Tax rates 2022

Tax Data - Rates for 2022/2023

INCOME TAX

Rates and bands (other than savings and dividend income)

2022/23
Band £

Rate %
2020/21
Band £

Rate %

0 – 37,700

20

0 – 37,700

20

37,701 – 150,000

40

37,701 – 150,000

40

Over 150,000

45

Over 150,000

45

Savings income – 2022/23 and 2021/22

Savings allowance basic rate

£1,000

Savings allowance higher rate

£500

Dividend income – 2021/22 and 2020/21

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

DEVOLVED INCOME TAX

Scotland rates and bands

2022/23
Band £

Rate %
2021/22
Band £

Rate %

0 – 2,162

19

0 – 2,097

19

2,163 – 13,118

20

2,098 – 12,726

20

13,119 – 31,092

21

12,727 – 31,092

21

31,093 – 150,000

41

31,093 – 150,000

41

Over 150,000

46

Over 150,000

46

Wales rates and bands

2022/23
Band £

Rate %
2021/22
Band £

Rate %

0 – 37,700

20

0 – 37,700

20

37,701 – 150,000

40

37,701 – 150,000

40

Over 150,000

45

Over 150,000

45

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%

20%

Over £325,000

A further nil rate band of £175,0000 may be available in relation to current or former residences.

CAR VAN AND FUEL BENEFITS

2022/23
CO2 emissions g/km
 
% of list pricetaxed

0

  2

1-50

 

 

Electric range

130 or more

2

  70 – 129

5

  40 – 69

8

  30 – 39

12

  under 30

14

51-54

 

15

For every extra 5

 

+1

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 CO2 figure does not end in a 5 or 0 round down to the nearest 5 or 0.

2022/2023  

Car fuel benefit

£25,300

Van benefit

£3,600

Van fuel benefit

£688

NATIONAL INSURANCE

2022/23 Class 1 (employed) rates

Employee
Earnings per week
% Employer
Earnings per week
%

Up to £190*

Nil

Up to £175

Nil

£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

SELECTED RATES

  2022/23 2021/22

Basic State Pension

185.15

179.60

Old State Pension

141.85

137.60

Statutory pay standard rates – average weekly earnings of £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.

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.

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

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 March 2023 130%  
First Year Allowance (FYA) on certain plant, machinery and cars of 0g/km 100%  
Corporation tax FYA on long-life assets, integral features of buildings, etc. Until March 2023 50%  
Annual Investment Allowance (AIA) £1,000,000 (£200,000 from 1 April 2023) Excludes cars    
Writing Down Allowance
Long-life assets, integral features of buildings, cars
over 50g/kg
6%  
Other plant and machinery 18%  
Structures and Buildings Allowance 3%  

PENSIONS

  2022/23 2021/22

Lifetime Allowance limit

£1,073,100

£1,073,100

Annual Allowance limit

£40,000

£40,000

Money Purchase Annual Allowance

£4,000

£4,000

VALUE ADDED TAX

  From 1/4/22 From 1/4/21

Standard rate

20%

20%

Reduced rate

5%

5%

Annual Registration Limit

£85,000

£85,000

Annual Deregistration Limit

£83,000

£83,000

PROPERTY TAXES

Across the whole of the UK, residential rates may be increased by 3% (4% in Scotland and Wales) where further residential properties are acquired.

Stamp Duty Land Tax

Land and buildings in England and N. Ireland

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

Land and Buildings Transaction Tax

Land and buildings in Scotland.

Residential Band
£
Rate
%
Non-residential Band
£
Rate
%

0 – 145,000

0

0 – 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 Buyer relief may apply on the first £175,000 of residential purchases.

Land Transaction Tax

Land and buildings in Wales.

Residential Band £ Rate % Non-residential Band £ Rate %

0 – 250,000*

0

0 – 225,000

0

*250,001 – 400,000

5

225,001 – 250,000

1

400,001 – 750,000

7.5

250,001 – 1,000,000

5

750,001 – 1,500,000

10

Over 1,000,000

6

Over 1,500,000

12

 

 

IN-ACCOUNTANCY