2022-23 tax rates
www.scruttonbland.co.uk
Income Tax Rates and bands (other than savings and dividend income) 2022/23
2021/22
Band £
Rate % Band £
Rate %
0 - 37,700
20 0 - 37,700
20 40
37,701 - 150,000
40 37,701 - 150,000
Over 150,000 45 Income tax rates in Scotland and Wales on income other than savings and dividend income have been devolved. Savings income 2022/23 and 2021/22 Savings allowance basic rate £1,000 Savings allowance higher rate £500 A starting rate of 0% may be available unless taxable non-savings income exceeds £5,000. Dividend income 2022/23 2021/22 Dividend allowance £2,000 £2,000 Dividend ordinary rate 8.75% 7.5% Dividend upper rate 33.75% 32.5% Dividend additional rate 39.35% 38.1% Income Tax Reliefs 2022/23 2021/22 Personal allowance £12,570 £12,570 Personal allowance income limit £100,000 £100,000 Marriage allowance £1,260 £1,260 Married couple’s allowance £9,415 £9,125 - minimum amount £3,640 £3,530 - income limit £31,400 £30,400 Blind person’s allowance £2,600 £2,520 Individual Savings Accounts 2022/23 2021/22 Overall investment limit £20,000 £20,000 Junior account investment limit £9,000 £9,000 45 Over 150,000
Car, Van and Fuel Benefits 2022/23 CO 2 emissions g/km
% of list price taxed
0
2
1 - 50 Electric range 130 or more
2 5 8
70 - 129 40 - 69 30 - 39 under 30
12 14 15 +1
51 - 54
For every extra 5 160 and above
37 For fully diesel cars generally add a 4% supplement (unless the car is registered on or after 1 September 2017 and meets the Euro 6d emissions standard) but the maximum is still 37%. For emissions of 75g/km or more if the CO 2 figure does not end in a 5 or 0 round down to the nearest 5 or 0. 2022/23 Car fuel benefit £25,300 Van benefit £3,600 Van fuel benefit £688 Stamp Duty Land Tax Land and buildings in England and N. Ireland Residential rates may be increased by 3% where further residential properties are acquired. Residential Band £ Rate % Non-residential Band £ Rate % 0 - 125,000 0 0 - 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 First-Time Buyer relief may apply to residential purchases up to £500,000.
National Insurance 2022/23 Class 1 (employed) rates Employee
Employer
Earnings per week
% Earnings per week
% Nil
Up to £190*
Nil
Up to £175
£190.01* - £967
13.25 Over £175
15.05
Over £967 3.25 Entitlement to contribution-based benefits for employees retained for earnings between £123 and £190* per week. The employer rate is 0% for certain military veterans, employees under 21 and apprentices under 25 on earnings up to £967 per week. (*£242 from 6 July 2022.) Class 1A (employers) 15.05% on employee taxable benefits Class 1B (employers) 15.05% on PAYE Settlement Agreements Class 2 (self-employed) nil on profits between £6,725 and £11,908 plus £3.15 per week where profits over £11,908 Class 3 (voluntary) flat rate per week £15.85 Class 4 (self-employed) 10.25% on profits between £11,908 and £50,270 plus 3.25% on profits over £50,270 Capital Gains Tax Individuals 2022/23 2021/22 Exemption £12,300 £12,300 Standard rate 10% 10% Higher/additional rate 20% 20% Trusts Exemption £6,150 £6,150 Rate 20% 20% Higher rates (18/28%) may apply to the disposal of certain residential property and carried interest. Business Asset Disposal Relief The first £1m of qualifying gains are charged at 10%. Inheritance Tax Death rate Lifetime rate
Chargeable transfers 2022/23 and 2021/22
Nil
Nil
0 - £325,000 (nil rate band)
40% Over £325,000 A further nil rate band of £175,000 may be available in relation to current or former residences. 20%
Corporation Tax
Rate %
Rate %
Year to 31.3.23
19
Year to 31.3.22
19
Different rates apply for ring-fenced (broadly oil industry) profit. Capital Allowances
Corporation tax super-deduction on certain plant and machinery until 31 March 2023
130%
First Year Allowance (FYA) on certain plant, machinery and cars of 0g/km Corporation tax FYA on long-life assets, integral features of buildings, etc. until 31 March 2023 Annual Investment Allowance £1,000,000 (£200,000 from 1 April 2023) Excludes cars Writing Down Allowance Long-life assets, integral features of buildings, cars over 50g/km
100%
50%
6%
18%
Other plant and machinery
3%
Structures and Buildings Allowance
Pensions
2022/23 £1,073,100
2021/22
Lifetime Allowance limit Annual Allowance limit
£1,073,100
£40,000 £4,000
£40,000 £4,000
Money Purchase Annual Allowance
Value Added Tax
From 1.4.22
From 1.4.21
Standard rate Reduced rate
20%
20% 5% *
5%
Annual Registration Limit Annual Deregistration Limit
£85,000 £83,000
£85,000
£83,000 * 12.5% for hospitality and tourism from 1 October 2021 - 31 March 2022.
Disclaimer: Rates are for guidance only. No responsibility for loss occasioned by any person acting/ refraining from action as a result of this information can be accepted by the authors or firm.
Selected Rates
2022/23
2021/22
Weekly benefit
£
£
Basic State Pension Old State Pension
185.15 141.85
179.60
137.60 Statutory pay standard rates - average weekly earnings £123 (£120) or over Sick Pay 99.35 96.35 Maternity/Adoption Pay 156.66 151.97 Shared Parental Pay 156.66 151.97 Paternity Pay 156.66 151.97 National Living Wage and National Minimum Wage Age NLW 21-22 18-20 16-17 Apprentices From 1 April 2022 £9.50 £9.18 £6.83 £4.81 £4.81 Applies to apprentices under 19, or 19 and over in the first year of apprenticeship. NLW applies to those aged 23 and over. Tax Reliefs for Individuals 2022/23 and 2021/22 Enterprise Investment Scheme (EIS) Relief on investments in certain unquoted trading companies up to £1m per annum (£2m for knowledge intensive companies): • Income tax relief at 30% • Capital gains exemption on disposal Unlimited amounts of capital gains from the disposal of other assets may be able to be deferred by making an EIS investment. Seed Enterprise Investment Scheme (SEIS) Relief on investments in certain unquoted trading companies up to £100,000 per annum: • Income tax relief at 50% • Capital gains exemption on disposal Capital gains from the disposal of other assets may be exempt up to £50,000 per annum by making an SEIS investment. Venture Capital Trusts (VCTs) Relief on investments in certain quoted companies up to £200,000 per annum: • Income tax relief at 30% • Capital gains exemption on disposal Dividends received from VCTs may be exempt from income tax. All reliefs subject to detailed conditions being met.
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