2024/25 UK Tax Year — What Changed?
The 2024/25 tax year (6 April 2024 – 5 April 2025) brought several important changes that affect millions of taxpayers. The Personal Allowance remains frozen at £12,570 — unchanged since April 2021. With wage growth outpacing this freeze, more people have been pulled into higher tax bands in a process economists call "fiscal drag."
The biggest change for employees was the National Insurance main rate cut from 10% to 8% effective January 2024, saving a typical basic-rate taxpayer around £450 per year. The NI upper earnings limit at £50,270 was also unchanged, meaning higher earners pay 2% on income above that level.
For investors and landlords, the CGT annual exempt amount fell to £3,000 (from £12,300 in 2022/23), and the dividend allowance dropped to £500 (from £2,000 in 2022/23). Both cuts significantly increased the tax bills of people with investment portfolios or who extract income from limited companies via dividends.
In October 2024, the CGT rates on residential property changed — the lower rate increased from 18% to 18% (unchanged) and the higher rate decreased from 28% to 24%, applying from 30 October 2024.
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Read our complete income tax guide, our capital gains tax on property guide, and our self-assessment guide for the self-employed.