Please find below the link to our updated Tax Tables for the 2022/23 tax year. These tables are up-to-date with everything announced in the Winter Economy Plan 2021, Autumn Budget 2021, the Scottish and Welsh Budgets 2021 and the Spring Statement 2022, giving you all the key numbers in one place.
Several key allowances, including the personal allowance and higher and additional tax thresholds, capital gains tax, inheritance tax and pensions were frozen. In the current inflationary context, these freezes are tantamount to tax increases.
Key changes for the forthcoming 2022/23 tax year include:
• The rate of tax dividends above the dividend allowance will rise by 1.25 percentage points.
• National insurance rates will rise by 1.25 percentage points in 2022/23 as announced in the NHS/social care package.
• The primary threshold for Class 1 national insurance contributions (NICs) will increase from £9,880 a year to £12,570 a year from 6 July 2022, bringing it in line with the frozen personal allowance.
• For company directors, who are subject to special rules, the equivalent annual amount from July will be £11,908. From 2023/24, all employees will share the same £12,570 annual threshold. The maximum potential Class 1 employee NICs saving in 2022/23 is £269.
• For the self-employed, the lower profits limit will increase from £9,880 to £11,908 in 2022/23, rising to £12,570 in 2023/24. Class 2 NICs will not be payable if profits are below these limits. The maximum potential Class 4 NICs saving in 2022/23 is £208.
• The employment allowance will be increased to £5,000 from April 2022.
• VAT relief for the installation of energy saving materials (ESMs) will be extended and there will be a time-limited zero rate for the installation of ESMs.
If you have any questions about the contents of your Tax Tables or how any aspects of your tax and financial planning may be affected in the forthcoming tax year, please reach out to your dedicated partner or manager to discuss them.
INCOME TAX
| Main personal allowances and reliefs | 22/23 | 21/22 |
| Personal allowance* | £12,570 | £12,570 |
| Marriage/civil partner’s transferable allowance Married couple’s/civil partner’s allowance at 10%† | £1,260 | £1,260 |
| (if at least one born before 6/4/35) – maximum | £9,415 | £9,125 |
| – minimum | £3,640 | £3,530 |
| Blind person’s allowance | £2,600 | £2,520 |
| Rent-a-room relief | £7,500 | £7,500 |
| Property allowance and trading allowance (each) | £1,000 | £1,000 |
*Personal allowance reduced by £1 for every £2 of adjusted net income over £100,000
†Married couple’s/civil partner’s allowance reduced by £1 for every £2 of adjusted net income over £31,400 (£30,400 for 21/22) ,until minimum reached
| UK taxpayers excluding Scottish taxpayers’ non-dividend, non-savings income | 22/23 | 21/22 |
| 20% basic rate on first slice of taxable income up to | £37,700 | £37,700 |
| 40% higher rate on next slice of taxable income over | £37,700 | £37,700 |
| 45% additional rate on taxable income over | £150,000 | £150,000 |
| Scottish taxpayers – non-dividend, non-savings income |
| 19% starter rate on taxable income up to | £2,162 | £2,097 |
| 20% basic rate on next slice up to | £13,118 | £12,726 |
| 21% intermediate rate on next slice up to | £31,092 | £31,092 |
| 41% higher rate on next slice up to | £150,000 | £150,000 |
| 46% top rate on income over | £150,000 | £150,000 |
All UK taxpayers
| Starting rate at 0% on band of savings income up to** | £5,000 | £5,000 |
Personal savings allowance at 0%:
| Basic rate | £1,000 | £1,000 |
| Higher rate | £500 | £500 |
| Additional rate | £0 | £0 |
| Dividend allowance at 0%: | All individuals | £2,000 | £2,000 |
Tax rates on dividend income:
| Basic rate | 8.75% | 7.5% |
| Higher rate | 33.75% | 32.5% |
| Additional rate | 39.35% | 38.1% |
| Trusts: Standard rate band generally: | £1,000 | £1,000 |
Rate applicable to trusts:
| Dividends | 39.35% | 38.1% |
| Other income | 45% | 45% |
**Not available if taxable non-savings income exceeds the starting rate band
High Income Child Benefit Charge, 1% of benefit per £100 of adjusted net income between £50,000–£60,000
REGISTERED PENSIONS
| 22/23 | 21/22 | |
| Lifetime allowance | £1,073,100 | £1,073,100 |
| Money purchase annual allowance | £4,000 | £4,000 |
| Annual allowance* | £40,000 | £40,000 |
Annual allowance charge on excess is at applicable tax rate(s) on earnings Lifetime allowance charge if excess is drawn as cash 55%; as income 25% Pension commencement lump sum up to 25% of pension benefit value
*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
STATE PENSIONS
| Annual | Weekly | |
| New state pension – where state pension age reached after 5/4/16 | £9,627.80 | £185.15 |
| Basic state pension – single person* | £7,376.20 | £141.85 |
| Basic state pension – spouse/civil partner* | £4,420.00 | £85.00 |
*State pension age reached before 6/4/16
TAX INCENTIVISED INVESTMENT
| 22/23 | 21/22 | |
| Total Individual Savings Account (ISA) limit, excluding Junior ISAs (JISAs) | £20,000 | £20,000 |
| Lifetime ISA | £4,000 | £4,000 |
| JISA and Child Trust Fund | £9,000 | £9,000 |
| Venture Capital Trust (VCT) at 30% | £200,000 | £200,000 |
| Enterprise Investment Scheme (EIS) at 30%* | £2,000,000 | £2,000,000 |
| EIS eligible for CGT deferral relief | No limit | No limit |
| Seed EIS (SEIS) at 50% | £100,000 | £100,000 |
| SEIS CGT reinvestment relief | 50% | 50% |
*Above £1,000,000 investment must be in knowledge-intensive companies
NATIONAL INSURANCE CONTRIBUTIONS
| Class 1 | Employee | Employer |
| NICs rate | 13.25% | 15.05% |
| No NICs for employees generally on the first | £242 pw† | £175 pw |
| No NICs* for: younger/veteran employees on first | £242 pw† | £967 pw |
| No NICs* for: freeport employees on first | £242 pw† | £481 pw |
| NICs rate charged up to | £967 pw | No limit |
| 3.25% NICs on earnings over | £967 pw | N/A |
*Employees generally under 21 years and apprentices under 25 years. Veterans in first 12 months of civilian employment. Employees at freeports in Great Britain in the first three years of employment from 6 April 2022
| Employment Allowance | £5,000 |
Per business – not available if sole employee is a director or employer’s NICs for 21/22 £100,000 or more
| Limits and Thresholds | Weekly | Annual |
| Lower earnings limit | £123 | £6,396 |
| Primary threshold | £242† | £12,570** |
| Secondary threshold | £175 | £9,100 |
| Upper earnings limit (and upper secondary thresholds) | £967 | £50,270 |
| Class 1A Employer | On car and fuel benefits and most other taxable benefits provided to employees and directors | 15.05% |
| Class 2 Self-employed | Flat rate per week | £3.15 (£163.80 pa) |
| Small profits threshold | £6,725 | |
| Class 4 Self-employed | On annual profits of £11,908 to £50,270: | 10.25% |
| Over £50,270: | 3.25% | |
| Class 3 | Voluntary flat rate per week | £15.85 (£824.20 pa) |
†£190 pw before 6 July 2022 **£9,880 before 6 July 2022
CAPITAL GAINS TAX
| Tax Rates – Individuals | 22/23 | 21/22 |
| Below UK higher rate income tax band | 10% | 10% |
| Within UK higher and additional rate income tax | bands 20% | 20% |
| Tax Rate – Trusts and Estates | 20% | 20% |
| Surcharge for residential property and carried interest | 8% | 8% |
| Annual exempt amount: Individuals, estates, etc. | £12,300 | £12,300 |
| Annual exempt amount: Trusts generally | £6,150 | £6,150 |
| Chattels gain limited to 5⁄3rds of proceeds exceeding | £6,000 | £6,000 |
Business Asset Disposal Relief – 10% on lifetime limit of £1,000,000 for trading businesses and companies (minimum 5% participation) held for at least 2 years
INHERITANCE TAX
| 22/23 | 21/22 | |
| Nil-rate band* | £325,000 | £325,000 |
| Residence nil-rate band*† | £175,000 | £175,000 |
| Rate of tax on excess | 40% | 40% |
| Rate if at least 10% of net estate left to charity | 36% | 36% |
| Lifetime transfers to and from certain trusts | 20% | 20% |
| Overseas domiciled spouse/civil partner exemption | £325,000 | £325,000 |
| 100% relief: businesses, unlisted/AIM companies, certain farmland/ buildings | ||
| 50% relief: certain other business assets e.g. farmland let before 1/9/95 | ||
| Annual exempt gifts of: | £3,000 per donor | £250 per donee |
Tapered tax charge on lifetime gifts within 7 years of death
| Years between gift and death | 0–3 | 3-4 | 4-5 | 5-6 | 6-7 |
| % of death tax charge | 100 | 80 | 60 | 40 | 20 |
*Up to 100% of the unused proportion of a deceased spouse’s/civil partner’s nil-rate band and/or residence nil-rate band can be claimed on the survivor’s death
†Estates over £2,000,000: the value of the residence nil-rate band is reduced by 50% of the excess over £2,000,000
STAMP DUTIES AND PROPERTY TRANSACTION TAXES
| Stamp Duty and SDRT: Stocks and marketable securities | 0.5% |
| Additional residential and all corporate residential properties | £40,000 or more – add 3% to SDLT rates and 4% to LBTT and LTT rates |
England & N Ireland – Stamp Duty Land Tax (SDLT) on slices of value
| Residential property | % | Commercial property* | % |
| Up to £125,000 | 0 | Up to £150,000 | 0 |
| £125,001–£250,000 | 2 | £150,001–£250,000 | 2 |
| £250,001–£925,000 | 5 | Over £250,000 | 5 |
| £925,001–£1,500,000 | 10 | ||
| Over £1,500,000 | 12 |
*0% for freeport qualifying property in England only
First time buyers: 0% on first £300,000 for properties up to £500,000 Non-resident purchasers: 2% surcharge on properties £40,000 or more Residential properties bought by companies etc. over £500,000: 15% of total consideration, subject to certain exemptions
| Scotland – Land and Buildings Transaction Tax (LBTT) on slices of value Residential property | % | Commercial property | % |
| Up to £145,000 | 0 | Up to £150,000 | 0 |
| £145,001–£250,000 | 2 | £150,001–£250,000 | 1 |
| £250,001–£325,000 | 5 | Over £250,000 | 5 |
| £325,001–£750,000 | 10 | ||
| Over £750,000 | 12 |
First time buyers: 0% on the first £175,000
Wales – Land Transaction Tax (LTT) on slices of value
| Residential property | % | Commercial property | % |
| Up to £180,000 | 0 | Up to £225,000 | 0 |
| £180,001–£250,000 | 3.5 | £225,001–£250,000 | 1 |
| £250,001–£400,000 | 5 | £250,001–£1,000,000 | 5 |
| £400,001–£750,000 | 7.5 | Over £1,000,000 | 6 |
| £750,001–£1,500,000 | 10 | ||
| Over £1,500,000 | 12 |
CORPORATION TAX
| Years to 31/3/23 and 31/3/22 | Profits: 19% | Diverted profits: 25% |
| Loans to participators | Made in 21/22: 32.5% | Made in 22/23: 33.75% |
VALUE ADDED TAX
| Standard rate | 20% | Domestic fuel | 5% |
Installation of energy saving materials (except Northern Ireland) 0% Since 1/4/17:
| Registration level | £85,000 |
| Deregistration | £83,000 |
| Flat rate scheme turnover limit | £150,000 |
| Cash and annual accounting schemes turnover limit | £1,350,000 |
CAR BENEFITS
Taxable amount based on original list price and CO2 emissions in g/km.
Zero emission cars 2%
Petrol and diesel hybrids with CO2 emissions 1–50g/km
Range – electric-only miles
| <30 | 30-39 | 40-69 | 70-129 | 130+ |
| 14% | 12% | 8% | 5% | 2% |
All non-diesel cars over 50g/km CO2
| 51–54 | 55 & over |
| 15% | 16%* – 37% |
*Increased for every extra 5g/km by 1% up to the maximum 37%
Diesels not meeting RDE2: add 4% to non-diesel rates, up to 37%
| Fuel Benefit – taxable amount for private use | 22/23 | 21/22 |
| CO2 % charge used for car benefit multiplied by | £25,300 | £24,600 |
VANS – FOR PRIVATE USE
| 22/23 | 21/22 | |
| Zero emission: chargeable amount | Nil | Nil |
| Other vans: chargeable amount | £3,600 | £3,500 |
| Fuel: chargeable amount | £688 | £669 |
TAX-FREE BUSINESS MILEAGE ALLOWANCE – OWN VEHICLE
| Cars and vans first 10,000 miles | 45p per mile | then 25p per mile |
| Qualifying passenger | 5p per mile | |
| Motorcycles | 24p per mile | Bicycles 20p per mile |
MAIN CAPITAL AND OTHER ALLOWANCES
| Plant & machinery (P&M) 100% annual investment allowance (1st year) To 31/3/23 | £1,000,000 |
| P&M* super-deduction first year allowance (FYA) for companies to 31/3/23 | 130% |
| Special rate P&M* FYA for companies to 31/3/23 | 50% |
| Plant and machinery** | 18% |
| Patent rights and know-how** | 25% |
| Special rate P&M e.g. long-life assets and integral features of buildings** | 6% |
| Structures and buildings (straight line)† | 3% |
| Electric charge points | 100% |
Motor Cars
| CO2 emissions of g/km: | 0* | 1-50 | Over 50 |
| Capital allowance: | 100% first year | 18% pa** | 6% pa** |
*New and unused only **Annual reducing balance †10% for freeport sites in GB
Research and Development
| Capital expenditure | 100% |
| Revenue expenditure relief – small/medium-sized companies | 230% |
| Research and development expenditure credit – large companies | 13% |
© Copyright 23 March 2022 Subject to relevant legislation For information only Always seek professional advice before acting
