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2022/23 Tax Tables

Making sure you’re all up-to-date with the taxes you’ll be paying in the coming tax year is a great way to get the year off to a ‘money-wise’ flying start.

Read our Ultimate Guide to the New Tax Year

Personal tax allowances and reliefs

So you can easily compare the current tax year with the new one, we put figures in brackets to show the difference in £s from the previous tax year of 2021/22.

1. Personal allowance: £12,570 (£0)

2. Income limit for personal allowance: £100,000 (£0)

3. Income limit for couple’s allowance: £31,400 (+£1,000)

In 2022/23 the new tax year sees income above £100,000 reduce the Personal Allowance by £1 for every £2 of income above the £100,000 limit. Your date of birth won’t change this. The income limit for married couple’s allowance is based on your age and it is reduced by £1 for every £2 of income over the allowance limit.

Marriage, savings and other tax allowances

MARRIAGE ALLOWANCE

  • Marriage allowance: £1,260 (£0)
  • Married couple’s allowance for those born before 6 April 1935
    • Maximum amount of married couple’s allowance: £9,415 (+£290)
    • Minimum amount of married couple’s allowance £3,640 (+£110)

This transferable allowance can be claimed by married couples and civil partners who don’t collect a married couple’s allowance. A spouse or civil partner who doesn’t pay income tax, or doesn’t pay at the higher or additional rates, can transfer this amount of their unused personal allowance to their spouse or civil partner. The recipient likewise cannot be liable to pay income tax at the higher or additional rates.

The relief for this allowance is given at 10%

 

PERSONAL SAVINGS ALLOWANCE 

No changes here at all.

  • Basic rate tax payers: £1,000 (£0)
  • Higher rate tax payers: £500 (£0)
  • Individual Savings Account limit: £20,000 (£0)
  • Junior ISA subscription limit: £9,000 (£0)
  • Child Trust Fund subscription limit: £9,000 (£0)

 

PENSION TAX RELIEF

There are no changes to Pension Tax Relief in 2022/23 either.

  • Lifetime allowance: £1,073,100 (£0)
  • Annual allowance: £40,000 (£0)
  • Money purchase annual allowance: £4,000 (£0)
  • Tapered annual allowance: £240,000 (£0)

The annual allowance is reduced by £1 for every £2 of adjusted income over £240,000 to a minimum of £4,000, subject to threshold income being over £200,000

 

CAPITAL GAINS 

  • Capital gains tax allowance: £12,300 (£0)
  • Capital gains tax allowance for couples (Married/Civil Partnership) : £24,600 (£0)
  • Capital gains tax annual exempt amount for most trustees: £6,150 (£0)

If you want to find out more about Capital Gains Tax or understand what CGT is, read this article.

ADDITIONAL ALLOWANCES

  • Blind Person’s allowance: £2,600 (+£20)
  • Dividend allowance: £2,000 (£0)
  • Rent-a-room relief tax free income: £7,500 (£0)
  • High income child benefit charge: 1% of benefit per £100 adjusted net income of £50,000 to £60,000

Income tax bands and rates

These figures apply to non-dividend income, including income from savings, employment, property or pensions.

Basic Rate 20%: £1 to £37,700

Higher Rate 40%: £37,701 to £150,000

Additional Rate 45%: Over £150,000

Currently there will be no changes on these rates or bands until the 2025/26 tax year.

Savings, dividend income and other tax rates

SAVINGS INCOME

These figures apply to savings income for 2022 to 2023. Starting rate limit for savings is £5,000

  • Savings Starting rate: 0%
  • Savings Basic rate: 20%
  • Savings Higher rate: 40%
  • Savings Additional rate: 45%

 

DIVIDEND INCOME

Dividend rates apply to dividend income received above the £2,000 tax-free Dividend Allowance

  • Dividend upper rate: 33.75% (+1.25%)
  • Dividend ordinary rate: 8.75% (+1.25%)
  • Dividend additional rate: 39.35% +1.25%)

 

DEFAULT RATES

Default tax rates 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.

  • Default basic rate: 20%
  • Default higher rate: 40%
  • Default additional rate: 45%

 

TRUSTEES’ INCOME

  • Standard rate: Up to 20% (depends on type of income)
  • Dividend trust rate: 39.35% (+1.25%)
  • Trust rate: 45%

Saving for your children or grandchildren may well be high on your list of priorities. Putting an investment strategy in place is a good starting point to assess your requirements. 

We’ve got a range of guides to help with this.

Class 1 NIC (National Insurance Contribution) Employee & Employer

NICs rate employee: 13.25% (+1.25%)

NICs rate employer: 13.8% (+1.25%)

Lower earnings limit: £6,396/year (+£156)

Primary threshold: £9,880/year (+£312)

Secondary threshold: £9,100/year (+£260)

Upper earnings limit: £50,270/year

Upper secondary threshold for under 21s: £50,270/year

Apprentice upper secondary threshold for under 25s: £50,270/year

The figures in brackets are the difference in £s from the previous tax year 2020/21

Self-employed national insurance rates

CLASS 2

Flat rate: £3.15pw / £163.80pa (+£0.10pw)
Small profits threshold: £6,725 pa

CLASS 3

Covers gaps in a person’s NIC record found on the personal tax account where you will need to pay voluntary contributions. The rate increases from £15.40 to £15.85 in 2022/23.

CLASS 4

If self-employed profits are higher than the lower profits limit (LPL) class 4 NIC will be payable.

Lower profit limit up to 10.25 from 9%: £9,880 pa (+£312)
Upper profits limit up to 3.25 from 2%: £50,270 (+£0)

Inheritance Tax

Inheritance tax figures have not changed from the 21/22 tax year.

Rate for estates: 40%

Reduced rate for estates leaving 10% or more to charity: 36%

Rate for chargeable lifetime transfers: 20%

Nil-rate band limit: £325,000

Residence nil-rate band limit: £175,000

Taper threshold for residence nil-rate band: £2,000,000

 

 

 

Capital gains taxes 2022/23

None of these figures have changed from the 2021/22 tax year

CAPITAL GAINS RATES ON ASSETS

  • Basic rate tax payer: 10%
  • Higher rate tax payer: 20%
  • For trustees basic and higher rate: 20%

 

CAPITAL GAINS RATES ON PROPERTY

  • Basic rate tax payer: 18%
  • Higher rate tax payer: 28%
  • For trustees basic and higher rate: 28%

 

GAINS SUBJECT TO BUSINESS ASSET DISPOSAL 

  • Basic rate tax payer: 10%
  • Higher rate tax payer: 10%

LIFETIME LIMIT ON QUALIFYING GAINS

  • Basic rate tax payer: £10,000,000
  • Higher rate tax payer: £10,000,000

 

GAINS SUBJECT TO INVESTORS’ RELIEF

  • Basic rate tax payer: 10%
  • Higher rate tax payer: 10%

LIFETIME LIMIT ON QUALIFYING GAINS

  • Basic rate tax payer: £10,000,000
  • Higher rate tax payer: £10,000,000

Changing stamp duty tax rates

First time buyers of a residential property no more than £500,000:

  • On the first £300,000: 0%
  • On the remainder: 5%

For non first time buyers or for first time buyers above £500,000:

  • Up to £125,000: 0%
  • The next £125,000 (the portion from £125,001 to £250,000): 2%
  • The next £675,000 (the portion from £250,001 to £925,000): 5%
  • The next £575,000 (the portion from £925,001 to £1.5 million): 10%
  • The remaining amount (the portion above £1.5 million): 12%

For additional properties over your first (i.e second home or more), normally an additional 3% is applied to the above figures.

For non-UK residents, you’ll be required to pay a different set of rates. You can view these on the UK government website.

Getting ready for the new tax year with proactive financial planning

As our ultimate guide to taxes points out, taxes are just a part of life. Making sure you understand them and plan for them is the best way to make the most of your money. It’s natural for your head to spin a little when trying to figure out how taxes apply to you personally, and that’s why personalised tax planning is such an effective way to help decide on your next financial steps. Making decisions that lead to good money habits will help you to lead a more relaxed life, knowing exactly where you stand with your finances.

The Financial Conduct Authority do not regulate inheritance tax planning.

Tax treatment varies according to individual circumstance and is subject to change.

Talk to an expert and get off on the right foot for the new year

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