- Income Tax (non Scottish)
- Scottish income tax
- Tax on savings
- Personal Savings Allowance
- Personal Allowance
- Dividend tax allowance
- Special rates of income tax for trustees (discretionary trusts and interest in possession trusts)
- Marriage Allowance & Married Couples Allowance
- National Insurance
- Working and Child Tax Credits, Child Benefit and Guardians Allowance
- Capital, assets and property
- Business
- New flat rate State Pension
- More help with these subjects...
- Related Content
UK Tax & Allowances
In this article
- Income Tax (non Scottish)
- Scottish income tax
- Tax on savings
- Personal Savings Allowance
- Personal Allowance
- Dividend tax allowance
- Special rates of income tax for trustees (discretionary trusts and interest in possession trusts)
- Marriage Allowance & Married Couples Allowance
- National Insurance
- Working and Child Tax Credits, Child Benefit and Guardians Allowance
- Capital, assets and property
- Business
- New flat rate State Pension
- More help with these subjects...
Income Tax (non Scottish)
Tax/Allowance | 2020/21 | 2021/22 | 2022/23 | Further information |
---|---|---|---|---|
Basic rate income tax band (20%) | £0 - £37,500 | £0 - £37,700 | £0 - £37,700 | Read more about income tax |
Higher rate income tax band (40%) | £37,501 - £150,000 | £37,701 - £150,000 | £37,701 - £150,000 | |
Additional rate income tax band (45%) | £150,000+ | £150,000+ | £150,000+ |
Scottish income tax
Tax/Allowance | 2020/21 | 2021/22 | 2022/23 | Further information |
---|---|---|---|---|
Starter rate income tax (19%) | £0 - £2,085 | £0 - £2,097 | £0 - £2,162 | Read more about Scottish tax rates |
Basic rate income tax (20%) | £2,086 - £12,658 | £2,098 - £12,726 | £2,163 - £13,118 | |
Intermediate rate income tax (21%) | £12,659 - £30,930 | £12,727 - £31,092 | £13,119 – £31,092 | |
Higher rate income tax (40%) |
n/a |
n/a | n/a | |
Higher rate income tax (41%) | £30,931 - £150,000 | £31,093 - £150,000 | £31,093 - £150,000 | |
Additional rate income tax band (45%) |
n/a |
n/a | n/a | |
Top rate income tax band (46%) | £150,000 + | £150,000+ | £150,000+ |
Tax on savings
Tax/Allowance | 2020/21 | 2021/22 | 2022/23 | Further Information |
---|---|---|---|---|
Starting rate of tax on savings income | 0% | 0% | 0% | Read more about income tax |
20% | 20% | 20% | ||
40% | 40% | 40% | ||
Additional rate of tax on savings income | 45% | 45% | 45% |
Personal Savings Allowance
Tax/Allowance | 2020/21 | 2021/22 | 2022/23 | Further information |
---|---|---|---|---|
Basis rate |
£1,000 | £1,000 | £1,000 |
|
Higher rate |
£500 | £500 | £500 | |
Additional rate |
£0 | £0 | £0 |
Personal Allowance
Tax/Allowance | 2020/21 | 2021/22 | 2022/23 | Further information |
---|---|---|---|---|
Personal allowance | £12,500 | £12,570 | £12,570 | Read more on personal allowances |
Blind |
£2,500 | £2,520 | £2,600 |
Dividend tax allowance
Tax/Allowance | 2020/21 | 2021/22 | 2022/23 | Further information |
---|---|---|---|---|
Dividend allowance | £2,000 | £2,000 | £2,000 | Read more about |
Dividend ordinary rate - for dividends otherwise taxable at the basic rate. | 7.5% | 7.5% | 8.75% | |
Dividend upper rate - for dividends otherwise taxable at the higher rate. | 32.5% | 32.5% | 33.75% | |
Dividend additional rate - for dividends otherwise taxable at the additional rate. | 38.1% | 38.1% | 39.35% |
Special rates of income tax for trustees (discretionary trusts and interest in possession trusts)
Tax/Allowance | 2020/21 | 2021/22 | 2022/23 | Further information |
---|---|---|---|---|
Discretionary trusts | Read more about special rates of income tax | |||
UK investment bonds | Gains above 1,000 taxed at 25% |
Gains above 1,000 taxed at 25% | Gains above 1,000 taxed at 25% | |
Offshore investment bonds | Gains above £1,000 taxed at 45% |
Gains above £1,000 taxed at 45% | Gains above £1,000 taxed at 45% | |
Unit trusts & OEICs | Dividends taxed at 7.5% and interest taxed at 20%. For income above £1,000, dividends are taxed at 38.1% and interest 45% |
Dividends taxed at 7.5% and interest taxed at 20%. For income above £1,000, dividends are taxed at 38.1% and interest 45% | Dividends taxed at 8.75% and interest taxed at 20%. For income above £1,000, dividends are taxed at 39.35% and interest 45% | |
Interest in Possession Trusts | ||||
UK investment bonds | In tax years post death, UK trustees are taxed at 25% |
In tax years post death, UK trustees are taxed at 25% | In tax years post death, UK trustees are taxed at 25% | |
Offshore investment bonds | In tax years post death, UK trustees are taxed at 45% |
In tax years post death, UK trustees are taxed at 45% | In tax years post death, UK trustees are taxed at 45% | |
Unit trusts and OEICs | Trustees are taxed at 20% on interest and 7.5% on dividends |
Trustees are taxed at 20% on interest and 7.5% on dividends | Trustees are taxed at 20% on interest and 8.75% on dividends |
Marriage Allowance & Married Couples Allowance
Tax/Allowance | 2020/21 | 2021/22 | 2022/23 | Further information |
---|---|---|---|---|
Marriage Allowance | £1,250 | £1,260 | £1,260 | Read more about Marriage Allowance |
Marriage Couple's Allowance for those born before 6 April 1935 | £9,075(max) £3,510(min) |
£9,125 (max) £3,53 0 (min) |
£9,415 (max) £3,640 (min) |
|
£30,200 | £30,400 | £31,400 |
National Insurance
Tax/Allowance | 2020/21 | 2021/22 | 2022/23 | Further information |
---|---|---|---|---|
Class 1 NICs: Employee and employer thresholds and allowance (£ per week - except where stated) |
Read more about National Insurance | |||
Lower Earnings Limit | £120 | £120 | £123 | |
Primary Threshold | £183 | £184 | £229* | |
Secondary Threshold | £169 | £170 | £175 | |
Upper Earnings Limit | £962 | £967 | £967 | |
Upper Secondary Threshold for under 21s | £962 | £967 | £967 | |
Apprentice Upper Secondary Threshold for under 25s | £962 | £967 | £967 | |
Employment Allowance (per employer) | £4,000 per year | £4,000 per year | £5,000 per year | |
*Employee National Insurance is using the “Effective Annual threshold” of £11,908 which refers to the Primary Threshold level if the weekly level was applied for a full year. This is based on the Primary Threshold being £9,880 from 6 April 2022 until 5 July 2022, and then £12,570 from 6 July 2022 until 5 April 2023 Class 1 NICs: Employee NIC rates |
||||
Below Weekly Lower Earnings Limit |
0% | 0% | 0% | |
Weekly Lower Earnings Limit to Primary Threshold | 0% | 0% | 0% | |
Primary Threshold to Upper Earnings Limit | 12% | 12% | 13.25% | |
Above Upper Earnings Limit | 2% | 2% | 3.25% | |
Married woman’s reduced rate for (primary) Class 1 contribution rates |
||||
Weekly earnings from between the Primary Threshold and Upper Earnings Limit |
5.85% | 5.85% | 7.1% | |
Weekly earnings above the Upper Earnings Limit |
2% | 2% | 3.25% | |
Class 1 NICs: Employer NIC rates (£ per week - except where stated) |
||||
Employer’s (secondary) Class 1 contribution rates | ||||
Below the Secondary Threshold | 0% | 0% | 0% | |
Above the Secondary Threshold | 13.8% | 13.8% | 15.05% | |
Employer’s (secondary) Class 1 contribution rates for employees under 21 | ||||
Below the Upper Secondary Threshold | 0% | 0% | 0% | |
Above Upper Secondary Threshold | 13.8% | 13.8% | 15.05% | |
Employer’s (secondary) Class 1 contribution rates for Apprentices under 25 | ||||
Below the Upper Secondary Threshold | 0% | 0% | 0% | |
Above Upper Secondary Threshold | 13.8% | 13.8% | 15.05% | |
Class 2 NICs: Self-employed rates and thresholds (£ per week - except where stated) |
||||
Small Profits Threshold | £6,475 per year | £6,515 per year | £6,725 per year | |
Above the Small Profits Threshold | £3.05 | £3.05 | £3.15 | |
Class 3 NICs: Other rates and thresholds (£ per week) |
||||
Voluntary contributions |
£15.30 | £15.40 | £15.85 | |
Class 4 NICs: Self-employed rates and thresholds (£ per year) |
||||
Lower Profits Limit | £9,500 | £9,568 | £9,880 | |
Upper Profits Limit | £50,000 | £50,270 | £50,270 | |
Class 4 contribution rates |
||||
Below the Lower Profits Limit | 0% | 0% | 0% | |
Between the Lower Profits Limit and Upper Profits Limit | 9% | 9% | 10.25% | |
Above the Upper Profits Limit |
2% | 2% | 3.25% |
Working and Child Tax Credits, Child Benefit and Guardians Allowance
Tax/Allowance | 2020/21 | 2021/22 | Further information | |
---|---|---|---|---|
Working tax credits (per year) |
Read more about child benefit and guardians allowance | |||
Basic element | £1,995 | £2,005 Announced Nov 2021 | ||
£2,045 | £2,060 Announced Nov 2021 | |||
£825 | £830 Announced Nov 2021 | |||
Disabled worker element | £3,220 | £3,240 Announced Nov 2021 | ||
Severe disability element | £1,390 | £1,400 Announced Nov 2021 | ||
Childcare element of the working tax credit (per week) | ||||
Maximum eligible cost for one child | £175 | £175 Announced Nov 2021 | ||
Maximum eligible cost for two or more children | £300 | £300 Announced Nov 2021 | ||
Percentage of eligible costs covered | 70% | 70% Announced Nov 2021 | ||
Child tax credit (per year) | ||||
Family element | £545 | £545 Announced Nov 2021 | ||
Child element | £2,830 | £2,845 Announced Nov 2021 | ||
Disabled child element | £3,415 | £3,435 Announced Nov 2021 | ||
£4,800 | £4,825 Announced Nov 2021 | |||
Child benefit (per week) | ||||
Eldest/only child | £21.05 | £21.15 Announced Nov 2021 | ||
Other children | £13.95 | £14.00 Announced Nov 2021 | ||
Guardian's allowance | £17.90 | £18.00 Announced Nov 2021 |
Capital, assets and property
Tax/Allowance | 2020/21 | 2021/22 | 2022/23 | Further information |
---|---|---|---|---|
Pensions allowances | Read more about pensions allowances | |||
Lifetime Allowance limit | £1,073,100 | £1,073,100 | £1,073,100 | |
Annual Allowance limit | £40,000 | £40,000 | £40,000 | |
Tapered Annual Allowance | From £4,000 to £40,000 | From £4,000 to £40,000 | From £4,000 to £40,000 | |
Money Purchase Annual Allowance | £4,000 | £4,000 | £4,000 | |
Tax free savings accounts | Read more about Tax free savings accounts | |||
Individual Savings Account (ISA) subscription limit | £20,000* *Of which £4,000 may be saved into a Lifetime ISA |
£20,000* *Of which £4,000 may be saved into a Lifetime ISA |
£20,000* *Of which £4,000 may be saved into a Lifetime ISA |
|
Junior ISA subscription limit | £9,000 | £9,000 | £9,000 | |
Child Trust Fund (CTF) subscription limit | £9,000 | £9,000 | £9,000 | |
Insurance Premium Tax | ||||
Standard rate | 12% | 12% | 12% | |
Higher rate | 20% | 20% | 20% | |
Capital Gains Tax | Read more about Capital Gains Tax | |||
Main rates for individuals | 10% / 20% | 10% / 20% | 10% / 20% | |
Rates for individuals (for gains on residential property not eligible for Private Residence Relief, and carried interest) | 18% / 28% | 18% / 28% | 18% / 28% | |
Main rate for trustees and personal representatives | 20% | 20% | 20% | |
Rate for trustees and personal representatives (for gains on residential property not eligible for Private Residence Relief) | 28% | 28% | 28% | |
Annual Exempt Amount (AEA) for individuals and personal representatives | £12,300 | £12,300 | £12,300 | |
AEA for most trustees | £6,150 | £6,150 | £6,150 | |
Rate on gains subject to entrepreneurs’ relief | 10% | 10% | 10% | |
Rate on gains subject to investors’ relief | 10% | 10% | 10% | |
Business Asset Disposal Relief (formerly Entrepreneurs’ relief): lifetime limit on gains for entrepreneurs |
£10,000,000 | £1,000,000 | £1,000,000 | |
Investors’ relief: lifetime limit on gains for external investors | £10,000,000 | £10,000,000 | £10,000,000 | |
Inheritance tax | Read more about Inheritance tax | |||
Rate (for estates) | 40% | 40% | 40% | |
Reduced rate (for estates leaving 10% or more to charity) | 36% | 36% | 36% | |
Rate (for chargeable lifetime transfers) | 20% | 20% | 20% | |
Nil rate band limit | £325,000 | £325,000 | £325,000 | |
Residence nil rate band limit | £175,000 | £175,000 | £175,000 | |
Taper threshold for residence nil-rate band | £2,000,000 | £2,000,000 | £2,000,000 | |
Stamp Duty Land Tax - residential property | Read more about Stamp Duty Land Tax | |||
Standard Rate (on portion of value above threshold) | ||||
£0 to £125,000 | 0% | 0% | 0% | |
£125,000 to £250,000 | 2% | 2% | 2% | |
£250,000 to £925,000 | 5% | 5% | 5% | |
£925,000 to £1,500,000 | 10% | 10% | 10% | |
£1,500,000 + | 12% | 12% | 12% | |
Rate (on portion of value above threshold) on or after 1 April 2016 if purchase is of an additional residential property | ||||
£0 to £125,000 | 3% | 3% | 3% | |
£125,000 to £250,000 | 5% | 5% | 5% | |
£250,000 to £925,000 | 8% | 8% | 8% | |
£925,000 to £1,500,000 | 13% | 13% | 13% | |
£1,500,000 + | 15% | 15% | 15% | |
Rates for first-time buyers purchasing properties worth £500,000 or less | ||||
£0 to £300,000 | 0% 0% | 0% | 0% | |
£300,000 to £500,000 | 5% 5% | 5% | 5% | |
£500,000 + | Standard rates | Standard rates | Standard rates | |
Stamp Duty Land Tax - non-residential property | Read more about Stamp Duty Land Tax | |||
0 to £150,000 | 0% | 0% | 0% | |
£150,000 to £250,000 | 2% | 2% | 2% | |
£250,000 + | 5% | 5% | 5% |
Business
Tax/Allowance | 2020/21 | 2021/22 | 2022/23 | Further information |
---|---|---|---|---|
Corporation tax rates | Read more about |
|||
Main rate |
19% | 19% | 19% | |
Value Added Tax |
||||
Standard rate | 20% | 20% | 20% | |
Reduced rate | 5% | 5% | 5% | |
Zero rate items | 0% | 0% | 0% | |
VAT registration threshold | £85,000 | £85,000 | £85,000 | |
VAT deregistration threshold |
£83,000 | £83,000 | £83,000 |
New flat rate State Pension
Tax/Allowance | 2020/21 | 2021/22 | 2022/23 | Further information |
---|---|---|---|---|
Full new |
£175.20 | £179.60 | £185.15 | Read more about the new State Pension |
More help with these subjects...
Income tax
Income tax rates and order of tax
Gift aid donations by individuals: the facts
Reduce the impact of the high income child benefit charge
Income tax personal allowance: the facts
Domicile status for individuals: the facts
Income tax personal allowance: planning ideas
Inheritance Tax
Transferable nil rate band: planning ideas
Normal expenditure out of income exemption
Inheritance Tax potentially exempt transfers
Family investment companies
Inheritance Tax meets Child Benefit Tax
Inheritance Tax taper relief
Inheritance tax and pensions
Gifting guidance for attorneys and deputies
Transferable nil rate band: the facts
ISA
Individual savings accounts (ISAs): planning ideas
Individual Savings Accounts (ISAs): the facts
Pensions allowances
Lifetime allowance: the facts
Money purchase annual allowance (MPAA)
Annual allowance for pension savings
Tapered annual allowance planning ideas and potential pitfalls
Tapered annual allowance
Trusts
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