Personal tax and benefits
Income Tax bands of taxable income (£ per year)
Tax year 2022 to 2023
Tax year 2023 to 2024
Basic rate
£1 to £37,700
£1 to £37,700
Higher rate
£37,701 to £150,000
£37,701 to £125,140
Additional rate
Over £150,000
Over £125,140
Income tax rates
Main rates
Tax year 2022 to 2023
Tax year 2023 to 2024
Basic rate
20%
20%
Higher rate
40%
40%
Additional rate
45%
45%
These figures apply to non-dividend income, including income from savings, employment, property or pensions. From 2017 to 2018, the main rates were separated into the main rates, the savings rates and the default rates.
Savings rates
Savings rates
Tax year 2022 to 2023
Tax year 2023 to 2024
Starting rate for savings
0%
0%
Savings basic rate
20%
20%
Savings higher rate
40%
40%
Savings additional rate
45%
45%
These figures apply to savings income.
Dividend rates
Tax year 2022 to 2023
Tax year 2023 to 2024
Basic rate
8.75%
8.75%
Higher rate
33.75%
33.75%
Additional rate
39.35%
39.35%
These figures apply to dividend income received above the tax-free dividend allowance.
Default rates
Tax year 2022 to 2023
Tax year 2023 to 2024
Default basic rate
20%
20%
Default higher rate
40%
40%
Default additional rate
45%
45%
These figures apply to non-savings and non-dividend income of any taxpayer that is not subject to either the main rates or the Scottish rates of Income Tax.
Starting rates for savings income
Tax year 2022 to 2023
Tax year 2023 to 2024
Starting rate for savings
0%
0%
Starting rate limit for savings
£5,000
£5,000
Special rates for trustees’ income
Tax year 2022 to 2023
Tax year 2023 to 2024
Standard rate on first £1,000 of income which would otherwise be taxable at the special rates for trustees
Up to 20%, depends on the type of income
Up to 20%, depends on the type of income
Trust rate
45%
45%
Dividend trust rate
39.35%
39.35%
Income Tax allowances
Personal Allowance
Tax year 2022 to 2023
Tax year 2023 to 2024
Personal Allowance
£12,570
£12,570
Income limit for Personal Allowance
£100,000
£100,000
Income limit for Married Couple’s Allowance
£31,400
£34,600
The Personal Allowance reduces where the income is above £100,000 — by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of date of birth.
The income limit for Married Couple’s Allowance is an age-related allowance. It is reduced by £1 for every £2 of income over this limit.
Marriage Allowance
Tax year 2022 to 2023
Tax year 2023 to 2024
Marriage Allowance
£1,260
£1,260
This transferable allowance is available to married couples and civil partners who are not in receipt of married couple’s allowance. A spouse or civil partner who is not liable to Income Tax, or not liable at the higher or additional rates, can transfer this amount of their unused personal allowance to their spouse or civil partner. The recipient must not be liable to Income Tax at the higher or additional rates.
Married Couple’s Allowance for those born before 6 April 1935
Tax year 2022 to 2023
Tax year 2023 to 2024
Maximum amount of Married Couple’s Allowance
£9,415
£10,375
Minimum amount of Married Couple’s Allowance
£3,640
£4,010
The relief for this allowance is given at 10%.
Blind Person’s Allowance
Tax year 2022 to 2023
Tax year 2023 to 2024
Blind Person’s Allowance
£2,600
£2,870
Dividend Allowance
Tax year 2022 to 2023
Tax year 2023 to 2024
Dividend Allowance
£2,000
£1,000
Personal Savings Allowance
Tax year 2022 to 2023
Tax year 2023 to 2024
Personal Savings Allowance for basic rate taxpayers
£1,000
£1,000
Personal Savings Allowance for higher rate taxpayers
£500
£500
From April 2016, the new Personal Savings Allowance means that basic rate taxpayers do not have to pay tax on the first £1,000 of savings income they receive and higher rate taxpayers do not have tax to pay on their first £500 of savings income.
Company car tax — all cars
CO2 emissions, g/km
Electric range (miles)
Appropriate percentage (%) for 2022 to 2023
Appropriate percentage (%) for 2023 to 2024
Appropriate percentage (%) for 2024 to 2025
Appropriate percentage (%) for 2025 to 2026
Appropriate percentage (%) for 2026 to 2027
Appropriate percentage (%) for 2027 to 2028
0
Not applicable
2
2
2
3
4
5
1 to 50
More than 130
2
2
2
3
4
5
1 to 50
70 to 129
5
5
5
6
7
8
1 to 50
40 to 69
8
8
8
9
10
11
1 to 50
30 to 39
12
12
12
9
10
11
1 to 50
Less than 30
14
14
14
15
16
17
51 to 54
–
15
15
15
16
17
18
55 to 59
–
16
16
16
17
18
19
60 to 64
–
17
17
17
18
19
20
65 to 69
–
18
18
18
19
20
21
70 to 74
–
19
19
19
20
21
21
75 to 79
–
20
20
20
21
21
21
80 to 84
–
21
21
21
22
22
22
85 to 89
–
22
22
22
23
23
23
90 to 94
–
23
23
23
24
24
24
95 to 99
–
24
24
24
25
25
25
100 to 104
–
25
25
25
26
26
26
105 to 109
–
26
26
26
27
27
27
110 to 114
–
27
27
27
28
28
28
115 to 119
–
28
28
28
29
29
29
120 to 124
–
29
29
29
30
30
30
125 to 129
–
30
30
30
31
31
31
130 to 134
–
31
31
31
32
32
32
135 to 139
–
32
32
32
33
33
33
140 to 144
–
33
33
33
34
34
34
145 to 149
–
34
34
34
35
35
35
150 to 154
–
35
35
35
36
36
36
155 to 159
–
36
36
36
37
37
37
160 and over
–
37
37
37
37
37
37
For all cars, drivers must add 4% to their appropriate percentage if the car is propelled solely by diesel (up to a maximum of 37%). Cars that meet the Real Driving Emissions Step 2 (RDE2) standard are exempt from the diesel supplement. The RDE2 standard sets a maximum permitted level of car NOx emissions in real world driving situations, and it is measured through portable emissions-measuring equipment in a variety of real driving trips. Rates for fully electric cars (0 grams per km) are capped at 5%.
Rates for ultra-low emission cars (1 to 74 grams per km) are capped at 20% for the tax year 2025 to 2026. They are capped at 21% for the tax years 2026 to 2027 and 2027 to 2028. Rates for bands 75 to 170 grams per km and above will remain frozen for the 2026 to 2027 and 2027 to 2028 tax years.
National Insurance contributions
Employee and employer Class 1 contributions rates and thresholds (£ per week)
Tax year 2022 to 2023
Tax year 2023 to 2024
Weekly Lower Earnings Limit (LEL)
£123
£123
Weekly Primary Threshold (PT)
£242
£242
Weekly Secondary Threshold (ST)
£175
£175
Upper Earnings Limit (UEL)
£967
£967
Upper Secondary Threshold for under 21s
£967
£967
Apprentice Upper Secondary Threshold (AUST) for under 25s
£967
£967
Freeport Upper Secondary Threshold (FUST)
£481
£481
Investment Zones Upper Secondary Threshold (IZUST)
Not applicable
£481
Veteran Upper Secondary Threshold (VUST)
£967
£967
Employment Allowance (per employer)
£5,000 per year
£5,000 per year
From 6 April 2022 to 5 November 2022, the main and additional rates of Class 1 National Insurance contributions (except for the 0% bands) included a 1.25 percentage point increase due to the Health and Social Care Levy.
The National Insurance contributions Primary Threshold was set at £190 per week between 6 April to 5 July 2022, then increased to £242 per week in line with the announcement made at Spring Statement 2022 to align the National Insurance contributions Primary Threshold and Lower Profits Limit with the Personal Allowance for Income Tax.
Employee’s (primary) Class 1 contribution rates
Earnings band
Tax year 2022 to 2023
Tax year 2023 to 2024
Below Weekly Lower Earnings Limit (LEL)
Not applicable
Not applicable
Weekly Lower Earnings Limit (LEL) to Weekly Primary Threshold (PT)
0%
0%
Weekly Primary Threshold (PT) to Upper Earnings Limit (UEL)
12%
12%
Above Upper Earnings Limit (UEL)
2%
2%
Married woman’s reduced rate for (primary) Class 1 contribution rates
Tax year 2022 to 2023
Tax year 2023 to 2024
Weekly earnings from between the Primary Threshold (PT) and Upper Earnings Limit (UEL)
5.85
5.85
Weekly earnings above the Upper Earnings Limit (UEL)
2%
2%
Employer’s (secondary) Class 1 contribution rates
Earnings band
Tax year 2022 to 2023
Tax year 2023 to 2024
Below Secondary Threshold (ST)
0%
0%
Above Secondary Threshold (ST)
13.8%
13.8%
Employer’s (secondary) Class 1 contribution rates for employees under 21
Earnings band
Tax year 2022 to 2023
Tax year 2023 to 2024
Below Upper Secondary Threshold (ST)
0%
0%
Above Upper Secondary Threshold (ST)
13.8%
13.8%
Employer’s (secondary) Class 1 contribution rates for Apprentices under 25
Earnings band
Tax year 2022 to 2023
Tax year 2023 to 2024
Below Apprentice Upper Secondary Threshold (AUST)
0%
0%
Above Apprentice Upper Secondary Threshold (AUST)
13.8%
13.8%
Employer’s (secondary) Class 1 contribution rates for eligible employees of Freeports
Earnings band
Tax year 2022 to 2023
Tax year 2023 to 2024
Below Freeports Upper Secondary Threshold (FUST)
0%
0%
Above Freeports Upper Secondary Threshold (FUST)
13.8%
13.8%
Employer’s (secondary) Class 1 contribution rates for eligible employees of Investment Zones
Earnings band
Tax year 2022 to 2023
Tax year 2023 to 2024
Below Investment Zone Upper Secondary Threshold (IZUST)
Not applicable
0%
Above Investment Zone Upper Secondary Threshold (IZUST)
Not applicable
13.8%
Employer’s (secondary) Class 1 contribution rates for qualifying veterans
Earnings band
Tax year 2022 to 2023
Tax year 2023 to 2024
Below Veterans Upper Secondary Threshold (VUST)
0%
0%
Above Veterans Upper Secondary Threshold (VUST)
13.8%
13.8%
Class 2 National Insurance contributions: Self-employed rates and thresholds (£ per week)
Earnings band
Tax year 2022 to 2023
Tax year 2023 to 2024
Small Profits Threshold (SPT)
£6,725
£6,725
Lower Profits Threshold (LPT)
£11,908
£12,570
At Spring Statement 2022, it was announced that self-employed individuals earning between the Small Profits Threshold and the Lower Profits Limit would not pay Class 2 National Insurance contributions while continuing to build up entitlement to contributory benefits. The new level at which Class 2 National Insurance contributions is paid is the Lower Profits Threshold. This was set at £11,908 in 2022 to 2023 to align with the Lower Profits Limit, and along with the Lower Profits Limit will increase to £12,570 for 2023 to 2024.
Class 2 contribution rates (£ per week)
Annual profits band
Tax year 2022 to 2023
Tax year 2023 to 2024
Below Small Profits Threshold (SPT)
£3.15 (voluntary)
£3.45 (voluntary)
Small Profits Threshold (SPT) to Lower Profits Threshold (LPT)
0%
0%
Above Lower Profits Threshold (LPT)
£3.15
£3.45
Special Class 2 rate for share fishermen
£3.80
£4.10
Special Class 2 rate for volunteer development workers
£6.15
£6.15
Class 3 NICs: Other rates and thresholds (£ per week)
Tax year 2022 to 2023
Tax year 2023 to 2024
Voluntary contributions
£15.85
£17.45
Class 4 NICs : Self-employed rates and thresholds (£ per year)
Tax year 2022 to 2023
Tax year 2023 to 2024
Lower Profits Limit (LPL)
£11,908
£12,570
Upper Profits Limit (UPL)
£50,270
£50,270
The main and additional rates of Class 4 National Insurance contributions are assessed on an annual basis, therefore an average rate was applied to ensure consistency and fairness with Class 1 National Insurance contributions payers who paid the increased NICs rate between 6 April 2022 and 5 November 2022.
Self-employed National Insurance contributions are calculated on an annual basis, therefore, the Lower Profits Limit was set at an average threshold of £11,908 for the 2022 to 2023 tax year which is equivalent to 13 weeks of the threshold at £9,880 and 39 weeks at £12,570, reflecting the position for employees.
Class 4 contribution rates
Annual profits band
Tax year 2022 to 2023
Tax year 2023 to 2024
Below Lower Profits Limit (LPL)
0%
0%
Lower Profits Limit (LPL) to Upper Profits Limit (UPL)
9.73%
9%
Above Upper Profits Limit (UPL)
2.73%
2%
Tax credits, Child Benefit and Guardian’s Allowance
Following the publication of Consumer Prices Index figures for September 2022, the government announced at Autumn Statement 2022 the new benefits rates for 2023 to 2024.
Working Tax Credit (£ per year unless stated)
Tax year 2023 to 2024
Basic element
£2,280
Couple and lone parent element
£2,340
30 hour element
£950
Disabled worker element
£3,685
Severe disability element
£1,595
Childcare element of Working Tax Credit (£ per year unless stated)
Tax year 2023 to 2024
Maximum eligible cost for one child
£175 per week
Maximum eligible cost for two or more children
£300 per week
Percentage of eligible costs covered
70%
Child Tax Credit (£ per year unless stated)
Tax year 2023 to 2024
Family element
£545
Child element
£3,235
Disabled child element
£3,905
Severely disabled child element
£1,575
Income threshold
£7,455
Withdrawal rate (per cent)
41%
First threshold for those entitled to Child Tax Credit only
£18,725
Income rise disregard
£2,500
Income fall disregard
£2,500
Child Benefit per week
Tax year 2023 to 2024
Eldest or only child
£24
Older children
£15.90
Guardian’s Allowance per week
Tax year 2023 to 2024
Guardian’s Allowance
£20.40
Capital, assets and property
Pensions tax relief
Tax year 2022 to 2023
Tax year 2023 to 2024
Lifetime Allowance limit
£1,073,100
No Lifetime Allowance charge
Annual Allowance limit
£40,000
£60,000
Money Purchase Annual Allowance
£4,000
£10,000
Tapered Annual Allowance (applies when an individual has ‘adjusted income’ over this amount provided the ‘threshold income’ test is met)
£240,000
£260,000
For 2023 to 2024, no Lifetime Allowance charge will arise, but the Lifetime Allowance legislation will remain on the statute until Finance Act 2024.
Tax free savings accounts
Tax year 2022 to 2023
Tax year 2023 to 2024
Individual Savings Account (ISA) subscription limit
£20,000
£20,000
Junior ISA subscription limit
£9,000
£9,000
Child Trust Fund (CTF) subscription limit
£9,000
£9,000
Capital Gains Tax
Main rates for individuals other than gains on residential property (not eligible for Private Residence Relief) and carried interest
Tax year 2022 to 2023
Tax year 2023 to 2024
Income Tax basic rate payer
10%
10%
Income Tax higher rate payer
20%
20%
Rates for individuals (for gains on residential property not eligible for Private Residence Relief, and carried interest)
Tax year 2022 to 2023
Tax year 2023 to 2024
Income Tax basic rate payer
18%
18%
Income Tax higher rate payer
28%
28%
Main rate for trustees and personal representatives other than gains on residential property (not eligible for Private Residence Relief) and carried interest
Tax year 2022 to 2023
Tax year 2023 to 2024
20%
20%
Rate for trustees and personal representatives (for gains on residential property not eligible for Private Residence Relief)
Tax year 2022 to 2023
Tax year 2023 to 2024
28%
28%
Rate for personal representatives for gains on carried interest
Tax year 2022 to 2023
Tax year 2023 to 2024
28%
28%
Annual exempt amount (AEA) for individuals and personal representatives
Tax year 2022 to 2023
Tax year 2023 to 2024
£12,300
£6,000
Annual exempt amount for most trustees
Tax year 2022 to 2023
Tax year 2023 to 2024
£6,150
£3,000
Rate on gains subject to business asset disposal relief
Tax year 2022 to 2023
Tax year 2023 to 2024
10%
10%
Rate on gains subject to investors’ relief
Tax year 2022 to 2023
Tax year 2023 to 2024
10%
10%
Business asset disposal relief: lifetime limit on qualifying gains
Tax year 2022 to 2023
Tax year 2023 to 2024
£1 million
£1 million
Investors’ relief: lifetime limit on gains for external investors
Tax year 2022 to 2023
Tax year 2023 to 2024
£10 million
£10 million
Inheritance Tax
Tax year 2022 to 2023
Tax year 2023 to 2024
Rate (for estates)
40%
40%
Reduced rate (for estates leaving 10% or more to charity)
36%
36%
Rate (for chargeable lifetime transfers)
20%
20%
Nil-rate band limit
£325,000
£325,000
Residence nil-rate band limit
£175,000
£175,000
Taper threshold for residence nil-rate band
£2 million
£2 million
Stamp Duty Land Tax (SDLT) — residential property from 23 September 2022 to 31 March 2025
Property value
Rate (on portion of value above threshold)
Rate (on portion of value above threshold) if purchase is of an additional residential property
Rate (on portion of value above threshold) on or after 1st April 2021 if purchase is of residential property by certain non-UK residents
Rate (on portion of value above threshold) on or after 1st April 2021 if purchase is of an additional residential property and by certain non-UK residents
0 to £250,000
0%
3%
2%
5%
£250,000 to £925,000
5%
8%
7%
10%
£925,000 to £1.5 million
10%
13%
12%
15%
Over £1.5 million
12%
15%
14%
17%
Check GOV.UK for more information about whether:
the higher rate applies if a purchase is of an additional residential property
a purchase is a non-resident transaction
Stamp Duty Land Tax — rates for first-time buyers purchasing properties worth £625,000 or less from 23 September 2022 to 31 March 2025
Property value
Rate (on portion of value above threshold) if purchase qualifies for first-time buyer relief
£0 to £425,000
0%
£425,000 to £625,000
5%
Above £625,000
Standard rates above apply
Stamp Duty Land Tax — non-residential property
Purchase and Premium Transactions
Property Value
Rate on or after 17 March 2016 (on portion of value above threshold)
£0 to £150,000
0%
£150,000 to £250,000
2%
Over £250,000
5%
Net Present Value (NPV) of the Lease
Rate on or after 17 March 2016 (on portion of value above threshold)
£0 to £150,000
0%
£150,000 to £5 million
1%
£5 million
2%
Annual Tax on Enveloped Dwellings (ATED)
The ATED charges increase automatically each year in line with inflation (based on the previous September’s Consumer Price Index).
The ATED annual charges will rise by 10.1% from 1 April 2023 in line with the September 2022 Consumer Price Index. A Tax information and impact note has not been published for this measure as it is a routine legislative change. This table shows the property value band and what the revised charges will be for the 2023 to 2024 chargeable period.
Taxable value of the property
Charge for tax year 2022 to 2023
Charge for tax year 2023 to 2024
£500,001 to £1 million
£3,800
£4,150
£1,000,001 to £2 million
£7,700
£8,450
£2,000,001 to £5 million
£26,050
£28,650
£5,000,001 to £10 million
£60,900
£67,050
£10,000,001 to £20 million
£122,250
£134,550
£20,000,001 and over
£244,750
£269,450
Stamp Tax on shares
No Stamp Duty is charged where the certified consideration is less than £1,000.
Stamp Duty is charged on the purchase of own shares by a company under section 690 Companies Act 2006. The SH03 form is the chargeable instrument.
Where an instrument transfers either Intellectual Property (IP) or goodwill and shares, Stamp Duty is not chargeable on the consideration that relates to the Intellectual Property or goodwill. A just and reasonable apportionment must be made.
Where an instrument grants a call option, and is itself a marketable security, Stamp Duty is charged at 0.5% of the consideration given for the premium.
Transfers of, and agreements to transfer securities
Standard Rate
Higher Rate
Stamp Duty
0.5% (rounded up to next £5)
Not applicable
Stamp Duty Reserve Tax
0.5%
Not applicable
Issue of securities to clearance services and depositary receipt issuers
Standard Rate
Higher Rate
Stamp Duty
Not applicable
Not applicable
Stamp Duty Reserve Tax
Not applicable
1.5%
Following EU and UK court decisions in 2009 and 2012, HMRC will not seek to collect the 1.5% charge on issues and certain transfers integral to capital raising. Some clearance services choose to elect into the standard 0.5% Stamp Taxes on Shares regime. No 1.5% charge arises on issues or transfers to such clearance services.
Transfers of securities to clearance services and depositary receipt issuers
Standard Rate
Higher Rate
Stamp Duty
Not applicable
1.5% (rounded up to next £5)
Stamp Duty Reserve Tax
Not applicable
1.5%
Rates for transfers on sale of interests in partnerships which hold shares and certain other securities
The Stamp Duty charge is capped at 0.5% of the market value of any shares held by the partnership (less any loans secured on them), multiplied by the percentage partnership interest transferred.
Bearer instruments
Transaction
Stamp Duty
Stamp Duty Reserve Tax
Issue of bearer instrument
1.5% of market value
Not applicable
Transfer of bearer instrument
1.5% (if no duty charged on issue)
0.5%
Transfer of non-UK bearer instrument by usage
0.2% of market value
Not applicable
Transfer of deposit certificate for stock of single non-UK company
0.2% of market value
Not applicable
Following EU and UK court decisions in 2009 and 2012, HMRC will not seek to collect the 1.5% charge on issues. In addition, in 2015 the Companies Act 2006 was amended to prohibit the creation of bearer shares by UK companies, and all existing bearer shares had to be cancelled or converted into registered shares. Therefore, the charge remains only on the transfer on sale of bearer shares issued by or on behalf of non-UK companies, if the transfer occurs in the UK. It may also apply on the transfer of certain bearer debt securities.
Stamp Duty on legacy land transactions
Where an agreement for a land transaction was entered into on or before 10 July 2003, but the instrument legally completing that contract is executed after that date, then the transaction will be subject to Stamp Duty, not Stamp Duty Land Tax. However, if the contract was not substantially performed before 10 July 2003 and has been varied, or rights under it have been assigned or sub-sold after 10 July 2003, Stamp Duty Land Tax may apply on completion.
If an instrument was executed to complete a land transaction at the time of the original transfer (but is only now being presented to HMRC), then the rate in force at that time will apply.
For rates before 28 March 2000, see the Stamp Taxes Manual, Appendix C, pages 324 to 334 on the National Archives.
Freehold conveyances and transfers for instruments legally completing contracts made on or after 3 July 1997
Certified transfer value
Instruments executed between 28 March 2000 and 16 March 2005
Instruments executed between 17 March 2005 and 22 March 2006
Instruments executed after 22 March 2006
£60,000 and under
nil
nil
nil
£120,000 and under
1%
nil
nil
£125,000 and under
1%
1%
nil
£250,000 and under
1%
1%
1%
£500,000 and under
3%
3%
3%
Over £500,000 or uncertified
4%
4%
4%
For instruments legally completing contracts made on or before 2 July 1997, the rate is 1%. The Stamp Duty is rounded to the next £5. No duty is charged on instruments containing a certified transfer value of £30,000 and under.
Leasehold property: average rent of lease
The rates in this table are based on the average rent of the lease.
Stamp Duty rates: leasehold — average rent
Term of lease
Rate
7 years or less — annual rent £5,000 or less
nil
7 years or less — annual rent more than £5,000
1%
7 to 35 years
2%
35 to 100 years
12%
Over 100 years
24%
Leasehold property: lease premium
These rates are based on the certified value in the transfer document.
Stamp Duty rates: leasehold — on lease premium
Certified value Rate
Rate
£60,000 annual rent £600 or less
nil
£250,000
1%
£500,000
3%
More than £500,000
4%
Residential Property Developer Tax
Rate from 1 April 2022 onwards
UK annual allowance
4%
£25 million
Business and financial services
Corporation tax rates
Financial year 2022 to 2023
Financial year 2023 to 2024
Financial year 2024 to 2025
Main rate
19%
25%
25%
Small profits rate
Not applicable
19%
19%
Lower threshold
Not applicable
£50,000
£50,000
Upper threshold
Not applicable
£250,000
£250,000
Marginal relief standard fraction
Not applicable
3/200ths
3/200ths
North Sea oil and gas ring fence profits rates
see footnote
see footnote
see footnote
For North Sea oil and gas ring fence profits the main rate is 30% and the small profits rate is 19%. The marginal relief ring fence fraction is 11/400ths. From April 2023 the marginal relief ring fence fraction will remain 11/400ths and the lower and upper limits for ring fence profits will change from £300,000 and £1,500,000 respectively to align with the non-ring fence thresholds.
Marginal relief is available for companies with profits between £50,000 and £250,00. Find out how to calculate marginal relief.
Corporation tax allowances and reliefs
Financial year 2022 to 2023
Financial year 2023 to 2024
Plant and machinery: main rate expenditure
18%
18%
Plant and machinery: special rate expenditure
6%
6%
Structures and Buildings Allowance (SBA)
3%
3%
Annual investment allowance (AIA)
£1 million
£1 million
Enhanced Capital Allowances in Freeports
100%
100%
Enhanced Capital Allowances in Investment Zones
Not applicable
100%
Enhanced Structures and Buildings Allowance in Freeports
10%
10%
Enhanced Structures and Buildings Allowance in Investment Zones
Not applicable
10%
Full Expensing: Super-deduction
130%
–
Full Expensing: Special Rate FYA
50%
50%
Full Expensing: 100% First Year Allowance
Not applicable
100%
R&D (Research and Development) tax credits SME scheme
230%
186%
R&D SME payable credit
14.5%
10%
R&D Intensive SME payable credit
Not applicable
14.5%
R&D Expenditure Credit
13%
20%
Patent Box
10%
10%
Film tax relief
25%
25% (34% from 1 January 2024)
High-end TV tax relief
25%
25% (34% from 1 January 2024)
Videogames tax relief
25%
25% (34% from 1 January 2024)
Animation tax relief
25%
25% (39% from 1 January 2024)
Children’s TV tax relief
25%
25% (39% from 1 January 2024)
Open ended investment companies and authorised unit trusts
20%
20%
For open ended investment companies and authorised unit trusts the applicable corporation tax rate is 20%.
From 1 January 2024 an Audio Visual Expenditure Credit and a Video Games Expenditure Credit will be implemented. The Video Games Expenditure Credit will have a rate of 34%. Under the Audio-Visual Expenditure Credit, film and high end TV will be eligible for a rate of 34% and animation and children’s TV will be eligible for a rate of 39%.
Cultural corporation tax allowances and reliefs
Financial year 2021 to 2022 (before 27 October 2021)
Financial year 2021 to 2022 (after 27 October 2021)
Financial year 2022 to 2023
Financial year 2023 to 2024
Museums and Galleries Exhibition Tax Relief
20% or 25%
45% or 50%
45% or 50%
45% or 50%
Theatre Tax Relief
20% or 25%
45% or 50%
45% or 50%
45% or 50%
Orchestra Tax Relief
25%
50%
50%
50%
Two rates of reliefs are provided for both Theatre Tax Relief and for Museums and Galleries Exhibition Tax Relief. The lower rate is for non-touring productions and the higher rate is for touring productions.
Pillar 2 Global Minimum Tax
Groups with consolidated annual revenue of €750 million or more are liable to top-up tax when their foreign operations (Multinational Top-up Tax) and UK operations (Domestic Top-up Tax) have an effective tax rate of less than 15%.
For accounting periods beginning on or after 31 December 2023
Multinational Top-up Tax — Effective Tax Rate
15%
Domestic Top-up Tax — Effective Tax Rate
15%
Bank levy
Chargeable equity and long-term chargeable liabilities
Short-term chargeable liabilities
1 January 2011 to 28 February 2011
0.025%
0.05%
1 March 2011 to 30 April 2011
0.05%
0.1%
1 May 2011 to 31 December 2011
0.0375%
0.075%
1 January 2012 to 31 December 2012
0.044%
0.088%
1 January 2013 to 31 December 2013
0.065%
0.130%
1 January 2014 to 31 March 2015
0.078%
0.156%
1 April 2015 to 31 December 2015
0.105%
0.21%
1 January 2016 to 31 December 2016
0.09%
0.18%
1 January 2017 to 31 December 2017
0.085%
0.17%
1 January 2018 to 31 December 2018
0.08%
0.16%
1 January 2019 to 31 December 2019
0.075%
0.15%
1 January 2020 to 31 December 2020
0.07%
0.14%
1 January 2021 onwards
0.05%
0.1%
Bank Surcharge
Rate on profits
Group allowance
January 2016 to April 2023
8%
£25 million
April 2023 onwards
3%
£100 million
The timing of the amendment to the rate of the surcharge on banking companies to 3% aligns with the change to the main rate of Corporation Tax to 25%. From April 2023, the combined rate of tax on profits for banking companies will be 28%, up from 27% currently.
Diverted Profits Tax
Financial year 2022 to 2023
Financial year 2023 to 2024
Financial year 2024 to 2025
25%
31%
31%
Digital Services Tax
1 April 2020 onwards
Global revenue threshold
UK revenue threshold
UK revenue allowance
2%
£500 million
£25 million
£25 million
Economic Crime (Anti-Money Laundering) Levy
Entity or payee size
UK revenue threshold
Fee in year 2: 1 April 2023 to 31 March 2024 (first year the levy is paid)
Fee in year 3: 1 April 2024 to 31 March 2025
Fee in year 4: 1 April 2025 to 31 March 2026
Small
Under £10.2 million
Not applicable (exempt)
Not applicable (exempt)
Not applicable (exempt)
Medium
£10.2 million to £36 million
£10,000
see footnote
see footnote
Large
£36 million to £1 billion
£36,000
see footnote
see footnote
Very large
Over £1 billion
£250,000
see footnote
see footnote
Fee rates are intended to remain unchanged up until the levy review in 2027.
However, if the levy is yielding more or less than the desired £100 million a year, rates may need to be updated beforehand.
UK oil and gas taxes
Financial year 2021 to 2022
Financial year 2022 to 2023
Financial year 2023 to 2024
Petroleum Revenue Tax
0%
0%
0%
Ring fence Corporation Tax
30%
30%
30%
Supplementary charge
10%
10%
10%
For North Sea oil and gas ring fence profits the main rate is 30% and the small profits rate is 19%. The marginal relief ring fence fraction is 11/400ths.
Public Interest Business Protection Tax
January 2022 to April 2024
Rate
75%
Threshold of taxable assets
£100 million
Energy Profits Levy
Rate
26 May 2022 to 31 December 2022
25%
1 January 2023 to 31 March 2028
35%
Electricity Generator Levy
January 2023 to 31 March 2023
Financial year 2023 to 2024
Rate
45%
45%
Benchmark price
£75 per megawatt hour
£75 per megawatt hour
Allowance
£10 million
£10 million
Business rates
Financial year 2022 to 2023
Financial year 2023 to 2024
England standard multiplier
51.2 pence
51.2 pence
England small business multiplier
49.9 pence
49.9 pence
The England small business multiplier applies to properties with a rateable value of less than £51,000.
Indirect tax
The Budget confirmed that alcohol duty rates under the revised structure to be introduced from 1 August 2023 have been uprated by Retail Price Index (RPI); but the value of Draught Relief has been increased from the previously proposed 5% on qualifying beer and cider and 20% on qualifying wine, spirits, and other fermented products, to 9.2% for qualifying beer and cider and 23% for qualifying wine, spirits, and other fermented products.
Alcohol duty
Product
Duty rate from 1 August 2023 (per litre of alcohol in the product)
All alcoholic products: less than 3.5% alcohol by volume (ABV)
£9.27
Still cider and perry: at least 3.5% but less than 8.5% ABV
£9.67
Sparkling cider and perry: at least 3.5% but not exceeding 5.5% ABV
£9.67
Beer: at least 3.5% but less than 8.5% ABV
£21.01
Spirits, wine, and other fermented products: at least 3.5% but less than 8.5% ABV
£24.77
Sparkling cider and perry: exceeding 5.5% ABV but less than 8.5% ABV
£24.77
All alcoholic products: at least 8.5% but not exceeding 22% ABV
£28.50
All alcoholic products: exceeding 22% ABV
£31.64
Wine between 11.5% and 14.5% alcohol by volume will be treated if it is 12.5% alcohol by volume for the purposes of calculating the charge to alcohol duty from 1 August 2023 until 1 February 2025.
Product
Reduced rates for qualifying draught products
All alcoholic products: less than 3.5% ABV
£8.42
Still cider and perry: at least 3.5% but less than 8.5% ABV
£8.78
Sparkling cider and perry: at least 3.5% but not exceeding 5.5% ABV
£8.78
Beer, spirits, wine, and other fermented products: at least 3.5% (but less than 8.5% ABV)
£19.08
Sparkling cider and perry: exceeding 5.5% but less than 8.5% ABV
£19.08
Tobacco Products
Cigarettes
The duty rate for cigarettes will be either the duty rate plus the ad valorem element, or the minimum excise tax, whichever is higher.
Duty rate plus ad valorem element
Minimum excise tax
From 6pm 27 October 2021
An amount equal to 16.5% of the retail price plus £262.90 per 1,000 cigarettes
£347.86 per 1000 cigarettes
From 6pm 15 March 2023
An amount equal to 16.5% of the retail price plus £294.72 per 1,000 cigarettes
£393.45 per 1,000 cigarettes
Cigars
Duty rate plus ad valorem element
Minimum excise tax
From 6pm 27 October 2021
£327.92 per kg
Not applicable
From 6pm 15 March 2023
£367.61 per kg
Not applicable
Hand-rolling tobacco
Duty rate plus ad valorem element
Minimum excise tax
From 6pm 27 October 2021
£302.34 per kg
Not applicable
From 6pm 15 March 2023
£351.03 per kg
Not applicable
Other smoking tobacco and chewing tobacco
Duty rate plus ad valorem element
Minimum excise tax
From 6pm 27 October 2021
£144.17 per kg
Not applicable
From 6pm 15 March 2023
£161.62 per kg
Not applicable
Tobacco for heating
Duty rate plus ad valorem element
Minimum excise tax
From 6pm 27 October 2021
£270.22 per kg
Not applicable
From 6pm 15 March 2023
£302.93 per kg
Not applicable
Gambling duties
Bingo duty
Tax year 2022 to 2023
Tax year 2023 to 2024
Percentage of bingo promotion profits
10%
10%
General betting duty
Tax year 2022 to 2023
Tax year 2023 to 2024
Percentage of ‘net stake receipts’ for fixed odds bets and totalisator bets on horse or dog races
15%
15%
Percentage of ‘net stake receipts’ for financial spread bets
3%
3%
Percentage of ‘net stake receipts’ for all other spread bets
10%
10%
Pool betting duty
Tax year 2022 to 2023
Tax year 2023 to 2024
Percentage of net pool betting receipts
15%
15%
Lottery duty
Tax year 2022 to 2023
Tax year 2023 to 2024
Percentage of the price paid or payable on taking a ticket or chance in a lottery
12%
12%
Remote gaming duty
Tax year 2022 to 2023
Tax year 2023 to 2024
Percentage of remote gaming profits
21%
21%
Machine games duty
Tax year 2022 to 2023
Tax year 2023 to 2024
Percentage of the net takings from dutiable machine games with a maximum cost to play not more than 20 pence and a maximum cash prize not more than £10 (Type 1 machines)
5%
5%
Percentage of net takings from machines which are not Type 1 machines but where the cost to play cannot exceed £5
20%
20%
Percentage of net takings from dutiable machine games where the maximum cost to play can exceed £5
25%
25%
Gaming duty 2022 to 2023
Tax rate
Gross gaming yield
15%
£2,686,000
20%
£1,852,000
30%
£3,243,000
40%
£6,845,000
50%
Remainder
Tax rate
Gross gaming yield
15%
£2,686,000
20%
£1,852,000
30%
£3,243,000
40%
£6,845,000
50%
Remainder
Insurance Premium Tax
Tax year 2022 to 2023
Tax year 2023 to 2024
Standard rate
12%
12%
Higher rate
20%
20%
Soft Drinks Industry Levy
To 15 March 2023
From 15 March 2023
Standard rate
18 pence per litre
18 pence per litre
Higher rate
24 pence per litre
24 pence per litre
Climate Change Levy main rates
Taxable commodity
Rate from 1 April 2022
Rate from 1 April 2023
Rate from 1 April 2024
Electricity (£ per kilowatt hour)
0.00775
0.00775
0.00775
Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility (£ per kilowatt hour)
0.00568
0.00672
0.00775
Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state (£ per kg)
0.02175
0.02175
0.02175
Any other taxable commodity (£ per kg)
0.04449
0.05258
0.06064
Climate Change Levy reduced rates
Taxable commodity
Rate from 1 April 2022
Rate from 1 April 2023
Rate from 1 April 2024
Electricity (percentage of main rate)
8%
8%
8%
Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility (percentage of main rate)
14%
12%
11%
Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state (percentage of main rate)
23%
23%
23%
Any other taxable commodity (percentage of main rate)
14%
12%
11%
Carbon Price Support rates of Climate Change Levy and fuel duty
Rate from 1 April 2021 to 31 March 2025
Carbon price equivalent (£ per tonne of carbon dioxide)
18.00
Supplies of commodity used in electricity generation
Rate from 1 April 2021 to 31 March 2025
Natural gas (£ per kilowatt hour)
0.00331
Liquefied petroleum gas (£ per kg)
0.05280
Coal and other taxable solid fossil fuels (£ per gross gigajoule)
1.54790
Gas oil; rebated bioblend; and kerosene (£ per litre)
0.04916
Fuel oil; other heavy oil and rebated light oil (£ per litre)
0.05711
Aggregates levy
Taxable commodity
Rate from 1 April 2022
Rate from 1 April 2023
Rate from 1 April 2024
Commercially exploited taxable aggregate
£2 per tonne
£2 per tonne
£2.03 per tonne
Landfill Tax: rates for 2022 to 2024
Material sent to landfill
Rate from 1 April 2022
Rate from 1 April 2023
Rate from 1 April 2024
Coverage
England and Northern Ireland
England and Northern Ireland
England and Northern Ireland
Standard rated (per tonne)
£98.60
£102.10
£103.70
Lower rated (per tonne)
£3.15
£3.25
£3.30
Landfill Tax was devolved to the Scottish Parliament in April 2015 and to the Welsh Parliament (Senedd Cymru) in April 2018.
Landfill Communities Fund — 2023 to 2024
As announced at Spring Budget 2023, the government will set the value of the Landfill Communities Fund for 2023 to 2024 at £32.9 million, with the cap on contributions by landfill operators remaining at 5.3% of their Landfill Tax liability.
Plastic Packaging Tax
Rate from 1 April 2022
Rate from 1 April 2023
Plastic packaging with less than 30% recycled plastic content
£200 per tonne
£210.82 per tonne
This applies to plastic packaging with less than 30% recycled plastic content.
Air passenger duty rates for 2023 to 2024
Bands (approximate distance in miles from the UK)
Reduced rate (lowest class of travel) from 1 April 2023
Standard rate (other than the lowest class of travel) from 1 April 2023
Higher rate from 1 April 2023
Domestic (flights within the UK)
£6.50
£13
£78
Band A (0 to 2,000 miles)
£13
£26
£78
Band B (2,001 to 5,500 miles)
£87
£191
£574
Band C (over 5,500 miles)
£91
£200
£601
Air passenger duty applies to flights aboard aircraft 5.7 tonnes and above.
Rates for direct long-haul flights from Northern Ireland are devolved and set at £0. Direct long haul journeys are those where the first leg of the journey is to a destination outside Band A.
Where a class of travel provides a seat pitch in excess of 1.016 metres (40 inches), the standard rate is the minimum rate that applies.
The higher rate applies to flights on aircraft of 20 tonnes and above, with fewer than 19 seats.
Air passenger duty rates for 2024 to 2025
Bands (approximate distance in miles from the UK)
Reduced rate (lowest class of travel) from 1 April 2024
Standard rate (other than the lowest class of travel) from 1 April 2024
Higher rate from 1 April 2024
Domestic (flights within the UK)
£7
£14
£78
Band A (0 to 2,000 miles)
£13
£26
£78
Band B (2,001 to 5,500 miles)
£88
£194
£581
Band C (over 5,500 miles)
£92
£202
£607
Air passenger duty applies to flights aboard aircraft 5.7 tonnes and above.
Rates for direct long-haul flights from Northern Ireland are devolved and set at £0. Direct long haul journeys are those where the first leg of the journey is to a destination outside Band A.
Where a class of travel provides a seat pitch in excess of 1.016 metres (40 inches), the standard rate is the minimum rate that applies.
The higher rate applies to flights on aircraft of 20 tonnes and above, with fewer than 19 seats.
Fuel duty — pound per litre unless stated
Light oils
Rates on from 23 March 2022 until the end of 22 March 2024
Unleaded petrol
0.5295
Light oil (other than unleaded petrol or aviation gasoline)
0.6267
Aviation gasoline (Avgas)
0.3629
Light oil delivered to an approved person for use as furnace fuel
0.0978
Heavy oils
Rates on from 23 March 2022 until the end of 22 March 2024
Heavy oil (diesel)
0.5295
Marked gas oil
0.1018
Fuel oil
0.0978
Heavy oil other than fuel oil, gas oil or kerosene used as fuel
0.0978
Kerosene to be used as fuel in an engine, other than in a road vehicle or for heating
0.1018
Biofuels
Rates on from 23 March 2022 until the end of 22 March 2024
Bio-ethanol
0.5295
Bio-diesel
0.5295
Bio-diesel for non-road use
0.1018
Bio-diesel blended with gas oil not for road fuel use
0.1018
Road fuel gases
Rates on from 23 March 2022 until the end of 22 March 2024
Liquefied petroleum gas (£ per kg)
0.2888
Road fuel natural gas including biogas (£ per kg)
0.2257
Other fuel
Rates on from 23 March 2022 until the end of 22 March 2024
Aqua-methanol set aside for road use
0.0722
Vehicle Excise Duty (VED) bands and rates for cars first registered on or after 1 April 2017
The changes to Vehicle Excise Duty rates to take effect from 1 April 2022 are set out in these tables.
Tax year 2022 to 2023
CO2 emissions (g/km)
Standard rate
First year rate
0
0
0
1 to 50
165
10
51 to 75
165
25
76 to 90
165
120
91 to 100
165
150
101 to 110
165
170
111 to 130
165
190
131 to 150
165
230
151 to 170
165
585
171 to 190
165
945
191 to 225
165
1,420
226 to 255
165
2,015
Over 255
165
2,365
Tax year 2023 to 2024
CO2 emissions (g/km)
Standard rate
First year rate
0
0
0
1 to 50
180
10
51 to 75
180
30
76 to 90
180
130
91 to 100
180
165
101 to 110
180
185
111 to 130
180
210
131 to 150
180
255
151 to 170
180
645
171 to 190
180
1,040
191 to 225
180
1,565
226 to 255
180
2,220
Over 255
180
2,605
Budget 2018 announced that new diesel vehicles registered after 1 April 2018 that do not meet the real driving emission step 2 (RDE2) standard will be charged a supplement on their first year rate to the effect of moving up by one Vehicle Excise Duty band.
Cars with a list price of over £40,000 when new pay an additional rate of £390 per year on top of the standard rate, for five years.
Alternative fuelled vehicles, including hybrids, bioethanol and liquid petroleum gas, pay £170 per annum.
Vehicle Excise Duty bands and rates for cars registered on or after 1 March 2001
Tax year 2022 to 2023
Vehicle Excise Duty band
CO2 emissions (g/km)
Standard rate
A
Up to 100
0
B
101 to 110
20
C
111 to 120
30
D
121 to 130
135
E
131 to 140
165
F
141 to 150
180
G
151 to 165
220
H
166 to 175
265
I
176 to 185
290
J
186 to 200
330
K
201 to 225
360
L
226 to 255
615
M
Over 255
630
Band K includes cars emitting over 225g/km registered before 23 March 2006.
Tax year 2023 to 2024
Vehicle Excise Duty band
CO2 emissions (g/km)
Standard rate
A
Up to 100
0
B
101 to 110
20
C
111 to 120
35
D
121 to 130
150
E
131 to 140
180
F
141 to 150
200
G
151 to 165
240
H
166 to 175
290
I
176 to 185
320
J
186 to 200
365
K
201 to 225
395
L
226 to 255
675
M
Over 255
695
Band K includes cars emitting over 225g/km registered before 23 March 2006.
Vehicle Excise Duty bands and rates for cars and vans registered before 1 March 2001
Engine size
Tax year 2022 to 2023
Tax year 2023 to 2024
1549cc and below
180
200
Above 1549cc
295
325
Vehicle Excise Duty bands and rates for vans registered on or after 1 March 2001
Vehicle registration date
Tax year 2022 to 2023
Tax year 2023 to 2024
Early Euro 4 and Euro 5 compliant vans
140
140
All other vans
290
320
Vehicle Excise Duty bands and rates for motorcycles
Engine size
Tax year 2022 to 2023
Tax year 2023 to 2024
Not over 150cc
22
24
151cc and 400cc
47
52
401cc to 600c
73
80
Over 600cc
101
111
Vehicle Excise Duty bands and rates for motor tricycles
Engine size
Tax year 2022 to 2023
Tax year 2023 to 2024
Not over 150cc
22
24
All other tricycles
101
111
Vehicle Excise Duty bands and rates for trade licenses
Vehicle type
Tax year 2022 to 2023
Tax year 2023 to 2024
Available for all vehicles
165
165
Available only for bicycles and tricycles (weighing no more than 450kg without a sidecar)
101
111
Vehicle Excise Duty rates for articulated vehicles and rigid vehicles without trailers
Vehicle Excise Duty band (letter and rate number)
12 months
6 months
A0
£165
£90.75
B0
£200
£110
A1
£80
£40
A2
£84
£42
A3
£100
£50
A4
£146
£73
A5
£151
£75.50
B1
£95
£47.50
B2
£105
£52.50
B3
£125
£62.50
C1
£210
£105
C2
£265
£132.50
C3
£289
£144.50
D1
£300
£150
E1
£560
£280
E2
£609
£304.50
F
£690
£345
G
£850
£425
Vehicle Excise Duty amounts payable for rigid vehicles with trailers (vehicles with road friendly suspension)
Heavy goods vehicle (HGV) axles
Trailer weight category
Total weight of HGV and trailer, not over
VED band
VED rates 12 months
VED rates 6 months
Two
4,001kg to 12,000kg
27,000kg
B(T)1
230
115
Two
Over 12,000kg
33,000kg
B(T)3
295
147.5
Two
Over 12,000kg
36,000kg
B(T)6
401
200.5
Two
Over 12,000kg
38,000kg
B(T)4
319
159.5
Two
Over 12,000kg
40,000kg
B(T)7
444
222
Two
4,001kg to 12,000kg
30,000kg
D(T)1
365
182.5
Two
Over 12,000kg
38,000kg
D(T)4
430
215
Two
Over 12,000kg
40,000kg
D(T)5
444
222
Three
4,001kg to 12,000kg
33,000kg
B(T)1
230
115
Three
Over 12,000kg
38,000kg
B(T)3
295
147.5
Three
Over 12,000kg
40,000kg
B(T)5
392
196
Three
Over 12,000kg
44,000kg
B(T)3
295
147.5
Three
4,001kg to 12,000kg
35,000kg
C(T)1
305
152.5
Three
Over 12,000kg
38,000kg
C(T)2
370
185
Three
Over 12,000kg
40,000kg
C(T)3
392
196
Three
Over 12,000kg
44,000kg
C(T)2
370
185
Three
4,001kg to 10,000kg
33,000kg
D(T)1
365
182.5
Three
4,001kg to 10,000kg
36,000kg
D(T)3
401
200.5
Three
10,001kg to 12,000kg
38,000kg
D(T)1
365
182.5
Three
Over 12,000kg
44,000kg
D(T)4
430
215
Four
4,001kg to 12,000kg
35,000kg
B(T)1
230
115
Four
Over 12,000kg
44,000kg
B(T)3
295
147.5
Four
4,001kg to 12,000kg
37,000kg
C(T)1
305
152.5
Four
Over 12,000kg
44,000kg
C(T)2
370
185
Four
4,001kg to 12,000kg
39,000kg
D(T)1
365
182.5
Four
Over 12,000kg
44,000kg
D(T)4
430
215
Four
4,001kg to 12,000kg
44,000kg
E(T)1
535
267.5
Four
Over 12,000kg
44,000kg
E(T)2
600
300
Vehicle Excise Duty amounts payable for rigid vehicles with trailers (vehicles without road friendly suspension)
HGV axles
Trailer weight category
Total weight of HGV and trailer, not over
VED band
VED rates 12 months
VED rates 6 months
Two
4,001kg to 12,000kg
27,000kg
B(T)1
230
115
Two
4,001kg to 12,000kg
27,000kg
B(T)1
230
115
Two
Over 12,000kg
31,000kg
B(T)3
295
147.5
Two
Over 12,000kg
33,000kg
B(T)6
401
200.5
Two
Over 12,000kg
36,000kg
B(T)10
609
304.5
Two
Over 12,000kg
38,000kg
B(T)7
444
222
Two
Over 12,000kg
40,000kg
B(T)9
604
302
Two
4,001kg to 12,000kg
30,000kg
D(T)1
365
182.5
Two
Over 12,000kg
33,000kg
D(T)4
430
215
Two
Over 12,000kg
36,000kg
D(T)8
609
304.5
Two
Over 12,000kg
38,000kg
D(T)5
444
222
Two
Over 12,000kg
40,000kg
D(T)7
604
302
Three
4,001kg to 10,000kg
29,000kg
B(T)1
230
115
Three
4,001kg to 10,000kg
31,000kg
B(T)2
289
144.5
Three
10,001kg to 12,000kg
33,000kg
B(T)1
230
115
Three
Over 12,000kg
36,000kg
B(T)3
295
147.5
Three
Over 12,000kg
38,000kg
B(T)5
392
196
Three
Over 12,000kg
40,000kg
B(T)8
542
271
Three
4,001kg to 10,000kg
31,000kg
C(T)1
305
152.5
Three
4,001kg to 10,000kg
33,000kg
C(T)4
401
200.5
Three
10,001kg to 12,000kg
35,000kg
C(T)1
305
152.5
Three
Over 12,000kg
36,000kg
C(T)2
370
185
Three
Over 12,000kg
38,000kg
C(T)3
392
196
Three
Over 12,000kg
40,000kg
C(T)5
542
271
Three
4,001kg to 10,000kg
31,000kg
D(T)1
365
182.5
Three
4,001kg to 10,000kg
33,000kg
D(T)3
401
200.5
Three
4,001kg to 10,000kg
35,000kg
D(T)8
609
304.5
Three
10,001kg to 12,000kg
36,000kg
D(T)1
365
182.5
Three
10,001kg to 12,000kg
37,000kg
D(T)2
392
196
Three
Over 12,000kg
38,000kg
D(T)4
430
215
Three
Over 12,000kg
40,000kg
D(T)6
542
271
Four
4,001kg to 12,000kg
35,000kg
B(T)1
230
115
Four
Over 12,000kg
40,000kg
B(T)3
295
147.5
Four
4,001kg to 12,000kg
37,000kg
C(T)1
305
152.5
Four
Over 12,000kg
40,000kg
C(T)2
370
185
Four
4,001kg to 10,000kg
36,000kg
D(T)1
365
182.5
Four
4,001kg to 10,000kg
37,000kg
D(T)5
444
222
Four
10,001kg to 12,000kg
39,000kg
D(T)1
365
182.5
Four
Over 12,000kg
40,000kg
D(T)4
430
215
Four
4,001kg to 10,000kg
38,000kg
E(T)1
535
267.5
Four
4,001kg to 10,000kg
40,000kg
E(T)3
604
302
Four
10,001kg to 12,000kg
40,000kg
E(T)1
535
267.5
Rigid goods vehicles
The band and rate payable can be calculated by using the following look-up tables.
In the table, the letter indicates the Vehicle Excise Duty and levy band the vehicle is in, and the number indicates the rate that is payable as part of that band (for example B2 would refer to Vehicle Excise Duty and levy band B, and rate 2 as determined by the weight and axle configuration of the vehicle).
For vehicles with trailers, the rate paid depends on whether the vehicle has road-friendly suspension.
There are separate tables for with and without road friendly suspension.
Rigid goods vehicle without trailer
Revenue weight of vehicle over
Revenue weight of vehicle not over
2 axles
3 axles
4 or more axles
3,500kg
7,500kg
A0
A0
A0
7,500kg
11,999kg
B0
B0
B0
11,999kg
14,000kg
B1
B1
B1
14,000kg
15,000kg
B2
B1
B1
15,000kg
19,000kg
D1
B1
B1
19,000kg
21,000kg
D1
B3
B1
21,000kg
23,000kg
D1
C1
B1
23,000kg
25,000kg
D1
D1
C1
25,000kg
27,000kg
D1
D1
D1
27,000kg
44,000kg
D1
D1
E1
Rigid vehicles with trailer
Revenue weight of vehicle (not trailer) over
Revenue weight of vehicle (not trailer) not over
2-axled rigid
3-axled rigid
4-axled rigid
11,999kg
15,000kg
B(T)
B(T)
B(T)
15,000kg
21,000kg
D(T)
B(T)
B(T)
21,000kg
23,000kg
E(T)
C(T)
B(T)
23,000kg
25,000kg
E(T)
D(T)
C(T)
25,000kg
27,000kg
E(T)
D(T)
D(T)
27,000kg
44,000kg
E(T)
E(T)
E(T)
Articulated vehicles
Articulated vehicles, tractive unit with 3 or more axles
Revenue weight of vehicle over
Revenue weight of vehicle not over
One or more semi-trailer axles
2 or more semi trailer axles
3 or more semi-trailer axles
3,500kg
11,999kg
A0
A0
A0
11,999kg
25,000kg
A1
A1
A1
25,000kg
26,000kg
A3
A1
A1
26,000kg
28,000kg
A4
A1
A1
28,000kg
29,000kg
C1
A1
A1
29,000kg
31,000kg
C3
A1
A1
31,000kg
33,000kg
E1
C1
A1
33,000kg
34,000kg
E2
D1
A1
34,000kg
36,000kg
E2
D1
C1
36,000kg
38,000kg
F
E1
D1
38,000kg
44,000kg
G
G
E1
Articulated vehicles, tractive unit with 2 axles
Revenue weight of vehicle over
Revenue weight of vehicle not over
One or more semi-trailer axles
2 or more semi trailer axles
3 or more semi-trailer axles
3,500kg
11,999kg
A0
A0
A0
11,999kg
22,000kg
A1
A1
A1
22,000kg
23,000kg
A2
A1
A1
23,000kg
25,000kg
A5
A1
A1
25,000kg
26,000kg
C2
A3
A1
26,000kg
28,000kg
C2
A4
A1
28,000kg
31,000kg
D1
D1
A1
31,000kg
33,000kg
E1
E1
C1
33,000kg
34,000kg
E1
E2
C1
34,000kg
38,000kg
F
F
E1
38,000kg
44,000kg
G
G
G
Heavy goods vehicle (HGV) levy
Following the end of the Heavy goods vehicle levy suspension period, the new reformed Heavy goods vehicle levy comes into effect from 1 August 2023. The rates are set out in this table.
Weight category
Newest, cleanest vehicles (EURO VI or later)
Older vehicles (Euro V or earlier)
From 12 tonnes, and up to 31 tonnes
£150
£195
Above 31 tonnes, and up to 38 tonnes
£360
£468
Above 38 tonnes
£576
£749
VAT
April 2022 to 2023
April 2023 to 2024
Standard rate
20%
20%
Reduced rate
5%
5%
Zero rate
0%
0%
Exempt
Not applicable
Not applicable
VAT registration and deregistration thresholds
From April 2022
From April 2023
VAT registration thresholds
£85,000
£85,000
VAT deregistration threshold
£83,000
£83,000
