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
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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 YearSo 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 ALLOWANCE
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.
PENSION TAX RELIEF
There are no changes to Pension Tax Relief in 2022/23 either.
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
If you want to find out more about Capital Gains Tax or understand what CGT is, read this article.
ADDITIONAL ALLOWANCES
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 INCOME
These figures apply to savings income for 2022 to 2023. Starting rate limit for savings is £5,000
DIVIDEND INCOME
Dividend rates apply to dividend income received above the £2,000 tax-free Dividend Allowance
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.
TRUSTEES’ INCOME
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.
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
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 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
None of these figures have changed from the 2021/22 tax year
CAPITAL GAINS RATES ON ASSETS
CAPITAL GAINS RATES ON PROPERTY
GAINS SUBJECT TO BUSINESS ASSET DISPOSAL
LIFETIME LIMIT ON QUALIFYING GAINS
GAINS SUBJECT TO INVESTORS’ RELIEF
LIFETIME LIMIT ON QUALIFYING GAINS
First time buyers of a residential property no more than £500,000:
For non first time buyers or for first time buyers above £500,000:
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.
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.
