Tax Facts 2022/2023

Based on Budget announcements
to 23 March 2022

Income Tax Rates

Non-savings, non-dividend income

  2021/22 2022/23
Individual UK    
Basic rate (20%) £1 - £37,700 £1 - £37,700
Higher rate (40%)  £37,700 - £150,000 £37,700 - £150,000
Additional rate (45%) Over £150,000 Over £150,000
Individuals - Scotland    
Starter rate (19%) £1 - £2,097 £1 - £2,162
Basic rate (20%) £2,098 - £12,726 £2,163 - £13,118
Intermediate rate (21%) £12,727 - £31,092 £13,119 - £31,092
Higher rate (41%) £31,093 - £150,000 £31,093 - £150,000
Top/Additional rate (46%) Over £150,000 Over £150,000
Trusts    
Standard rate (20%) £1 - £1,000 £1 - £1,000
Trust rate (45%) Over £1,000 Over £1,000

 

Income Tax Allowances UK

  2021/22 2022/23
Basic personal allowance - A £12,570 £12,570

Maximum married/civil partners allowance - B

£9,125 £9,415
Minimum married/civil partners allowance - B £3,530 £3.640
Married/civil partners transferrable allowance - B £1,260 £1,260
Income limit for married/civil partners allowance - B £30,400 £31,400
Blind persons allowance - B £2,520 £2,600
Savings allowance £7,500 £7,500
Trading income allowance - C £1,000 £1,000
Property income allowance - C £1,000 £1,000

A - Reduces by £1 for every £2 adjusted net income exceeds income limit (£100,000).
B - Available to persons born before 6th April 1935. Relief limited to 10%. Reduced to minimum allowance by £1 for every £2 over income limit.
C - If gross income in excess of £1,000, a deduction of £1,000 instead of actual expenses is permitted.

Child benefits and Tax Credits

Child Tax Credits 2021/22
Family element £545 per year
Child element £2,845 per year
Disabled child element £3,845 per year
Severely disabled child element £1 ,390 per year
Income threshold £6,565 per year
Withdrawal rate  41%
First threshold for those entitled to Child Tax Credit only £16,480 per year
Top/Additional rate (46%) Over £150,000
   
Child Benefit £21.05 per week
First/Oldest Child £21.05 per week
Other children £14.00 per week
Guardians allowance £18.00 per week

Special rates for trustees' income

  2021/22 2022/23
Standard rate on the first £1,000 of income
which would otherwise be taxable at the
special rate 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 38.1% 39.35%

Capital Gains Tax

Annual exemption 2021/22 2022/23
Individuals £12,300 £12,300
Trusts £6,150 £6,150
Business asset disposal relief lifetime allowance £1m £1m
Investors' relief lifetime allowance £10m £10m
Individual trusts    
Basic and starting rate taxpayers 10% 10%
Higher and additional rate taxpayers 20% 20%
Trusts and personal representatives 20% 20%
Rate where business asset disposal/investors' relief applies 10% 10%

 

Inheritance Tax

  2021/22 2022/23
NI rate (NRB) £1 - £325,000 - A £12,300 £12,300
Over £325,000 - B,C £6,150 £6,150
Main Exemptions
Annual gifts per donor £3'000 Parent £5,000
Small gifts per donee £250 Grandparent/remoter ancestor £2,500
Normal expenditure out of income Exempt Other £1,000

A - Additional residence nil rate band (RNRB) of £175,000 for transfers of a main residence to direct descendants. NRB and RNRB for estate of surviving spouse are increased by unutilised percentage of NRB and RNRB of predeceased spouse. RNRB tapers away for estates over 2m.
B - Some lifetime gifts are taxed at 20%
C - Tax rate reduced to 36% where 10% or more of net chargeable estate is left to charity.

 

National Insurance Contributions 2022/23

Employer (Class 1)   Employee (Class 1)
Earnings per week Rate payable Earnings per week Rate payable
£0.01 - £175.00 Nil

£0.01 - £190.00 
(£0.01 - £242.00 from 6 July 2022

Nil
Over £175.00 15.5%

£190.01 - £967.00
(£242.01 - £967.00 from 6 July 2022)

13.25%
    Over £967.00 3.32%

Class 1A and 1B
(employers only)

15.05%    

Class 2 
(self employed)

£3.13 per week
for profits above lower profits limit £11,908
(£12, 570 from 6 April 2023)

Class 3
(voluntary)

£15.85 per week

Class 4
(self employed)

Profits up to £11,908
(£12,570 from 6 April 2023)

Nil
Rate where business asset
disposal/investors' relief applies

Profits from £11,909
(£12,571 from 6 April 2023) to £50,270

10.25%
  Profits above £50,270 per annum 3.25%

For 2022/23 only, NICs rates include a 1.25% health and social care uplift. For 2023/24, NICs rates will revert to: 13.8% (Classes 1 employer, 1A and 1B); 12% AND 2% (Class 1 employee); and, 9% and 2% (Class 4) respectively, with the introduction of a separate 1.25% Health and Social Care Levy on employers, employees and self-employed individuals.
 

Savings and Dividend rate

  2021/22 2022/23
Savings rates These figures apply to savings income
Starting rate 0% 0%
Basic rate 20% 20%
Higher rate 40% 40%
Additional rate 45% 45%
Dividend rate These figures apply to dividend income received
above the £2,000 tax-free dividend allowance
Ordinary rate 7.5% 8.75%
Upper rate 32.5% 33.75%
Additional rate 38.1% 39.35%

 

Tax Free Savings Accounts

  2021/22 2022/23
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

 

Pensions Tax Relief

  2021/22 2022/23
Lifetime Allowance limit £20,000 £20,000
Annual Allowance limit £9,000 £9,000
Tapered Annual Allowance - A £9,000 £9,000

A - applies wen an individual has 'adjusted income' over this amount provided the 'threshold income' test is met.

 

Car and Fuel Scale Benefits

Car Benefit   Percentage of list price  
Lifetime Allowance limit   £25,300
Annual Allowance limit   £3,600
Tapered Annual Allowance - A   £688
       
C02 emissions (g/km): Electric range (miles) Diesel Other fuel
Nil     1%
1-50 130 or more 6% 2%
1-50 70-129 9% 5%
1-50 40-69 12% 8%
1-50 30-39 16% 12%
1-50 Less than 30 18% 14%
51-54   19% 15%
Each additional 5   Further 1% Further 1%
Diesel 140 and over / other fuel 160 or over   37% 37%

Diesel vehicles meeting the RDE2 standard are exempt from diesel supplement and the above other fuel rates apply for such vehicles. 

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