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Tax Rates And Related Information

Corporation Tax

Financial year to 31 March 2023 31 March 2021
Tax Rate 19% 19%

Capital allowances

 2022/21 (£) 2021/20 (£)
Plant and machinery
– annual investment allowance £1m £1m
– main rate pool *18% *18%
– long life assets *6% *6%
– integral features *6% *6%
Cars – CO2 emissions 0g/km (zero emission) 100% 100%
Cars – CO2 emissions 1 – 50g/km (ULEV) *18% 100%
Cars – CO2 emissions 51 – 110g/km *6% *18%
Cars – CO2 emissions over 110g/km *6% *6%
Energy saving & environmentally beneficial assets 100% 100%

* Reducing balance.

Value added tax

Standard rate 20%
VAT fraction (where included cost) 1/6
Registration threshold £85,000
De-registration threshold £83,000
Optional flat-rate scheme for small businesses is available.

Research and development tax credits

Rates for reduction 2022/23 2021/22
SME rate 230% 230%
Large company (above line credit) 13% 13%
Rates for surrender of losses 2022/23 2021/22
SME rate 14.5% 14.5%
Large company (taxable) 13% 13%

Patent Box

 2022/23 2021/22
Effective tax rates on patent box profits 10% 10%

 

ISA limits

 2022/23 2021/22
Overall limits 20,000 20,000
Junior ISA limits 9,000 9,000
Lifetime ISA limits 4,000 4,000

Stamp duty land tax – England, Wales and Northern Ireland

Total consideration £ Residential Property Total Consideration Commercial Property
£1 – £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%

Additional residential and all corporate residential properties £40,000 ore more add 3% to SDLT rate

First time buyers do not pay SDLT on the first £300,000 of property purchases and 5% on the portion £300,001 – £500,000

Non-resident purchasers 2% surcharge on properties £40,000 or more

Land and buildings transaction tax – Scotland

Total consideration £ Residential Property Total Consideration 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 do not pay LBTT on the first £175,000 of property purchases

Additional residential and all corporate residential properties £40,000 or more add 4% to LBTT rate

Land transaction tax – Wales

Total consideration £ Residential Property Total Consideration Commercial Property
Up to £180,000 0% Up to £225,000 0%
£180,001 – £250,000 3.5% £225,001 – £250,000 1.0%
£400,001 – £750,000 7.5% Over £1,000,000 6.0%
£750,001 – £1,500,000 10%
Over £1,500,000 12.0%
Additional residential and all corporate residential properties £40,000 or more add 4% to LBTT rate

 

Income tax rates – England, Wales and Northern Ireland

Rate % Taxable income 2022/23 (£) Taxable income 2021/22 (£)
20** †Up to 37,700 †Up to 37,500
40*** †37,701 – 150,000 †37,501 – 150,000
45**** Over 150,000 Over 150,000

* Savings starting rate of 0% applies to savings income only and is only available if total income is no more than £17,570

** 8.75% for dividend income

*** 33.75% for dividend income

**** 39.35% for dividend income

Rate of income tax for discretionary trusts: 38.1% for dividend income, 45% for non-dividend income.

Income tax rates – Scotland (apply to non-savings and non-dividend income only)

Band Taxable income Scottish tax rate
Personal Allowance Up to £12,570 0%
Starter rate £12,571 to £14,732 19%
Basic rate £14,733 to £25,688 20%
Intermediate rate £25,689 to £43,662 21%
Higher rate £43,663 to £150,000 41%
Top rate over £150,000 46%

Income tax allowances

Allowance 2022/23 £ 2021/22 £
Personal allowance*
Individuals 12,570 12,570
Marriage allowance 1,260 1,250
Married couples allowance**
Allowance 9,415 9,125
Minimum amount 3,640 3,530
Blind person’s allowance 2,600 2,520
Dividend allowance 2,000 2,000
Personal savings allowance basic rate payer 1,000 1,000
Personal savings allowance higher rate payer 500 500
Small profits/rental income disregard up to 1,000 1,000
‘Rent-a-room’ 7,500 7,500

* Personal allowance is reduced by £1 for every £2 exceeding £100,000 of income. This is irrespective of age of date of birth.**

**Either partner 75 or over or born before 6 April 1935. Relief is restricted to a 10% tax credit.

Inheritance tax

Transfers on or after 6 April 2018 (husband and wife treated separately)

Band £ Lifetime rate £ Death rate £
0 – 325,000* NIL NIL
Over 325,000 20% **40%

* A further nil rate band of £175,000(£175,000 for 2020/21) may be available in relation to current or former residences. Nil rate bands of surviving spouses/civil partners may be increased by unused nil rate bands of deceased spouses/civil partners.

**Where ‘adjusted net income’ is above the income limit the age-related allowance is reduced by £1 for every £2 of excess income, until it is reduced to the basic level (but also see * and “Income tax allowances” above).

** A reduced rate of 36% applies where a deceased individual has left 10% or more of their net estate to charity.

Inheritance tax reliefs

£
Annual exemption 3,000
Small gifts exemption 250
Wedding gifts exemption
Gifts made by
– parent 5,000
– more remote ancestor 2,500
– bride/groom 2,500
– other person 1,000

Inheritance tax tapering relief

Rates for transfers on death also apply to gifts within seven years of death subject to tapering relief.

Years between gift and death Reduction in charge
0 – 3 NIL
3 – 4 20%
4 – 5 40%
5 – 6 60%
6 – 7 80%

National insurance contributions

Employees’ class 1 contributions on 2022/23

Total weekly earnings £ Rate
Below 242* NIL
243 – 967 13.25%
Over 967 3.25%
Married women’s reduced rate 7.1% on earnings between £242 and £967 per week
*Between £123 per week and £190 per week a zero rate applies to protect employees’ contributory benefit entitlement.
Employers’ class 1 contributions for 2022/23
Total weekly earnings £ Rate
Below 175 NIL
Above 175** 15.05%

**A rate of 0% is applied to Employees under 21 and Apprentices under 25 on earnings up to £967 per week.
Annual employment allowance for qualifying employers £5,000
Class 2 – self employed Flat rate £3.15 per week if earning exceed £6,725 per annum
Class 3 – voluntary Flat rate £15.85 per week
Class 4 – self employed 10.25% of profits between £11,908 and £50,270 per annum plus 3.25% on the excess

Car And Fuel Benefits

 

Cars
Minimum 14% of list price (emissions 1-50g/km CO2 (lower rates where emissions below this level)
Increments 1% for each additional 5g/km CO2 emissions over 95g/km CO2
Diesel cars 4% surcharge
Electric cars Depends on range 2% – 14% of list price
Maximum 37%
Emissions levels for most cars can be found on www.vca.gov.uk CO2 level rounded down to nearest 5g.
Fuel
Private fuel provided with company car – percentages as above for cars x £25,300
Approved mileage rates for business mileage in own car
Cars and vans Per Mile
1 – 10,000 miles 45p
Over 10,000 miles 25p
Advisory mileage rates for business mileage in company car from 1 June 2018 (Pending 2021 update from the government)

Fuel only allowances for company cars

Electric Petrol LPG Diesel
1400cc or less 5p 13p 8p 1600cc or less 11p
1401 – 2000cc 5p 15p 10p 1601cc – 2000cc 13p
2001cc or more 5p 22p 15p 2001cc or more 16p
Petrol hybrid cars are treated as petrol cars for purpose.

Capital Gains Tax

 2021/22 £ 2020/21 £
Tax rates Individuals – basic rate 10%/18%* 10%/18%*
Individuals – higher/additional rate 20%/28%* 20%/28%*
Trusts and personal representatives 20%/28%* 20%/28%*
Companies see CT rates see CT rates
Annual exemptions
Individuals £12,300 £12,300
Trusts (maximum) £6,150 £6,150
Chattels proceeds exemption £6,000 £6,000
Capital gains tax business asset disposal relief:
Lifetime limit £1,000,000 £1,000,000
Rate 10% 10%
*There is an 8% additional tax charge on the capital gains of a residential property.

High income child benefit charge

2022/23 Weekly £ Annual £
Benefit receivable for eldest/Only child 21.80 1,133.60
Benefit receivable for other children 14.45 751.40

For taxpayers with income between £50,000 and £60,000 a charge of 1% for every £100 of income over £50,000 and 100% where income exceeds £60,000