above £125,140 Above £125,140 can get from your pension to £268,275. The lump sum and death benefit allowance
* Up to 100% of any unused part of a deceased person’s nil-rate band can be claimed (LSDBA) will limit the total amount of tax-free cash you can get in your lifetime and
Company vans* 2024/25 2023/24 by the surviving spouse/civil partner on their death. This also applies to the main
Basic-rate 20% 20% when you die to £1,073,100, in most cases. An overseas transfer allowance (OTA) will
residence nil-rate band, albeit the main residence nil-rate is subject to the taper also apply if you transfer your pension abroad.
Higher-rate 40% 40% Van benefit charge £3,960 £3,960 withdrawal below.
** For estates in excess of £2m the RNRB is reduced by £1 for every £2 of value by ** Tapered at a rate of 50% of excess income down to £10,000 if threshold income
Additional-rate 45% 45% Van fuel benefit charge £757 £757 which the estate exceeds the taper threshold. over £200,000 and adjusted income over £260,000. Restrictions can apply based on
Dividend basic-rate 8.75% 8.75% *Applies where private use is more than home-to-work travel. Payments by net-relevant earnings. For 2022/23 it would be tapered to a minimum of £4,000.
employees for private use may reduce these benefits-in-kind. Zero-emission vans ■ Tax rates
Dividend higher-rate 33.75% 33.75% have a benefit value of £0. Subject to certain conditions, the unused amount of the annual allowance can be
2024/25 2023/24 carried forward up to three years and used once the current year annual allowance
Dividend additional-rate 39.35% 39.35% has been fully utilised.
* The starting rate does not apply if non-savings taxable income exceeds the starting rate
limit. Every £1 of other income above the personal allowance reduces the starting rate ‘band’
TAX-FREE MILEAGE ALLOWANCES Main rate 40% 40%
by £1.
First 10,000 business miles 45p
Chargeable on lifetime transfers 20% 20% STAMP DUTY
■ Income tax in Scotland Cars and vans incl.
electric vehicles Transfers on or within 7 years of death* 40% 40%
2024/25 2023/24 Thereafter 25p Consideration on shares over £1,000 0.5%

Band Taxable income Rate Taxable income Rate Reduced rate** 36% 36%
Motorcycles 24p
* All lifetime transfers not covered by exemptions and made within seven years IMPORTANT NOTICE
Starter* £12,571 – £14,876 19% £12,571 – £14,732 19%
Bicycles 20p of death will be added back into the estate for the purposes of calculating the tax
Basic £14,877 – £26,561 20% £14,733 – £25,688 20% payable. This may then be reduced as shown in the table below. These rates and allowances are based on fiscal Statement and Budget
Business passenger 5p ** Applies if 10% or more of net chargeable estate is left to certain registered announcements made by the UK and Northern Ireland, Scottish and Welsh
Intermediate £26,562 – £43,662 21% £25,689 – £43,662 21% charities. Governments and are for information only.
The tax-free business mileage allowance rates apply for qualifying business journeys
Higher £43,663 – £75,000 42% £43,663 – £125,140 42%
incurred by employees using their own vehicles over the course of the tax year. Years before death 0–3 3–4 4–5 5–6 6–7 All information is subject to change and confirmation by the respective governments.
Advanced** £75,001 - £125,140 45% N/A N/A The above must not be considered advice and no warranty is given for the accuracy
For National Insurance purposes, a 45p rate might apply for all business miles Tax reduced by 0% 20% 40% 60% 80% or completeness of the details. Professional advice should be sought before making
Top** Above £125,140 48% Above £125,140 47% incurred by cars and vans. any decisions.
* Assumes individual is in receipt of a personal allowance.
** The personal allowance is reduced by £1 for each £2 of income from £100,000 to £125,140. Rates apply to the UK and Northern Ireland unless stated otherwise.