UK Tax Year 2024/2025 breakdown
§ A · England, Wales & Northern Ireland
Income tax bands & thresholds
| Band | Income range | Rate |
|---|---|---|
| Personal Allowance | £0 – £12,570 | 0% |
| Basic rate | £12,570 – £50,270 | 20% |
| Higher rate | £50,270 – £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
§ B · Scotland
Scottish income tax bands
| Band | Income range | Rate |
|---|---|---|
| Personal Allowance | £0 – £12,570 | 0% |
| Starter rate | £12,570 – £14,876 | 19% |
| Basic rate | £14,876 – £26,561 | 20% |
| Intermediate rate | £26,561 – £43,662 | 21% |
| Higher rate | £43,662 – £75,000 | 42% |
| Advanced rate | £75,000 – £125,140 | 45% |
| Top rate | Over £125,140 | 48% |
§ C · Class 1 employee
National Insurance tiers
| Band | Earnings slice | Rate |
|---|---|---|
| Below Primary Threshold | £0 – £12,570 | 0% |
| Main rate (PT → UEL) | £12,570 – £50,270 | 8% |
| Upper rate (above UEL) | Over £50,270 | 2% |
2024/25 — The Introduction of the Scottish Advanced Rate
The 2024/25 fiscal year marked a massive structural divergence in the UK personal tax landscape. While the rest of the UK (England, Wales, and Northern Ireland) saw a continuation of the rigid multi-year threshold freeze enacted under fiscal drag policies, Holyrood radically overhauled Scotland’s tax code.
This year officially introduced the Scottish 45% Advanced Rate, wedged between the Higher and Top rate bounds, transitioning Scotland from a five-band to a comprehensive six-band progressive income tax system.
The National Insurance 8% Landmark
For employees nationwide, 2024/25 delivered a major tax reduction via Class 1 National Insurance Contributions (NICs). Following an initial temporary drop in the preceding months, the Spring Budget permanently locked the primary employee contribution rate down to 8% on earnings between the Primary Threshold (£12,570) and the Upper Earnings Limit (£50,270).
The higher tier contribution rate on earnings exceeding the Upper Earnings Limit remained securely pinned at 2%.
Reduced Financial Exemptions
This fiscal year also applied sharp reductions to investment tax shields across the United Kingdom:
- The Dividend Allowance was halved from £1,000 down to £500. Any dividend payouts above this point were hit with progressive tax brackets relative to the individual’s baseline income band.
- The Capital Gains Tax (CGT) Annual Exempt Amount was slashed from £6,000 down to £3,000 for individual asset transfers.
- The standard Individual Savings Account (ISA) annual subscription capacity remained static at £20,000.
Contextual Routing Record
This route serves as a public audit trail for comparative tax history. The automated data rows rendered on this page are fetched directly from the unified calculation core arrays matching the 2024-2025 key signature. To process real-time optimization calculations or review active workplace pension scenarios for your historic P60 documentation, pass your variables using our main engine interface at SalaryGrid.uk.
Model pensions, student loans and salary sacrifice against this year's bands
The sidebar covers the core PA + IT + NI math. SalaryGrid's full grid layers in workplace pensions, custom tax codes, marriage allowance and the 60% trap optimiser — all running against the 2024/2025 ruleset.