Based on Budget announcements
from 6th April 2023
Income Tax Rates
Non-savings, non-dividend income
| |
2022/23 |
2023/24 |
|---|
| Individual UK |
|
|
| Basic rate (20%) |
£1 - £37,700 |
£1 - £37,700 |
| Higher rate (40%) |
£37,700 - £150,000 |
£37,700 - £125,140 |
| Additional rate (45%) |
Over £150,000 |
Over £125,140 |
| Individuals - Scotland |
|
|
| Starter rate (19%) |
£1 - £2,162 |
£1 - £2,162 |
| Basic rate (20%) |
£2,163 - £13,118 |
£2,163 - £13,118 |
| Intermediate rate (21%) |
£13,119 - £31,092 |
£13,119 - £31,092 |
| Higher rate (41%) |
£31,093 - £150,000 |
£31,093 - £125,140 |
| Top/Additional rate (46%) |
Over £150,000 |
Over £125,140 |
| 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 |
2023/24 |
|---|
| Family element |
£545 per year |
| Child element |
£3,235 per year |
| Disabled child element |
£3,905 per year |
| Severely disabled child element |
£1,575 per year |
| Income threshold |
£7,455 per year |
| Withdrawal rate |
41% |
| First threshold for those entitled to Child Tax Credit only |
£18,725 per year |
| Top/Additional rate (46%) |
Over £125,140 |
| |
|
| Child Benefit |
|
| First/Oldest Child |
£24.00 per week |
| Other children |
£15.90 per week |
| Guardians allowance |
£20.40 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 |
2022/23 |
2023/24 |
|---|
| Individuals |
£12,300 |
£6,000 |
| Trusts |
£6,150 |
£3,000 |
| 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
| |
2022/23 |
2023/24 |
|---|
| 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
| |
2022/23 |
2023/24 |
|---|
| 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 |
8.75% |
8.75% |
| Upper rate |
33.75% |
33.75% |
| Additional rate |
39.35% |
39.35% |
Tax Free Savings Accounts
| |
2022/23 |
2023/24 |
|---|
| 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.
