Title page
Contents
Summary 5
1. Rates and thresholds 7
1.1. Income tax 7
Income from earnings, pensions, profits 7
Income tax in Scotland 8
Savings and dividend income 8
1.2. National Insurance contributions 9
Class 1 NICs: Employees and employers 9
Class 2 and Class 4 NICs: The self-employed 14
2. Income tax allowances 17
2.1. Personal allowance 17
2.2. Blind person's allowance 18
2.3. Transferable allowance for married couples and civil partners 18
2.4. Threshold increases and freezes 19
2.5. Age-related allowances (withdrawn) 20
2.6. Transitional allowances for older people 21
Married couple's allowance 21
Tax relief for child maintenance payments 22
3. Income tax: Other allowances and reliefs 23
3.1. Company cars and free fuel 23
3.2. Pensions: Annual and lifetime allowances 24
How are private pensions taxed in the UK? 24
What are the limits to pension tax relief? 24
Further information 25
3.3. Charities 25
4. Other direct taxes 27
4.1. Capital gains tax 27
4.2. Inheritance tax 28
5. Main personal income tax rates and allowances since 1990/91 30
Table 1. Main income tax rates and allowances: 1990/91-2024/25 30
Table 2. Age-related allowances: 1990/91 to 2024/25 31