2024 Tax Year Changes Summarized Factsheet

Published on April 10, 2024

National InsuranceIncome TaxStudent LoanCaptical Gains Tax

Dividends Tax

Summary of changes

National Insurance contribution rate cuts

National Insurance contributions (NICs) will be reduced by 2%:

  1. Employees' contributions will decrease from 10% to 8%.
  2. Self-employed individuals' contributions will drop from 8% to 6%.

Additionally, self-employed individuals won’t have to pay Class 2 NICs. However, they can still choose to pay them voluntarily under certain circumstances to maintain access to contributory benefits.

High-Income Child Benefit Change

The threshold for the High-Income Child Benefit Charge has increased from £50,000 to £60,000. Also, the highest income limit before the charge kicks in will increase from £60,000 to £80,000.

Minimum wage increases

The Minimum Wage and Living Wage has their biggest increases ever. Additionally, the age requirement for qualifying for the National Living Wage will drop from 23 to 21.

Here are the new rates:

  • For people 21 and over: £11.44
  • For those aged 18 to 20: £8.60
  • Under 18: £6.40
  • Apprentices: £6.40

Scotland tax band change

A new Advanced income tax band is added for annual income between £75,000 and £125,140. An additional 1% will be added to the Top rate of tax meaning income over £125,140 will be taxed at 48%.

Income RangeIncome Tax Rate
£12,571 - £14,8761Starter rate: 19%
£14,877 - £26,561Basic rate: 20%
£26,562 - £43,662Intermediate rate: 21%
£43,663 - £75,000Higher rate: 42%
£75,001 - £125,140Advanced rate: 45%
Over £125,140Top rate: 48%

Dividend tax allowance cuts

The tax-free allowance for dividend income decrease from £1000 to £500.

Student loan threshold increases

The student loan threshold for some plans has been increased, but the repayment percentage remains the same.

Plan typeYearly thresholdMonthly thresholdWeekly threshold
Plan 1£24,990£2,082£480
Plan 2£27,295£2,274£524
Plan 4£31,395£2,616£603
Plan 5£25,000£2,083£480
Postgraduate Loan£21,000£1,750£403

Capital Gains Tax changes

The higher Capital Gains Tax (CGT) rate on residential property will fall from 28% to 24%.

VAT registration threshold rises to £90k

The VAT registration threshold will increase from £85,000 to £90,000.

The threshold for deregistration will also rise from £83,000 to £88,000, allowing businesses with declining revenue to deregister sooner.


National Insurance Contributions (Reduction in Rates)

Reduction of the dividend allowance

The National Minimum Wage in 2024

Income tax changes - gov.scot - The Scottish Government

Information on changes to the High Income Child Benefit